The plastic processing plants in Malaysia, see their future in selling high-quality products, such as modern packaging materials and technical parts. This must be invested in new equipment, which is difficult given the tight financial situation. In addition to set higher prices for primary products and electricity in the industry. In production and exporters of plastics and synthetic resins characterized in 2010 from a recovery.

Malaysia\'s plastics industry includes over 1,450 manufacturers with 85,000 employees. The majority of the company is considered a small to medium, and many are owner-managed. Only just over half are found mainly in local hands. The industry posted 2009 sales of 14.6 billion ringgit (RM; about 3.0 billion euros, 1 euro = 4.91 RM - annual average 2009) and contributes approximately 3% of total turnover in the manufacturing sector. It is powered by an advanced petrochemical industry with raw materials.

During 2009 to cope with a decline of almost 10% was in 2010, the signs of growth. Especially for export, the outlook has been estimated by the Malaysian Plastics Manufacturers Association (MPMA) good. For the development of plastics demand at home and abroad are mainly due to the highly cyclical consumer electronics, automotive and construction industry. In particular, the first two had taken the difficult global recession. The major exports of films and packaging in the industrial countries had fallen to crisis.

Main features of the Malaysian plastics industry in billions of RM,% change year on year (Source: MPMA) *)

The industry is highly export-dependent. In the past decade, annual growth in exports 15-20% are recorded. The share of exports in the turnover increased from 40% in the late 90\'s to last nearly 60%. Despite the recovery in demand, particularly in the field of food packaging in the second Half of 2009 decreased exports of plastic products for the full year by 10.8% to 8.3 billion RM. These were imports valued at 5 billion to RM, which failed to 9.3% lower than last year. Primarily packaging materials were exported, for example, flexible films, sheets, bags, bottles and containers.

The main customers are the European Union, Japan and the PRC. Industry insiders expect the future especially from the Asian region a dynamic demand, the debt crisis in the EU could however provide for restraint. With the implementation of the Asean Free Trade Area (AFTA) will open up new markets for Malaysian plastics exporters in the participating countries, which in turn will also benefit from the reduction in import duties to zero since 1.1.10. In total, the MPMA greater opportunities than risks for the producers, even when the import pressure especially for synthetic resins should initially be high. A challenge for the producers themselves could develop prior to price increases for gas, which comes both as a fuel and as raw material for raw materials used.

The Malaysian factories made in 2009 about 37% of their goods in film extrusion and 35% with injection molding. The extrusion of pipes and profiles made 7% and 6% from the blow molding manufacturing. The main segments of the plastics industry are the manufacturers of packaging (40%), components for electrical / electronic industry (23%) and household goods (22%) and the automotive industry (9%). The rest of the production attributable to the construction industry and agriculture.

Growth opportunities are mainly seen in the field of packaging, including those with multi-layer material as well as in packaging for convenience foods and those that increase the shelf life of foods. The trend for weight saving in the automotive industry provides increasing demand for high-quality plastic parts. A growing challenge is setting new standards concerning environmental protection, safety and health, to be followed by the industry.

At a low level in the view of the MPMA the R & D and design efforts. To be able to develop, produce higher quality goods, and sell under its own brand, firms must also invest in their equipment. Only then will the long-term holdings are against competition from low wage countries. lacks some of the smaller family farms are often in capital and market experience to implement the modernization. Connoisseur of the industrial sector therefore see a need for consolidation in the local market - for example through mergers - as well as the need to cooperate with multinational companies.

The authorized investment volume in 2009 to 771 million at RM, but registered by the competent authority Malaysian Industrial Development Authority (MIDA) with 42 individual projects about a third less than last year. About 80% will flow into the packaging segment (production of flexible films, sheets and bags or blow-molded bottles and containers). The great majority of the investments it was new projects, foreign engagement standing for nearly 70% of the total.

The consumption of synthetic resins in 2009 fell by around 4% to 1.7 million tonnes, as the user industries are electronics and automotive less inquired. The production declined to 1.8 million tonnes, while exports were virtually unchanged at 0.8 million tonnes. A major problem for the industry are the rising prices of synthetic resin, according to the MPMA have these last four years more than doubled. The energy prices have risen, and further increases are expected. Main types of resins used in Malaysia are polyethylene, polypropylene, polyvinyl chloride and polystyrene. Engineering plastics such as polyamides and polycarbonates must however still largely imported.

The main producers of synthetic resins include BASF, Eastman Chemicals, Industrial Resins, Malayan Electro-Chemical Industry (MECI), Petlin Malaysia, Malaysia Petrochemicals, Polyethylene Malaysia, Malaysia Polypropylene, Titanium PP Polymers, Toray Plastics and Vinyl Chloride Malaysia. Usually it is a joint venture of international chemical companies, national oil and gas company Petronas.

Source: www.plasticker.com

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