|
* Adopted abbreviations : SC -
Subject Company (the company enquired by you)
N/A
- Not Applicable
EXECUTIVE SUMMARY
|
REGISTRATION NO.
|
:
|
628982-H
|
|
COMPANY NAME
|
:
|
AWANA SOFA SDN BHD
|
|
FORMER NAME
|
:
|
N/A
|
|
INCORPORATION DATE
|
:
|
23/09/2003
|
|
|
|
|
|
|
|
|
|
COMPANY STATUS
|
:
|
EXIST
|
|
LEGAL STATUS
|
:
|
EXEMPT PRIVATE
|
|
LISTED STATUS
|
:
|
NO
|
|
|
|
|
|
REGISTERED ADDRESS
|
:
|
35-A, LORONG PERDA SELATAN 1, BANDAR PERDA, 14000 BUKIT MERTAJAM,
PULAU PINANG, MALAYSIA.
|
|
BUSINESS ADDRESS
|
:
|
NO.912, JALAN PEKAN DARAT,, 13800 BUTTERWORTH, PULAU PINANG,
MALAYSIA.
|
|
TEL.NO.
|
:
|
04-3567437 / 3566437
|
|
FAX.NO.
|
:
|
04-3564437
|
|
EMAIL
|
:
|
awanasf@tm.net.my
|
|
WEB SITE
|
:
|
www.awanasofa.com.my
|
|
CONTACT PERSON
|
:
|
ANG TOON ONG ( CEO )
|
|
INDUSTRY CODE
|
:
|
36
|
|
PRINCIPAL ACTIVITY
|
:
|
MANUFACTURING OF FURNITURE
|
|
AUTHORISED CAPITAL
|
:
|
MYR 500,000.00
DIVIDED INTO
ORDINARY SHARE 500,000.00 OF MYR 1.00 EACH.
|
|
ISSUED AND PAID UP CAPITAL
|
:
|
MYR 250,000.00
DIVIDED INTO
ORDINARY SHARES 250,000 CASH OF MYR 1.00 EACH.
|
|
SALES
|
:
|
N/A
|
|
NET WORTH
|
:
|
N/A
|
|
|
|
|
|
STAFF STRENGTH
|
:
|
100 [2011]
|
|
|
|
LITIGATION
|
:
|
CLEAR
|
|
DEFAULTER CHECK
|
:
|
CLEAR
|
|
FINANCIAL CONDITION
|
:
|
N/A
|
|
PAYMENT
|
:
|
N/A
|
|
MANAGEMENT CAPABILITY
|
:
|
AVERAGE
|
|
|
|
|
|
COMMERCIAL RISK
|
:
|
MODERATE
|
|
CURRENCY EXPOSURE
|
:
|
HIGH
|
|
GENERAL REPUTATION
|
:
|
SATISFACTORY
|
|
INDUSTRY OUTLOOK
|
:
|
MARGINAL GROWTH
|
|
PROPOSED CREDIT LIMIT
|
:
|
USD1,000
|
|
|
|
|
HISTORY / BACKGROUND
The SC is an exempt private company which is
allowed to have a minimum of two and a maximum of twenty shareholders and all
the shareholders must be individuals. An exempt company is a type of private
limited company. As a private limited company, the SC must have at least two
directors. A private limited company is a separate legal entity from its
shareholders. As a separate legal entity, the SC is capable of owning assets,
entering into contracts, suing or be sued by other companies. The SC is
governed by the Companies Act, 1965 and must file in its annual return. The
SC need not file in its financial statements but it has to file in a document
duly signed by its director in charge of its finance, the secretary and its
auditor stating that the SC is able to meet all its obligations as and when
they fall due. Although the SC is not required to file in its financial
statements, it also has to prepare its financial account which must be
presented at the Annual General Meeting.
The SC is principally engaged in the (as a / as an) manufacturing of furniture.
The SC is not listed on Bursa Malaysia (Malaysia Stock Exchange).
