In 2008, the KL & Selangor Furniture Association (KSFA) endeavoured to develop a cluster concept development project, with the ultimate objective to integrate the currently scattered furniture industry in Kuala Lumpur and Selangor to form an integrated furniture business centre
Through professional planning and centralized management, it will reduce the wastage of resources and facilitate centralized procurement to both domestic and foreign buyers. Therefore, over the years, KSFA has been working hard to find a piece of industrial land for a comprehensive development estate by integrating upstream and downstream of the furniture industry.
For decades, furniture factory legality, the third biggest problem affecting Malaysia furniture industry players after labour and raw material, is a worrisome issue which needs to be addressed.
As such, the KL & Selangor Furniture Association (KSFA) has teamed up with B&G Property and MJD Land, to launch a furniture industrial development in Sungai Buaya, Selangor, tentatively to be known as the International Furniture City @ Selangor (SIFC) – Sungai Buaya. With the development of SIFC, the furniture factory legality issue can be solved as industry players have an option to relocate their factories to SIFC.
According to KSFA President Dato Eric Lee Kong Sim, the furniture industry has played an important role in the socio-economic development of Malaysia for decades. Malaysia’s furniture export is ranked 12th in the world and it brought in earning in excess of RM 9.8 billion for the country in 2018. Malaysia furniture is purely a “Made in Malaysia” product. Furniture makers utilize the local raw materials and apply them in local production to further raise the value of it while contributing to the country’s economic growth.
The SIFC will be developed on a 700-acre land in Sungai Buaya, approximately 35 kilometres to the heart of Kuala Lumpur via the North-South Expressway. The SIFC development will be developed in 2 phases.
KSFA is currently focusing on selling the first phase of the SIFC development which comprises of 255 industrial lots on a 290-acre land. The development of SIFC will be a guarded community with security features such as anti-climb perimeter fencing, boom gate and 24-hour security patrolling service. The development will also boast a 66-feet wide internal road and lush greenery. There is also a provision within the development for workers dormitory to be built providing a standard, comfortable accommodation for the workers.
SIFC Management Sdn Bhd, a subsidiary of KSFA, has been given the responsibility to develop and manage the land as well as to promote it among the furniture players. The selling price of the industrial lot is set at RM38 psf. KSFA is confident in securing 80 percent sales of Phase 1 from its members.
KSFA estimated that it will take approximately one year to enter into Sale and Purchase Agreement with the buyer and to deliver the vacant possession of the land complete with infrastructure by Q4 of 2022.
The benefits of SIFC are as follows:
- To create more job opportunities for general and professionals;
- To reduce the issue of illegal factories in Selangor;
- To contribute to economic growth in export;
- To reduce import while escalating local consumes by upgrading the quality of locally made furniture;
- To produce more local furniture designers by establishing a Design Institute;
- To develop Bumiputra entrepreneurs to increase the Bumiputra participation in the furniture industry.
KSFA conservatively estimates that the first phase of the development on a 290-acre piece of land can create approximately 8,000 to 9,000 jobs, with a gross development value of approximately RM1 billion, and an annual output of approximately RM3 billion.
KSFA hopes to have smooth progress on the SIFC development in order to nurture well-trained workers for the industry, to enhance the furniture market competitiveness and to promote the Malaysian Furniture internationally.