IE Singapore to give local furniture companies a boost

SINGAPORE: Singapore furniture companies need to upgrade to stay competitive. To give the industry an extra boost, IE Singapore has plans to take the local industry global.

The global furniture trade grew by almost 10 per cent between 2009 to 2010, from US$95 billion to US$105 billion, but it has since been in decline.

To give the industry a boost, the government is taking pro-active steps to drive business.

Singapore's Minister for Trade and Industry Lim Hng Kiang said: "Raising our productivity levels is another essential step towards driving growth in our local furniture industry. Our aim is to increase sector-wide nominal value-added per worker by 20 per cent and raise our local furniture industry's global market share to 1.5 per cent by 2015."

The Ministry of Trade and Industry has committed S$17 million towards market expansion and development over the next five years.

Last week, IE Singapore also increased its funding commitments from 50 per cent to 70 per cent for additional capability development. These include staff training and initiatives to promote sustainable design and intellectual property protection.

Lee Puay Min, divisional director of IE Singapore, said: "I think with increased funding, we do look at the holistic plan of the companies. For companies who are at different stages of export readiness in the markets, we will customise the assistance that we offer. There is no fixed kind of plan, we will speak to the companies directly, see what's the gap and do up an assistance scheme for them."

Still, one local furniture maker, Air Division, expects tough days ahead. Despite winning multiple awards for their innovative designs, the company has seen an almost 20 per cent fall in sales as volatility in external markets start to bite.

Michael Toh, managing director of Air Division, said: "In the last few months, I've see a slowdown. Maybe due to the economy and what's happening in Europe and the US, it has somehow affected Singapore. People are more conservative about spending now."

With traditional exports markets in a slump, companies are now encouraged to explore new emerging markets, including Latin America, the Middle East and China. For a start, IE Singapore has said it will take some companies to Mexico this year.