The major shareholder(s) of the SC are
shown as follows :
Name
|
Address
|
IC/PP/Loc No
|
Shareholding
|
|
MR. ANG TUN BAN +
|
102, PERMATANG TENGAH, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
700731-07-5311
A1593971
|
127,500.00
|
|
MS. ANG AH POO +
|
102, PERMATANG TENGAH, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
660807-07-5606
A0460047
|
72,500.00
|
|
MS. LOK FONG YUEN +
|
102, PERMATANG TENGAH, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
710415-07-5554
A1914118
|
50,000.00
|
|
|
|
|
---------------
|
|
|
|
|
250,000.00
|
|
|
|
|
============
|
+ Also Director
DIRECTORS
DIRECTOR 1
|
Name Of Subject
|
:
|
MS. LOK FONG YUEN
|
|
Address
|
:
|
102, PERMATANG TENGAH, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
A1914118
|
|
New IC No
|
:
|
710415-07-5554
|
|
Date of Birth
|
:
|
15/04/1971
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
23/09/2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 2
|
Name Of Subject
|
:
|
MS. ANG AH POO
|
|
Address
|
:
|
102, PERMATANG TENGAH, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
A0460047
|
|
New IC No
|
:
|
660807-07-5606
|
|
Date of Birth
|
:
|
07/08/1966
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
23/09/2003
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DIRECTOR 3
|
Name Of Subject
|
:
|
MR. ANG TUN BAN
|
|
Address
|
:
|
102, PERMATANG TENGAH, 13000 BUTTERWORTH, PULAU PINANG, MALAYSIA.
|
|
IC / PP No
|
:
|
A1593971
|
|
New IC No
|
:
|
700731-07-5311
|
|
Date of Birth
|
:
|
31/07/1970
|
|
|
|
|
|
Nationality
|
:
|
MALAYSIAN CHINESE
|
|
Date of Appointment
|
:
|
27/11/2006
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MANAGEMENT
|
1)
|
Name of Subject
|
:
|
ANG TOON ONG
|
|
|
Position
|
:
|
CEO
|
|
|
|
|
|
|
2)
|
Name of Subject
|
:
|
KHOO
|
|
|
Position
|
:
|
HUMAN RESOURCE MANAGER
|
|
|
|
|
|
AUDITOR
|
Auditor
|
:
|
YEE CHOON KONG & CO
|
|
Auditor' Address
|
:
|
30-2, LORONG 6A/91, TAMAN SHAMELIN PERKASA, 56100 KUALA LUMPUR,
WILAYAH PERSEKUTUAN, MALAYSIA.
|
|
|
|
|
COMPANY SECRETARIES
|
1)
|
Company Secretary
|
:
|
MS. NG MEE LAN
|
|
|
IC / PP No
|
:
|
A2288876
|
|
|
New IC No
|
:
|
720909-08-6092
|
|
|
Address
|
:
|
12, TINGKAT BAWAL 4, KIMSAR GARDEN, 13700 PERAI, PULAU PINANG,
MALAYSIA.
|
BANKING
Banking relations are maintained principally with :
|
1)
|
Name
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
The SC enjoys normal banking routine with above mentioned banker(s).
The SC has bank charges with above mentioned banker(s).
|
ENCUMBRANCE (S)
ENCUMBRANCE 1
|
Date of Creation
|
:
|
22/12/2005
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM220,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 1 In The Register of Charges
|
ENCUMBRANCE 2
|
Date of Creation
|
:
|
22/12/2005
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM410,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 2 In The Register of Charges
|
ENCUMBRANCE 3
|
Date of Creation
|
:
|
14/03/2007
|
|
Description Of Charge
|
:
|
N/A
|
|
Amount Secured
|
:
|
RM360,000.00
|
|
Description Of Property Affected
|
:
|
N/A
|
|
Name & Address Of Chargee
|
:
|
PUBLIC BANK BHD
|
|
|
|
|
|
|
|
|
|
Form 40 Dated
|
|
Registered and Numbered 3 In The Register of Charges
|
LEGAL CHECK AGAINST SC
* A check has been conducted in our databank againt the SC whether the
subject has been involved in any litigation. Our databank consists of 99% of the
wound up companies in Malaysia.
No legal action was found in our databank.
No winding up petition was found in our databank.
DEFAULTER CHECK AGAINST SC
* We have checked through the SC in our defaulters' database which comprised
of debtors that have been blacklisted by our customers and debtors that have
been placed or assigned to us for collection since 1990. Information was
provided by third party where the debt amount can be disputed. Please check
with creditors for confirmation as alleged debts may have been paid since
recorded or are being disputed.
No blacklisted record & debt collection case was found in our defaulters'
databank.
