The Growth of Chemicals Industry in Malaysia November 24, 2021
Chemical companies nowadays are facing slower global economic growth, trade disruptions and weakened end-market demand in key industries such as automotive, manufacturing and construction. The general drop in demand, combined with continuous commodity chemical excess, results in lower price, making organic expansion even more challenging.
As the growth objective drifted into the background, many chemical companies focused on cost and efficiency efforts throughout the better part of the last decade. Organic growth has become increasingly difficult to achieve after years of consolidation, product commoditization, the introduction of new competitors in emerging markets, and increased cost-cutting efforts.
Companies must integrate important growth levers into their strategy, culture, and attitude in order to focus on them in a balanced and integrated manner. However, they must also accept that top-line gains will take time to manifest. One strategy is to figure out what can be changed right now, in the next three years, and in the future.
Malaysia’s abundant natural resources prove to be an advantage for the country’s chemical product industry. This kind of industry is a major contributor to the manufacturing sector. This is categorized as the primary industry as there are petrochemicals and oleochemicals, thus, making it being the primary products of this sector. Hence, where the natural resources will then be transferred to the secondary and tertiary industries.
Chemicals and chemical products are frequently used as raw materials in the production of a wide range of finished goods, including electrical and electronic equipment, plastics, agriculture, automotive, oil and gas, pharmaceuticals, and construction materials. As we can see, the chemicals and chemical products industry still has strong motivation to grow, and improve the development in the future.
Marketing and sales excellence is a critical driver of organic growth for chemical firms, and it has long been a hot topic. Long-term performance, including profitability and market share growth, is inextricably linked to the development of a company’s sales organization. Humans urge chemicals and chemical product makers to use the complete chemical ecosystem to boost innovation efficiency and explore new markets in order to go to the next level. Make the transition from simply selling items to providing new solutions that can help the sector become more advanced and environmentally sustainable.
Malaysia wants to expand into additional sub-sectors of the specialty chemicals market in the future. Almost all chemicals supplier in Malaysia are planning to use Crude Oil Chemicals technology, and industry participants have begun to investigate the feasibility of producing specialty chemicals straight from crude oil. Catalysts, aromatics, naphtha, wax, and white oil are examples of non-fuel goods with a large market potential.
These additives can be employed in a variety of sectors, including food & beverage, construction, and automobiles. Another area of development is the reformulation of marketing and supply chain management strategies, which will prepare the sector to diversify both its sources of supply and its sources of demand.