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.
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 country to serve as location for their manufacturing operations. Malaysia’s thriving domestic 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.
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