Malaysia Plastics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)

Market Overview

The Malaysian plastics market was valued at USD 3,243 million in 2020, and the market is projected to register a CAGR of around 3% during the forecast period (2021-2026).

COVID-19 has negatively affected the economic growth of the country. Due to the COVID-19 outbreak, the area that is likely to be the hardest hit is the construction industry of the country. Due to the increasing cases of COVID-19 cases in Malaysia, the Malaysian Prime Minister in March 2020 imposed the restriction of movement order. This has impacted the growth of the plastics market in various end-user industries in the country.

• Over the shorter period, the major factor driving the growth of the market studied is the rising demand from food and beverage packaging.
• On the flip side, environmental restrictions and unfavorable conditions arising due to the COVID-19 outbreak are expected to hinder the growth of the market studied.
• Rising usage of biodegradable plastics and potential growth in the aerospace sector are expected to offer various opportunities for the growth of the market.

Scope of the Report

Plastics are organic materials, just like wood, paper, or wool. The raw materials used to produce plastics are natural products such as cellulose, coal, natural gas, salt, and, of course, crude oil. Malaysia's plastics market is segmented by type, technology, and application. By type, the market is segmented into traditional plastics, engineering plastics, and bioplastics. By technology, the market is segmented into blow molding, extrusion, injection molding, and other technologies. By application, the market is segmented into packaging, electrical and electronics, building and construction, automotive and transportation, housewares, furniture and bedding, and other applications. For each segment, the market sizing and forecasts have been done on the basis of value (USD million).

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Key Market Trends

Traditional Plastics to Dominate the Market

• Traditional plastics made from petroleum-based raw materials include polyethylene, polypropylene, polystyrene, and polyvinyl chloride.
• Polyethylene is an organic polymer with a variable crystalline structure, made of several monomer subunits called ethylene molecules. It is a thermoplastic, which can be heated to its melting point, cooled, and reheated again without any significant degradation.
• Polyethylene can be processed into all kinds of articles owing to its compatible properties, such as good insulation, strength (unbreakable), resistance toward caustic materials, lightweight, and environment-friendly nature. It is recyclable and can be shaped and molded easily after heating. It can be processed into soft and flexible as well as hard, tough, and strong products.
• Based on the density and molecular weight distribution, the polyethylene compounds are categorized into low-density polyethylene and high-density polyethylene. Polyethylene is one of the most popular plastics in the world, and it is used in everyday appliances, packaging, pipes, toys, medical, and other consumer goods.
• In Malaysia, polyethylene is used as a raw material in the manufacturing of various goods, such as plastic pipes, wires and cable insulation, films, vehicles, construction products, and other goods.
• Some of the manufacturers of polyethylene in the country include BP Plastics Holding Bhd, Commercial Plastic Industries(CPI), and Lotte Chemical Titan Holding Berhad, among others.
• Polypropylene is a thermoplastic polymer made up of a combination of propylene monomers through the polymerization of propylene. It is produced through the distillation of hydrocarbon fuels into lighter groups, known as “fractions,” which are combined with other catalysts to produce plastics.
• Polypropylene can be manufactured into a living hinge, i.e., thin plastics that can bend without breaking. These can also be easily copolymerized with other polymers, such as polyethylene. This allows the application of propylene in the production of trays, cups, dish wash-safe plates, toys, opaque to-go containers, and other products.
• Owing to the properties of polypropylene, such as toughness, high heat and chemical resistance, translucence, insulation, integral hinge property, and semi-rigidity, it has found its application in the production of various products (such as carpets, containers, bailing twine, clothing, biaxial oriented film, low-density packaging, washing machine drums, bottle caps, medical components, textiles, and sailing dinghies).
• PVC is strong and lightweight, durable to weathering, rotting, chemical corrosion, and abrasion, versatile, and easy to use, as it can be cut, shaped, welded, and joined in any style. Such characteristics make it an ideal option for many applications, such as pipes, windows, flooring, and roofing.
• Therefore, these traditional plastics are widely used in automotive, packaging, and construction. In Malaysia, construction activity has been increasing and is the largest contributor to the country's GDP. This is expected to drive the country's demand for plastics.

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