Malaysia's plastics industry poised for rising global demand

BUKIT MERTAJAM (June 27, 2013): Malaysia's plastics industry is well-positioned to take advantage of growing demand for plastic parts and components globally, says the Malaysian Plastics Manufacturers Association (MPMA).

Its president Lim Kok Boon said local plastic producers had the advantage of catering to the growing demand as people migrate towards plastics as a material of choice.

"There is a change from aluminum to plastics for packaging as soft packs cost lower, and have a lower carbon footprint, because it is lighter. It is also due to continuous sustainability programmes," he told Bernama here today.

Lim was speaking after launching the MPMA-DOW "Don't Be a Litterbug and 3Rs (reduce, reuse, recycle) Awareness Programme 2013", officiated by Penang Environment, Welfare and Caring Society committee chairman, Phee Boon Poh here.

He said the plastics industry is likely to see a single digit growth this year, despite a shift towards plastics, following the softer global economy.

Besides being used for packaging, Lim said plastic composites are also widely used in aircraft and vehicle production, to enable these products to be lighter and fuel efficient.

Lim said Malaysian plastics manufacturers are expected to benefit from the strong demand, especially from developed countries, which are looking for supply substitutes.

"As the developed countries go deeper into recession, their cost culture will become acute and need to find supply substitutes. Malaysia is able to benefit from this phenomena as we are able to make quality products at a lower cost," he added.

The Malaysian plastics industry registered a total turnover of RM15.94 billion last year, down 1.2% from 2011, due to weaker demand from the export sector.

Meanwhile, Lim said Malaysian companies have invested heavily in machinery, technology and talent to produce quality goods at a lower cost, while exporting to Japan, Australia and Europe, which are looking for cheap products but not compromising on quality.

"The focus is now on quality and corporate social responsibility programmes in taking care of society and the environment," he added.

He said the plastics industry had a multiplier effect on the domestic economy as the vibrant supply chain attracts foreign investors to establish their plants in Malaysia.