PAYMENT RECORD
|
SOURCES OF RAW MATERIALS:
|
|
|
Local
|
:
|
YES
|
Percentage
|
:
|
64%
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
34%
|
|
Import Countries
|
:
|
THAILAND,CHINA
|
CLIENTELE
|
Local
|
:
|
YES
|
Percentage
|
:
|
4%
|
|
Domestic Markets
|
:
|
MALAYSIA
|
|
Overseas
|
:
|
YES
|
Percentage
|
:
|
96%
|
|
Export Market
|
:
|
FRANCE, BELGIUM, NETHERLANDS, CYPRUS,
SENEGAL
|
|
Credit Term
|
:
|
30 - 90 DAYS
|
|
|
|
|
|
|
|
|
Payment Mode
|
:
|
CHEQUES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATIONS
|
Products manufactured
|
:
|
|
|
|
|
|
|
Brand Name
|
:
|
AWANA SOFA
|
|
|
|
|
|
Competitor(s)
|
:
|
BAN LENG FIBRE
SDN BHD
CIVIC TAI MANUFACTURING SDN BHD
EVERFINE POLYESTER INDUSTRIES SDN BHD
SUTRASEGI SDN BHD
U.D. PANELFORM SDN BHD
|
|
|
|
|
|
Member(s) / Affiliate(s)
|
:
|
MALAYSIA EXTERNAL TRADE DEVELOPMENT CORPORATION (MATRADE)MALAYSIA
FURNITURE INDUSTRY
|
|
|
|
|
|
Total Number of Employees:
|
|
YEAR
|
2011
|
|
|
|
|
GROUP
|
N/A
|
|
|
|
|
|
|
|
|
|
COMPANY
|
100
|
|
|
|
|
|
|
|
|
Other Information:
The SC is principally engaged in the (as a / as an) manufacturing of
furniture.
The SC is a well-known sofa manufacturer and exporter in Malaysia.
The SC provides high quality leather furniture and other accessories for its
customers. All of its leather furniture is made from the finest leather and
with high quality workmanship.
The SC has its own factory in Penang.
PROJECTS
No projects found in our databank
RECENT DEVELOPMENT
We have checked with the Malaysian National News Agency's (BERNAMA)database,
but no latest development was noted in our investigation.
CURRENT INVESTIGATION
Latest fresh investigations
carried out on the SC indicated that :
|
Telephone Number Provided By Client
|
:
|
043247362
|
|
Current Telephone Number
|
:
|
04-3567437 / 3566437
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Address Provided by Client
|
:
|
1777, JALAN ONG YI HOW, 13400, BUTTERWORTH, PULAU PINANG.
|
|
Current Address
|
:
|
NO.912, JALAN PEKAN DARAT,, 13800 BUTTERWORTH, PULAU PINANG,
MALAYSIA.
|
|
Match
|
:
|
NO
|
|
|
|
|
|
Latest Financial Accounts
|
:
|
NO
|
Other Investigations
We spoke with
Miss Khoo from HR Department and she provided some information on the
SC.
Address and phone number provided by client belong to the SC's factory.
FINANCIAL COMMENTS
The SC is a private exempt company which
does not need to file in its accounts with the Registrar of Companies for the
information of the public. Therefore, we are not able to comment on the SC's
financial performance.
