The plastics industry in Malaysia is on its growth path despite the challenges posed by the coronavirus pandemic. Forecast has been optimistic, with the Malaysian plastics market projected to register an annual growth of 3% for the period 2021-2026, according to Mordor Intelligence.  Major drivers for growth are sectors such as food and beverage packaging, consumer products, electronics and construction.

According to the report, packaging accounts for the largest application segment in the Malaysian plastics market, with plastics being preferred due to its properties such as better wear and chemical resistance, ease of molding, recyclability,high mechanical strength, etc.Malaysia’s annual per capita plastic packaging consumption is high among all the Southeast Asian countries at 16.78 kg/person. In 2020 alone, total household plastic packaging consumption reached over 520,000 metric tons. A recent report by MarketResearch.com on the Malaysian packaging industry gives optimistic projection citing that the industry is set grow from 17.6 billion units in 2020 to 20.2 billion units by 2025, at a CAGR of 2.9%. Flexible packaging accounts for majority share followed by rigid plastics. It has also been noted that rigid plastic packaging will post the fastest growth during the period 2020-2025 due to the high demand for e-commerce and food delivery services, as well as its ability to meet specific requirements such as being lightweight, durable and economical.

The role of the plastics industry in Malaysia’s economic landscape cannot be undermined. The Malaysian Plastics Manufacturers Association (MPMA), in its virtual conference, cited the importance of plastics in supporting other sectors especially during the COVID-19 outbreak. MPMA president Datuk Lim Kok Boon mentioned that sales of manufactured plastics increased by 23% year-on-year to RM38.68 billion in the first eight months of 2021, with exports of plastic products posting a 21% during the period due to the opening of both domestic and international markets.    

Opportunities for plastic materials producers
Malaysia serves as an ideal production hub for companies producing raw materials and plastic compounds as a growing number of international companies set their sight on this countryto serve as location for their manufacturing operations. Malaysia’s thrivingdomestic downstream plastic processing activities benefit from the presence of a well-developed petrochemical industry that supplies the materials for the plastics industry. World-scale production facilities produce polyethylene (PE), polypropylene (PP), polystyrene (PS), acrylonitrile butadiene styrene (ABS), polyacetal (PA), polyester copolymers, styrene acrylonitrile (SAN) and polybutylene terephthalate (PBT), among others.  

The Transparency Market Research (TMR) estimates that Malaysia’s chemical and petrochemical market is set to expand at a CAGR of 4.2% from 2021-2025 due to demand for petrochemicals and chemicals in several end-use industries.  Sustained high demand for chemicals and petrochemicals in several end-use industries such as food & beverages, pharmaceuticals, and automotive is fuelling the expansion of the petrochemicals and chemicals market in Malaysia in the next few years.  Despite the estimated 5% to 15% decline in foreign direct investment into this industry, companies are redesigning their work processes and enhancing the operations of their plants to alleviate the impact of the COVID-19 pandemic in the country.

Nonetheless, investments into production of plastic materials reflect confidence on Malaysia as an investment hub for plastics production in Southeast Asia as major industry players build their plants or upgrade existing ones.

BASF PETRONAS Chemicals SdnBhd, a joint venture between BASF and PETRONAS Chemicals Group Berhad,announced its intention to expand its annual production capacity of 2-Ethylhexanoic Acid (2-EHA) from 30,000 to 60,000 metric tons by 2024.2-EHA is a chemical intermediate used as a compound in the production of synthetic lubricants as well as oil additives. It is also used in functional fluids like automotive coolants, metal salts for paint dryers, plasticizers, stabilizers, catalysts and other applications in various industries. Apart from the production site in Kuantan, Malaysia, BASF produces 2-EHA at its Verbund site in Ludwigshafen, Germany.

Toray Industries, Inc. has boosted Toray Group worldwide production and distribution capacities of its renown TOYOLAC®Acrylonitrile Butadiene Styrene (ABS) resin transparent grade, through its latest facilities set up at Prai Industrial Park, Penang, Malaysia.The modern plant raised Toray Plastics (Malaysia) Sdn. Berhad’sABS resin production and distribution capacities by 75,000 metric tons, to 425,000 metric tons annually.  Taking into accounts the ABS production output at the Chiba Plant in Japan, Toray Group is now capable of churning out some 497,000 metric tons of ABS to the worldwide markets annually. The Toray Group, which has evolved into a multinational organization with diversified businesses worldwide, operates 8 manufacturing plants in Penang's strategic industrial parks and 1 joint-venture project in Kuantan, Pahang, representing one of the Toray's major investments outside Japan.

KRAIBURG TPE operates its thermoplastic elastomers plant in Malaysia for the Asia Pacific region. It has since expanded its capacity by 35% with additional production line that started operation in 2018 to boost KRAIBURG TPE’s total production capabilities to 60,000 metric tons worldwide.KRAIBURG TPE also expanded its offices and warehouse in Malaysia in tandem with the additional production line to complement its production expansion.

Baerlocher Malaysia represents the Baerlocher group of companies, another leading additive supplier for the plastic industry in Asia, the Pacific Rim and the Middle East.Apart from serving the local markets, over 90% of its products are exported to Indonesia, Bangladesh, Thailand, Vietnam, Philippines, Middle East, Taiwan, South Korea, Pakistan, Sri Lanka, Singapore, Australia and New Zealand.Baerlocher Malaysia manufactures Calcium-based and traditional based PVC stabilizers for rigid plasticized applications like pipe and profile, window, cable, wire, flexible hoses, synthetic leather, flooring, rigid film, packaging, etc.  

At CHINAPLAS 2022, countries in Southeast Asia, such as Malaysia, will be well-represented with many leading companies operating plants in Malaysia being given the opportunities to establish a foothold in the China market while also being able to see state-of-the-art manufacturing technologies and industry-leading materials to boost their efficiency and productivity. For more information, visit www.chinaplasonline.com.

About CHINAPLAS 2022

CHINAPLAS 2022, one of the most prestigious international plastics and rubber trade fairs, will be held at National Convention and Exhibition Center, Hongqiao, Shanghai, PR China from April 25-28, 2022. The show will gather 4,000+ international exhibitors under one roof and welcome visitors from all around the world to grasp business opportunities generated from the economic recovery. To cope with the fast-changing global sourcing conditions without travelling under the pandemic, overseas buyers are now able to connect with thousands of materials and machines suppliers via CHINAPLAS eMarketplace, a smart efficient integrated, and sustainable online sourcing platform which is complementary to the physical show of CHINAPLAS. For more information, please visit: www.chinaplasonline.com

For media inquiries, please contact:
Hong Kong: Ms. Cynthia Lau
Tel: (852) 2516 3583    
Email: Chinaplas.pr@adsale.com.hk
Official Website: www.ChinaplasOnline.com

Report Abuse