NTPM to focus on product innovation
GEORGE TOWN: NTPM Holdings Bhd expects to face challenges such as material pricing volatility, high shipping charges, upward labour cost pressure and foreign exchange fluctuations in financial year 2023 (FY23).
According to NTPM in its 2022 annual report, the global economic condition remains uncertain.
“In FY23, the group forecasts unpredictable material price changes, a surge in logistic and labour costs and impact of foreign exchange rates fluctuations,” it said.
The ongoing Russia-ukraine conflict will exacerbate the situation.
“Despite such challenges, the demand for paper and personal care-related products continues to remain relatively stable.
“To achieve sustainable, profitable growth, we will continue focusing on product innovation and strive to stand out by optimising our product mix to increase the group’s brand competitiveness and profit margin.
“The group will also expand the personal care segment in Malaysia, Thailand, and Vietnam and establish a new marketing position for recycled grade by using eco-friendly products,” it said.
It will also improve its competitiveness and market presence by continuing to expand and improve its distribution channel within and outside Malaysia, it added.
For its personal care segment, the group sees room for further growth in the sanitary napkin market in Malaysia although competition has intensified lately.
It said international competitors have cut prices to expand their market share, resulting in intense price competition.
“In the face of the increasingly fierce market competition, the group has continued to upgrade and launch new innovative sanitary napkins through flexible, cost-effective and original equipment manufacturers to capitalise on this growing demand.
“The group will also launch its other personal care products in Thailand and Vietnam as part of its regionalisation plan,” it added.
On its tissue paper segment, NTPM said the group’s annual production capacity for tissue paper in Malaysia and Vietnam reached 160,000 tonnes in FY22.
“The optimisation of production capacity will allow the group to tap market opportunities locally and overseas.
“On top of driving market growth, the group will continue to capitalise on its leading position in Malaysia in executing its marketing strategy and increasing its market presence in other primary markets, especially Vietnam, where it will look out for new retail touchpoints and product lines,” it said.
NTPM said the group is well positioned to capitalise on the growing demand for eco-friendly tissue paper.
“We will continue to expand our sustainable recycled grade manufacturing capacity, in line with our aspiration to become a green company specialising in converting wastes into valuable products.
“We hope to reap the benefits from the expected increase in demand for environment-friendly products in the coming years,” it added.