ECONOMIC / INDUSTRY OUTLOOK
|
Major Economic Indicators:
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Population ( Million)
|
27.17
|
27.73
|
28.31
|
28.88
|
29.13
|
|
Gross Domestic Products ( % )
|
6.3
|
4.6
|
<0.5>
|
6.9
|
5.8
|
|
Domestic Demand ( % )
|
9.0
|
6.9
|
2.9
|
4.6
|
4.8
|
|
Private Expenditure ( % )
|
8.6
|
7.1
|
<2.7>
|
8.1
|
7.0
|
|
Consumption ( % )
|
9.0
|
8.4
|
0.7
|
6.7
|
6.3
|
|
Investment ( % )
|
7.1
|
1.5
|
<17.2>
|
15.2
|
10.2
|
|
Public Expenditure ( % )
|
10.1
|
6.5
|
5.2
|
3.8
|
2.8
|
|
Consumption ( % )
|
10.8
|
11.6
|
3.1
|
0.2
|
4.6
|
|
Investment ( % )
|
9.3
|
0.7
|
8.0
|
8.3
|
0.6
|
|
|
|
|
|
|
|
|
Balance of Trade ( MYR Million )
|
100,340
|
129,563
|
89,650
|
118,356
|
116,058
|
|
Government Finance ( MYR Million )
|
<19,948>
|
<34,462>
|
<28,450>
|
<40,482>
|
-
|
|
Government Finance to GDP / Fiscal Deficit ( % )
|
<3.2>
|
<4.8>
|
<4.8>
|
<5.6>
|
<5.4>
|
|
Inflation ( % Change in Composite CPI)
|
2.0
|
<3.3>
|
<5.2>
|
5.1
|
-
|
|
Unemployment Rate
|
3.2
|
3.7
|
4.5
|
3.9
|
-
|
|
|
|
|
|
|
|
|
Net International Reserves ( MYR Billion )
|
336
|
388
|
331
|
394
|
-
|
|
Average Risk-Weighted Capital Adequacy Ratio ( % )
|
3.04
|
1.91
|
2.87
|
2.20
|
-
|
|
Average 3 Months of Non-performing Loans ( % )
|
13.30
|
13.24
|
11.08
|
15.30
|
-
|
|
Average Base Lending Rate ( % )
|
6.72
|
6.72
|
5.53
|
5.70
|
-
|
|
Business Loans Disbursed( % )
|
9.1
|
11.6
|
10.5
|
14.7
|
-
|
|
Foreign Investment ( MYR Million )
|
33,426.0
|
23,261.4
|
22,156.8
|
22,517.9
|
-
|
|
Consumer Loans ( % )
|
-
|
-
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Companies ( No. )
|
43,337
|
41,599
|
41,578
|
-
|
-
|
|
Registration of New Companies ( % )
|
13.2
|
<4.0>
|
<0.1>
|
-
|
-
|
|
Liquidation of Companies ( No. )
|
22,629
|
27,992
|
39,075
|
-
|
-
|
|
Liquidation of Companies ( % )
|
161.5
|
23.7
|
39.6
|
-
|
-
|
|
|
|
|
|
|
|
|
Registration of New Business ( No. )
|
227,410
|
269,866
|
312,581
|
-
|
-
|
|
Registration of New Business ( % )
|
-
|
-
|
-
|
-
|
-
|
|
Business Dissolved ( No. )
|
20,431
|
18,885
|
19,345
|
-
|
-
|
|
Business Dissolved ( % )
|
<61.4>
|
<7.6>
|
2.4
|
-
|
-
|
|
|
|
|
|
|
|
|
Sales of New Passenger Cars (' 000 Unit )
|
442.9
|
497.5
|
319.4
|
369.7
|
-
|
|
Cellular Phone Subscribers ( Million )
|
23.3
|
25.1
|
30.1
|
32.8
|
-
|
|
Tourist Arrival ( Million Persons )
|
20.9
|
21.5
|
23.6
|
24.0
|
25.0
|
|
Hotel Occupancy Rate ( % )
|
70
|
68
|
58
|
63
|
-
|
|
|
|
|
|
|
|
|
Credit Cards Spending ( % )
|
20.1
|
17.1
|
12.8
|
15.1
|
-
|
|
Bad Cheque Offenders (No.)
|
30,004
|
34,834
|
-
|
-
|
-
|
|
Individual Bankruptcy ( No.)
