By Jeeva Arulampalam
Published: 2008/11/05
MALAYSIA'S plastics industry is expected to grow between five and eight per cent this year, driven by export sales.
Last year, it posted revenue of RM15.7 billion.
In the six months ended June 30 2008, revenue increased 8.3 per cent to RM7.96 billion compared with RM7.35 billion in the previous corresponding period.
"A lot of our subsequent growth will depend on the next two months and how fast it will drop because of the current global economic slowdown," Malaysian Plastics Manufacturers Association (MPMA) president Lim Kok Boon told reporters after the launch of the Fourth MPMA International Plastics Conference by Deputy Science, Technology and Innovation Minister Fadillah Yusof in Kuala Lumpur yesterday.
Export revenue was up 18 per cent to RM4.6 billion in the first six months of this year compared with RM3.9 billion a year ago.
With exports accounting for some 57 per cent of total revenue, demand for plastics will hold as producers need cost-efficient and cheaper products, Lim said.
"For instance, plastics can be used to make car parts, which will result in the car being lighter and having improved fuel efficiency."
Less fuel consumption also means that carbon emission is reduced, Lim added.
Key export markets for Malaysia's plastics industry include Japan, the US, Europe, Australia, Singapore, Thailand and the Philippines.
Lim also urged plastics manufacturers to move from being just original equipment manufacturers to designing and branding their own products.
"When you create your own design and brand, you can compete overseas and enjoy higher margins," he said.
Lim called on local manufacturers to work with foreign partners to produce complete products and build successful brand names.
There is also the Malaysian Plastic Design Centre, a unit of the MPMA, which provides training on how to design and purchase the software needed for designing.
The MPMA has some 900 members in the country.
- Business Time -
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