Currency Appreciation Could Cause Malaysian Furniture Export Costs To Rise.

- Mar 31, 2018-

Malaysia's exports rose by nearly 19 per cent year-on-year in 2017, the fastest pace of expansion since 2005. It was also the ninth year that China was again Malaysia's main trading partner. Last year, Malaysia's exports to China rose by almost a third, and imports from China rose by 15%.

Exporters are worried about the pace of appreciation of the ringgit, especially against the dollar.

Furniture exporters have expressed concern that a currency that has risen too quickly will inevitably be hurt by competitiveness.

Analysts say that Malaysian furniture exporters have little use hedging to reduce the risk of currency fluctuations.

In addition to the local currency, manufacturers are facing rising production costs.