|
13,238
|
13,907
|
-
|
-
|
-
|
|
Individual Bankruptcy ( % )
|
<2.6>
|
5.1
|
-
|
-
|
-
|
|
|
|
|
|
|
|
|
INDUSTRIES ( % of Growth ):
|
2007
|
2008
|
2009
|
2010*
|
2011**
|
|
|
|
|
|
|
|
|
Agriculture
|
3.1
|
3.6
|
0.4
|
3.4
|
4.5
|
|
Palm Oil
|
<0.6>
|
7.0
|
<1.1>
|
1.3
|
-
|
|
Rubber
|
1.0
|
<1.1>
|
<19.8>
|
9.9
|
-
|
|
Forestry & Logging
|
2.8
|
<1.5>
|
<5.9>
|
<1.3>
|
-
|
|
Fishing
|
5.2
|
4.0
|
5.5
|
4.1
|
-
|
|
Other Agriculture
|
7.0
|
5.9
|
9.0
|
6.6
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
487.3
|
393.0
|
413.7
|
508.4
|
-
|
|
% of Industry Non-Performing Loans
|
1.1
|
<2.0>
|
1.3
|
2.1
|
-
|
|
|
|
|
|
|
|
|
Mining
|
3.3
|
<0.8>
|
<3.8>
|
1.0
|
2.9
|
|
Oil & Gas
|
2.2
|
12.7
|
2.1
|
4.9
|
-
|
|
Other Mining
|
-
|
-
|
-
|
-
|
-
|
|
Industry Non-performing Loans ( MYR Million )
|
42.2
|
36.0
|
44.2
|
49.7
|
-
|
|
% of Industry Non-performing Loans
|
0.1
|
0.1
|
0.1
|
0.1
|
-
|
|
|
|
|
|
|
|
|
Manufacturing #
|
3.1
|
1.3
|
<9.4>
|
10.8
|
6.7
|
|
Exported-oriented Industries
|
<1.9>
|
2.7
|
<19.0>
|
12.1
|
-
|
|
Electrical & Electronics
|
3.0
|
2.4
|
<30.3>
|
27.4
|
-
|
|
Rubber Products
|
8.0
|
4.2
|
<10.1>
|
25.3
|
-
|
|
Wood Products
|
3.3
|
<6.0>
|
<24.1>
|
19.7
|
-
|
|
Textiles & Apparel
|
<10.1>
|
1.9
|
<19.5>
|
<1.3>
|
-
|
|
Domestic-oriented Industries
|
5.3
|
9.9
|
<9.8>
|
16.3
|
-
|
|
Food, Beverages & Tobacco
|
5.6
|
9.5
|
0.2
|
3.0
|
-
|
|
Chemical & Chemical Products
|
9.2
|
1.4
|
<7.7>
|
20.4
|
-
|
|
Plastic Products
|
<3.6>
|
6.5
|
<9.1>
|
2.4
|
-
|
|
Iron & Steel
|
17.5
|
16.8
|
<32.7>
|
30.0
|
-
|
|
Fabricated Metal Products
|
26.2
|
14.7
|
<2.5>
|
14.9
|
-
|
|
Non-metallic Mineral
|
6.6
|
8.3
|
<15.5>
|
20.2
|
-
|
|
Transport Equipment
|
<19.0>
|
27.1
|
<13.5>
|
36.5
|
-
|
|
Paper & Paper Products
|
14.9
|
8.6
|
<5.0>
|
20.5
|
-
|
|
Crude Oil Refineries
|
8.6
|
7.8
|
0.2
|
<11.4>
|
-
|
|
Industry Non-Performing Loans ( MYR Million )
|
6,366.2
|
5,729.4
|
6,007.3
|
6,217.5
|
-
|
|
% of Industry Non-Performing Loans
|
14.1
|
16.8
|
18.3
|
23.8
|
-
|
|
|
|
|
|
|
|
|
Construction
|
4.6
|
2.1
|
5.8
|
4.9
|
4.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
5,116.7
|
4,149.8
|
3,241.8
|
4,038.5
|
-
|
|
% of Industry Non-Performing Loans
|
11.3
|
12.2
|
9.9
|
10.7
|
-
|
|
|
|
|
|
|
|
|
Services
|
9.7
|
7.3
|
2.6
|
6.5
|
5.3
|
|
Electric, Gas & Water
|
4.6
|
5.0
|
0.4
|
8.5
|
5.6
|
|
Transport, Storage & Communication
|
7.60
|
7.80
|
1.60
|
7.15
|
7.55
|
|
Wholesale, Retail, Hotel & Restaurant
|
11.6
|
10.0
|
2.8
|
4.7
|
5.2
|
|
Finance, Insurance & Real Estate
|
10.7
|
9.2
|
3.8
|
6.0
|
5.2
|
|
Government Services
|
4.6
|
8.6
|
2.0
|
6.7
|
1.9
|
|
Other Services
|
5.0
|
5.9
|
4.4
|
4.2
|
5.4
|
|
Industry Non-Performing Loans ( MYR Million )
|
10,207.8
|
8,281.4
|
6,631.3
|
7,384.6
|
-
|
|
% of Industry Non-Performing Loans
|
22.6
|
24.3
|
20.2
|
25.7
|
-
|
|
* Estimate /
Preliminary
|
|
|
|
|
|
|
** Forecast
|
|
|
|
|
|
|
# Based On
Manufacturing Production Index
(Source : Department of Statistics / Economic Report / Bank Negara Report)
|
INDUSTRY COMMENTS
|
MSIC CODE
|
|
36 : Manufacture of Furniture; Manufacturing n.e.c.
|
|
|
|
|
INDUSTRY :
|
FURNITURE & FIXTURES
|
|
MALAYSIA's 2011 furniture exports are likely to improve by 9% to RM8.7
billion, provided the US dollar stabilises at the current level and
manufacturers are able to secure enough foreign workers at their factories.
