Vouch 15 Cover Story – Interview with Mr Goh & Mr Chiam ( JBFA)

Johor Bahru Property & Ecominic Outlook in 2016

Positive or Negative Thinking is a Matter of Attitude

Established in 1978, Johor Bahru Furniture Association (JBFA) comprises 183 members with its membership represented by enterprises in the furniture related industries including materials, manufacturing, retailing and wholesaling but excluding those of electrical and lighting. The aim of JBFA is to facilitate communication, information and expertise among members as well as serving as a liaison between the furniture industry and the government.

A range of activities are organized for its members throughout the year with one of the major events being the Lu Ban Annual Dinner in memory of Lu Ban, the master carpenter of ancient China. Started in 1980, the event is gaining momentum each year and in 2015, it made history with a record attendance of 1,400 guests.

The Johor Furniture Fair which started as an yearly event in 2007 has grown into a significant fair that is now held two times a year and has since become a trademark of JBFA . The aim of the fair is to provide a platform for business opportunities and industry networking, as well as a one-stop destination for customers to search information, seek advice and obtain products for their needs.

The Export Furniture Exhibition is held in March every year in Kuala Lumpur where a wide variety of latest collection and products are showcased whist suppliers and potential buyers meet to trade. Overseas visits and study tours are also organised for its members to gain exposure abroad and professional insights of the trade while regular seminars and talks are conducted with the aim to provide informed insight and guidance on up-to-date government policies and other issues arising.

On a social level, JBFA hosts a variety of festive activities, family gatherings and social events to promote bonding and socialization among members. For the benefits of its members, a programed has been set up to encourage and reward academic achievements by giving out scholarships to children of JBFA members who excel in their studies.

JBFA is an active association and small milestones are great encouragement to the team. For instance, the 2015 Lu Ban Annual Dinner had attracted an attendance rate of 90% and JBFA was able to provide each member two free tickets for the event. In addition, accumulated profit of the association is distributed to the members, which is unusual for an association.

Recently, a ‘Corridors through Time’ showcasing the association’s history and progress through old photographs and a timeline of the years gone by has been created to highlight the growth and accomplishments of JBFA. The history display is located at its Taman Mount Austin office.

President, Mr Goh Lai Chai

Graduated in Business Studies from Southern University College, Johor, Malaysia, Mr Goh Lai Chai has more than thirty years’ experience in the furniture industry and owns five furniture outlets in the city of Johor Bahru. He had served as JBFA Deputy President, 1st Vice President, Secretary General, and Treasurer before being elected its President. To Mr Goh, his goal is to make contributions and serve JBFA. People relationship is important to him and his role as President has trained him how to relate to people and the skills of speaking in public.

Secretary General, Mr Chiam Thard Shyann

Mr Chiam Thard Shyann, also a graduate from Southern University College, specializes in the industries of plywood and furniture hardware. He believes that the purpose of serving is for the benefits of the organization rather than for personal gains. One has to get involved in order to learn and make an impact. Most importantly, leaders must lead by example to achieve success.

What is your view on the economic outlook in Johor Bahru for the coming year from the perspective of the furniture industry?

The economic prospects are positive for Johor Bahru once the Iskandar development takes off. It is Government policies that would affect the outcome. However, we should tap into the China market and promote the tourism industry now that we have Legoland as a tourist attraction. The potential for Small Medium Enterprises (SMEs) in Johor Bahru remain strong. For example, the furniture industry is an attraction for Singapore companies because of the lower wages and labour costs.

What challenges does the furniture market face in the coming year and how do you see ways to address these challenges?

The challenges we face are worldwide as the world economy going through its peaks and troughs. When the economy is bad, we should be prepared to go further to take on the challenges. In the furniture industry, the driver of growth is Singapore where it accounts for 60% of the market demand. There will be a demand when properties in the local market are ready. In crisis lies opportunity. When the market is bad, prepare yourself to embrace future opportunities when they arise. Positive or negative thinking is a matter of attitude.

How does the Goods and Services Tax (GST) impact on your business?

The introduction of GST is positive. It offsets the 10% Sales Tax in a way but the weak Ringgit Malaysia counteracts the effect causing the cost to increase. The import and export sectors often need to seek expert advice on the ins and outs of GST. There are implementation issues to be addressed as well such as the undue delay and difficulty regarding GST reimbursement.

There are concerns that too many high-rise apartments and condos are being built in Johor Bahru. How does this affect the furniture industry?

The proliferation of high-rise apartments and condos will not have an immediate direct effect on the furniture industry as it is at the lower end of the demand line. It is not until the buildings are completed and residents set to move in that people start looking for furniture for their homes. Nonetheless, Johor Bahru still does not have the population to support furniture demand. We should expand our horizon and consider the Kuala Lumpur or other markets. There is potential for the Singapore market but the Government has to play a role in promoting the growth.

Are there too many furniture fairs in town so much so that they have hampered sales?

The Johor Furniture Fair is growing by the year and it is an opportunity to expose our shops and brands to the customers. The exhibitors’ aim is to impress at the furniture fair and draw in the crowd attempting to build more customers in the long run, not so much as striking a deal on the spot.

Will IKEA’s arrival in Johor Bahru impact on the business of traditional furniture stores?

IKEA is in the business of compact furniture for small spaces, small apartments, studios and little corners. The items sold at IKEA are more of home decorative accessories while the traditional furniture items cater to different demands and needs.