Malaysia’s chemical and petrochemical industry poised for recovery in 2010

15-Jul-10

Malaysia’s chemical and petrochemical industry is poised for recovery this year based on better overall performance in the first five months, as per International Trade and Industry Minister Datuk Seri Mustapa Mohamed. The production index of chemicals and chemical products expanded by 23% to 117.5, sales value recorded a 25.2% increase from RM54.1 billion to RM67.7 billion for the January-May period. Exports of chemicals and chemical products, and petroleum products also recorded increases of 37.8% and 58.2% respectively. The industry is poised for a recovery in view of the rise in global energy demand and economic growth. With the increase in global energy demand, the contribution of the oil and gas industry is expected to rise by 20% over the next five years to reach RM81.9 bln in 2015 with the downstream activities contributing RM39.8 bln. The industry is set for further development and growth with world-class infrastructure across the value chain, such as offshore rigs, the three integrated petrochemical zones namely in Terengganu, Pahang and Johor Baharu as well as a liquefied natural gas production site in Sarawak. Currently, there are 42 companies in operation, producing petrochemicals with a combined capacity of 1.2 mln tpa and 20 companies producing various types of lubricating oils.