SHAH ALAM: The prospects of the global wooden furniture manufacturing industry are still good despite the recent shortcomings, according to Latitude Tree Holdings Bhd (Latitude) managing director Lin Tzu Keng. 

“Rising cost of raw materials and the weakening of the US dollar as a result of the US subprime crisis has affected the industry, but the prospects are still good,” he said. 


“The weakening of the US dollar against the ringgit has affected the group’s results as most of our sales are denominated in dollars,” Lin said after the company AGM yesterday, but added that the problem was not as serious as it appeared.  

Latitude recorded revenue of RM102.26mil for the first quarter ended Sept 30, down 3.8% from RM106.26mil in the previous corresponding period. 

The group specialises in wooden furniture for the domestic and international markets. Its foreign markets, primarily the US, contribute 70% of group revenue annually 

“Despite the issues (in the US), we are not concerned so much as this would be cushioned by China’s withdrawal of export incentives in line with their World Trade Organisation (WTO) status,” he said. 

“Once China withdraws its incentives, the country would become less price competitive as manufacturers compared to Vietnam (or even Malaysia).” 

The group currently has three factories in Vietnam located on 100 acres and collectively have a built up area of 75 acres. Latitude is the top exporter of wooden furniture in Vietnam. 

Lin said the Vietnam operation contributed on average US$7mil a month. 

On the local front, the group closed down one of its four factories in April to consolidate its local operation. Lin said that it was a step that would bring long-term gain to the group.  

He claimed that Latitude was currently one of the top three exporters of rubberwood furniture in Malaysia. 

Going forward, the group hopes to list its indirect wholly-owned foreign unit, Latitude Tree (Vietnam) Co. Ltd, on the Ho Chi Minh City Stock Exchange by the second or third quarter of next year.