PETALING JAYA: Poh Huat Resources Holdings Bhd
expects the volatility of the US dollar against most currencies, including the ringgit, will bring more uncertainties to the group.
In a filing with Bursa Malaysia, the furniture company said the recent turn of events would have a substantial impact on the furniture sector.
“We will continue to stay informed about US trade policies and adjust strategies accordingly to navigate potential challenges and identify opportunities.
“Our close working relationship with our key customers will help us better understand market trends and development and anticipate impact of external factors on our operations and business sustainability.
For the first quarter ended Jan 31, 2025, Poh Huat’s net profit dipped to RM9.48mil from RM10.30mil in the previous corresponding quarter, due to higher material costs and factory overheads amid lower capacity utilisation in its Vietnamese factories during the period. Revenue in the first quarter grew to RM136.25mil from RM131.14mil a year earlier.
Poh Huat said this was mainly due to the higher orders and shipment of office furniture from its Malaysian operations, as sentiments amongst US businesses remained strong following the US election.
“Shipment of home furniture from our Vietnam factories were slightly lower as home furnishing spendings amongst American families remain subdued following the pandemic peak spending on household finishing in 2022 and 2023.”
Poh Huat said the furniture industry in the United States is navigating a complex landscape shaped by changing government policies, housing market fluctuations, consumer behaviour shifts, and broader economic factors.
“The change in the US government policies under President Donald Trump’s administration has brought about more uncertainties, both in the global and the US economy.
“The latest set of tariffs against key trading partners may result in a host of retaliatory actions against the United States, leading to weaker gross domestic product growth, higher unemployment, higher interest rates, and higher inflation in the United States.”
Additionally, Poh Huat said the US housing sector, which is already in a prolonged downturn, may take longer to recover, leading to lower establishment of new households and hence spending on furniture and household items.
