In Malaysia there are an estimated 750 furniture manufacturing and export companies, with another 1,500 smaller concerns playing a supporting role. Under the government’s second Master Plan (1996-2005), the Malaysian Furniture industry has been identified as a "target industry" and is now one of the new growth sectors of the economy. In 2000, the Malaysian Industrial Development Authority gave the go ahead to a total of 34 furniture and fixtures investment projects and 21 wood investment projects. Collectively, these investments are worth 356.5 million Malaysian ringgit.

While there has been a growth slowdown in the US over the period 2001-2002, it still remains the engine of international furniture trade like it has been for the last ten years. This is because demand for imported furniture by the American consumer still remains for reasons that remain largely valid at present: primarily the evolution of taste in the direction of modern european design, but also a special ability of foreign suppliers to provide products well suited to the changing fashion, at highly competitive prices.

The Malaysian furniture industry has used for a long time the productive model designs suggested by their foreign buyers. Over the years this knowledge has facilitated the production of western-style products and demand for local products has constantly increased.

Wooden furniture production is the mainstay of the Malaysian furniture industry. It can be broken down into three main categories:

Rubber wood furniture - 65%

This has been a major contributing factor to Malaysia’s success in the furniture industry. Contributing 80% of wood furniture exports, constant supply is ensured by large scale planting and replanting of rubber trees.

Panel based furniture - 20%

Hardwood furniture - 15%

In 2001 Malaysia exported US$0.99 billion worth of wooded furniture to over 144 markets worldwide. Main importers of Malaysian furniture are the US, the UK, Japan and Singapore. To further expand exports to highly developed countries, over US$ 70 million is invested annually in new technologies and skill enhancing measures.