The Malaysian Timber Industry Board estimates that furniture exports at
2010 may have touched RM8 billion as manufacturers suffered profit erosion
from a weakening US dollar and insufficient labourers to work on their
clients' orders.
|
|
According to the Malaysian Furniture Industry Council (MFIC), the
government's policy to reduce the country's dependency on foreign workers
is having an adverse impact on furniture production and exports. Furniture
export earnings will decline if there have not enough foreign workers to
work on the orders. Many small and medium enterprises will face shutdown
prospects.
|
|
There was growing demand for Malaysian-made furniture from the US and
Australia, especially now as American consumer spending is showing signs of
recovery and Australians need to refurbish their homes after the big flood.
Traditional markets like the US and Europe tend to favour Malaysia over
low-cost producers like China and Vietnam due to better quality control and
reliable after-sales services.
|
|
Malaysia has not benefited from free trade agreements with Asean as well as
Australia and New Zealand, which came into effect in January 2010.
Singapore and Thailand are enjoying zero tariff on upholstery and wooden
furniture when it is shipped into Australia and New Zealand. Malaysia,
however, is not. These may affect the furniture industry. Malaysian
furniture exporters sell in US dollar. When the ringgit strengthens, their
exports become more expensive. This leads to a fall in demand. In the last
12 months, the ringgit has been strengthening against the dollar. The
profit margins in the furniture export industry are between 3 and 15 per
cent and the order process takes an average of two months.
|
|
Malaysia stands as the world's 10th largest exporter of furniture by sales
volume. The industry's main export markets are the United States, Japan,
Europe, Australia and the Middle East. The local furniture industry will
continue to be a major revenue earner for the country.
|
|
The Malaysian producers and exporters must rebrand themselves to move up
the value chain, to achieve higher levels of performance and
competitiveness and progress from being OEM production towards own design
manufacturing and original brand manufacturing. The Plantation Industries
and Commodities Ministry and the Malaysian Timber Industry Board has drawn
up strategies through the National Timber Industry Policy towards this
direction. The small- and medium-sized enterprises to penetrate countries
in the Middle East, East Asia, Southeast Asia and Africa as an avenue to
improve international trade performance.
|
|
|
|
|
OVERALL INDUSTRY OUTLOOK : Marginal Growth
|
COMMENTS & RECOMMENDATION
|
Incorporated in 2003 as an exempt private company, the SC is
principally engaged in the manufacturing of furniture. Having been in the
industry for 7 years, the SC should have established rapport with its
customers and suppliers to support its growth. Presently, the issued and
paid up capital of the SC standing at RM250,000. Under the control of its
directors, we considered that the SC's business position is much dependent
on their efforts.
|
|
Besides growing locally, the SC's geographical reach has extended from
Malaysia to France, Belgium, Netherland and etc. Currently, exports
comprise approximately 96% of the SC's revenues. Such wide market coverage
has benefited the SC in terms of higher earning and minimised its
commercial risk. However, being an export oriented company the SC is
subjected to certain inherent risk of global economy slowdown, foreign
currencies fluctuations and stiff competition in the international market.
Headed by its CEO, Ang Toon Ong, the SC currently has about 100 staff in
its business operations. The overall management capability of the SC is
average.
|
|
As the SC is registered as an exempt private company, it is not required to
file the financial statements for public review. As such, we are unable to
ascertain its present financial health.
|
|
The SC sources its raw materials locally and internationally. Being
involved in import and export activities, the SC is subjected to the
foreign currency exchange risk and high operating costs which in turn may
impair its profitability.
|
|
The industry has reached its maturity stage and only enjoying a marginal
growth. The steady growth of the country's economy will further enhance the
industry activities. Thus, the SC's future performance is very much depend
on its marketing strategies in order to retain its position in the market.
|
|
In view of the above, we only recommend a small amount of credit be
proceeded to the SC with guarantee.
|
|
|
|
