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Malaysian petrochemicals market estimated at RM 28 billion in 2012

Press Release   •   Aug 28, 2012 10:52 BST

The Malaysian petrochemicals market reached a capacity of 11.939 million metric tonnes per annum (MMTPA) in 2011, increasing at a compound annual growth rate (CAGR) of 5.3% from 6.750 MMTPA in 2000. The capacity is expected to remain at this level through to 2016.

A wide range of petrochemicals are produced in Malaysia, such as olefins, polyolefin, aromatics, ethylene oxides, glycols, oxo-alcohols, exthoxylates, acrylic acids, phthalic anhydride, acetic acid, styrene monomer, polystyrene, ethylbenzene, vinyl chloride monomer and polyvinyl chloride.

The petrochemical industry is an important sector in Malaysia, with investments estimated at RM 28 billion in 2012. With 29 petrochemical plants throughout Malaysia producing 39 types of petrochemical products, the growth of the industry has transformed Malaysia from a net importer to exporter of major petrochemical products.

The rapid growth of the industry is mainly attributed to the availability of oil and gas as feedstock, a well-developed infrastructure, a strong base of supporting services, the country's cost competitiveness, as well as Malaysia's strategic location within ASEAN and its close proximity to major markets in the Far East.

In the Malaysia petrochemicals industry, most of the active petrochemical complexes are situated in Terengganu. In 2011, it accounted for 33.3% of the total number of petrochemical complexes in the country.

It is followed by Johor, Negeri Pahang and Negeri Sembilan, which accounted for 20.8%, 16.7% and 8.3% respectively of total number of complexes in the country. Other states accounted for remaining 20.9% of total number of petrochemical complexes in the country.

The presence of world renowned petrochemical companies, such as Dow Chemical, BP, Shell, BASF, Eastman Chemicals, Toray, Mitsubishi, Idemitsu, Polyplastics, Kaneka, Dairen and Honam speaks clearly of Malaysia's potential as an investment location for petrochemical industries. Most of these companies are working in collaboration with Malaysia's national petroleum company, PETRONAS.

All in all, 43 companies, with a total capacity of 12.9 million MTPA are in the production of petrochemicals, which got investments to the amount of RM 58 billion in 2010.

The long term reliability and security of gas supply ensures the sustainable development of the Malaysian petrochemical industry.

For more information on the Malaysian petrochemicals market, see the latest research: Malaysian Petrochemicals Market Report

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