Plastic exports can hit 10 per cent growth this year

SHAH ALAM: Malaysia’s plastic product exports will be able to hit its 10 per cent growth target this year, following the increasing demand in hightech plastics, particularly in the automotive sector.

Second International Trade and Industry Minister, Datuk Seri Ong Ka Chuan, said the exports amounted to RM3.5 billion during the first quarter of this year.

“There has been a huge demand for modern polymer composite materials and plastics from various sectors, including the aerospace sector,” he said in his opening speech at the Eighth Malaysia Plastic Manufacturers Association (MPMA) International Plastics Conference (MIPC) yesterday.

Ong said last year, Malaysia’s plastic product exports totalled RM13.12 billion, while imports were at RM10 billion.

Investments in the plastic industry in 2016 had also increased to RM1.55 billion from RM911 million in 2015.

He said from 2013 to 2016, the plastic industry saw RM4.5 billion in total approved investments, involving 186 projects.

Meanwhile, MPMA VicePresident, Datuk Noraini Soltan Talib, said the plastic industry registered RM27.32 billion in total sales last year, representing an increase of 10.3 per cent from RM24.77 billion recorded in 2015.

“However, the industry is expected to face numerous challenges, such as labour costs, difficulties associated with employing foreign workers, higher energy cost and increasing negative perception on plastic packaging materials,” she said.

The global plastics market is expected to reach US$654.4 (US$1=RM4.30) billion by 2020, partly supported by the growth of major end-user industries, such as packaging, construction and automotive industries, particularly in the emerging markets.

Themed “Navigating the Future Plastics for the Next Decade”, the conference aimed to provide updates on the challenges, opportunities and prospects in the plastic industry, as well as leading edge technologies and solutions for plastic manufacturers to become globally competitive.

The two-day conference was co-organised by MPMA and Malaysian Investment Development Authority.