Plastic Materials and Resins

 

Malaysia

Overview                                                                                          

 

                                        2004 (Actual)            2005 (Actual)            2006* (Estimated)

Total Market Size             4210                          4721                          5430

Total Local Production     3900                          4485                          5158

Total Exports                   1715                          2134                          2454

Total Imports                   2025                          2370                          2726

Imports from the U.S.        152                            204                            245

            (Source: World Trade Atlas, Malaysia Plastics Manufacturers Association)

            Figures given in U.S. dollars, in millions.  Exchange rate: U.S. $1= RM 3.66 (Ringgit Malaysia)

* (Estimated: projected growth for total local production, total exports, total imports, imports from U.S. are 15%, 15%, 15% and 20% respectively)

 

·           In the 1990s the government of Malaysia used its large availability of natural gas resources to develop a petrochemical industry, and has attracted investments from Japan, the U.S. and Germany to build large resins production facilities.  However, Malaysia remains a net importer of plastic resins, despite the large production capacity of local producers.

 

·           In 2005, Malaysia’s main suppliers were Singapore, Japan, the U.S., and Thailand, with market shares of 25%, 17%, 9%, and 7% respectively.  The U.S. share equaled U.S. $204 million, an increase of 34% compared to 2004.

 

·           Main resin imports from the U.S. were: polyacetals (U.S. $ 70 million); polyethylene (U.S. $ 46 million); polyamides (U.S. $ 20 million); and petroleum resins (U.S. $ 13 million).

 

·           U.S. resins face severe competition from Singapore, Japan, and other Asian countries such as Thailand and Korea.  In recent years, Malaysia’s import of plastic resins from Asian and ASEAN countries has increased dramatically due to highly competitive prices and the privilege of low tariff rates enjoyed when trading within the ASEAN region under the ASEAN Free Trade Area (AFTA) agreement.

 

Best Prospects/Services                                                              

 

·            Engineering Resins - Engineering resins remain the best prospect sector for U.S. suppliers since they have gained a strong reputation for product quality and advanced technology.  Prices of engineering resins are less volatile compared to commodity resins, which makes it more attractive to traders.

 

Opportunities                                                                           

 

·            Opportunities for engineering resins are in the production of automotive parts, electrical and electronic parts and telecommunications components.

 

 

Resources                                                  

 

For more information about this sector, please read the CS market research entitled Plastic Materials and Resins available in our market research database.  See “Chapter 9: “Market Research” for instructions about accessing the report.

 

Malaysian Plastics Manufacturers Association (MPMA): www.mpma.org.my

Plastics Resins Producers Group (PRPG): www.mpa.org.my

 

For more information contact Commercial Specialist Vivian How.