Ikea in Malaysia
1. INTRODUCTION
1.1 Introduction of Malaysia Furniture Industry
Ranking the 10th largest exporter of furniture in the world, Malaysia exports around 80% of its production. With large markets in US, Japan and Australia, Malaysia's has a strong position in the global furniture industry. With tremendous growth in exports to UAE, Saudi Arabia, the Philippines and Russia, Malaysia is now eyeing on countries like Algeria, Greece, Puerto Rico and Libya. Malaysia has always been known for its wood based furniture, owing to its natural resources. The government has set an annual growth target of 6.5% for wood based furniture by year 2020. In recent years, the growth has shifted from producing general products towards designing its own in propelling Malaysia onto the international arena. Popular with overseas buyers of the middle to high category, foreign buyers look to Malaysia for manufacturers who can meet their high production demand. Despite numerous economic downturns, the industry is still supported by a strong global demand. Chinese and Vietnamese furniture pose strong competition with lowered price furniture, Malaysian furniture continues to set itself apart with original design that places importance on aesthetics as well as its good work ethics. The government also plays an important role in nurturing the industry. Providing Pioneer Status for tax exemption and Investment Tax Allowance, the pro-business environment makes doing business easier and faster.
1.2 Introduction of Ikea
The IKEA story begins in 1926 when founder Ingvar Kamprad is born in Småland in southern Sweden. He is raised on 'Elmtaryd', a farm near the small village of Agunnaryd. Even as a young boy Ingvar knows he wants to develop a business. In 1920, at the age of five Ingvar Kamprad starts selling matches to his nearby neighbors and by the time he is seven, he starts selling further afield, using his bicycle. He finds that he can buy matches in bulk cheaply in Stockholm and
1.1 Introduction of Malaysia Furniture Industry
Ranking the 10th largest exporter of furniture in the world, Malaysia exports around 80% of its production. With large markets in US, Japan and Australia, Malaysia's has a strong position in the global furniture industry. With tremendous growth in exports to UAE, Saudi Arabia, the Philippines and Russia, Malaysia is now eyeing on countries like Algeria, Greece, Puerto Rico and Libya. Malaysia has always been known for its wood based furniture, owing to its natural resources. The government has set an annual growth target of 6.5% for wood based furniture by year 2020. In recent years, the growth has shifted from producing general products towards designing its own in propelling Malaysia onto the international arena. Popular with overseas buyers of the middle to high category, foreign buyers look to Malaysia for manufacturers who can meet their high production demand. Despite numerous economic downturns, the industry is still supported by a strong global demand. Chinese and Vietnamese furniture pose strong competition with lowered price furniture, Malaysian furniture continues to set itself apart with original design that places importance on aesthetics as well as its good work ethics. The government also plays an important role in nurturing the industry. Providing Pioneer Status for tax exemption and Investment Tax Allowance, the pro-business environment makes doing business easier and faster.
1.2 Introduction of Ikea
The IKEA story begins in 1926 when founder Ingvar Kamprad is born in Småland in southern Sweden. He is raised on 'Elmtaryd', a farm near the small village of Agunnaryd. Even as a young boy Ingvar knows he wants to develop a business. In 1920, at the age of five Ingvar Kamprad starts selling matches to his nearby neighbors and by the time he is seven, he starts selling further afield, using his bicycle. He finds that he can buy matches in bulk cheaply in Stockholm and