BMI's Executive Summary

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Industry Overview

The Malaysian petrochemicals sector has been growing at an impressive pace. The government's investor-friendly policies and easy availability of feedstock have been chiefly responsible for this growth. The country is also strategically located and boasts strong physical infrastructure. About 39 companies are in operation in the nation's petrochemicals industry. Major players in the industry include state-owned Petronas and local Titan Chemicals, Germany-based BASF, UK-based BP, Netherlands-based Royal Dutch Shell, Japan-based Mitsui, Toray Industries and Kaneka, US-based ExxonMobil, Dow Chemical and Eastman Chemical and China-based Dairen Chemicals.

Industry Developments

Titan Chemicals plans to increase its polyolefins capacity in order to cater to the expanding Malaysian and Indonesian markets. It plans to boost production capacity at its Malaysian site by 100,000 tonnes to 480,000 tonnes by 2008. Titan is reportedly planning to open a new metathesis plant at its integrated industrial site in Pasir Gudang in Johar. The facility is designed to produce 115,000 tonnes per annum (tpa) of propylene. As reported in September 2007, Indian Reliance Industries Ltd (RIL) will acquire the assets of Hualon Corporation of Malaysia. Hualon owns polyester and textile manufacturing facilities near Port Kalang.

Development Of Petrochemicals Zones

Malaysia is home to well-developed, integrated petrochemicals zones that offer world-class facilities. The Malaysian government is working towards developing Bintulu (Sarawak), Gurun (Kedah), Tanjung Pelepas (Johor) and Labuan into new petrochemicals zones. Existing petrochemicals zones including Kertih (Terengganu), Gebeng (Pahang) and Pasir Gudang-Tanjung Langsat (Johor) will also be leveraged further.

Industry Forecast

The new third industry master plan (IMP3, 2006-2020) outlines further expansion in the Malaysian petrochemicals industry and seeks to enhance competitiveness. During the plan period, development investment of approximately MYR34bn (US$9.99bn) will be made. The country's petrochemicals exports are projected to reach MYR20.4bn (US$5.99bn) by 2010 and MYR36.7bn (US$10.79bn) by 2020. By 2020, three new crackers will also be constructed. The government is also emphasising on the development of related services and support infrastructure. The petrochemicals industry is also likely to benefit from rising interest in the Malaysian oil and petroleum sector.

Contents

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Chapter 1 - Executive Summary

Industry Overview

Industry Developments

Development of Petrochemical Zones

Industry Forecast

Malaysia Petrochemicals Industry SWOT

Malaysia Business Environment SWOT

Malaysia Economic SWOT

Chapter 2 - Market Overview

Table: Investment Approvals by Industrial Sector

Key Petrochemical Products

Plastics

Table: Malaysia Cracker Capacity – Historical Data & Forecasts ('000 tpa)

Chapter 3 - Industry Trends and Developments

Recent Developments

Emergence Of Petrochemical Zones

Table: Malaysia Petrochemical Plants

Planned Projects and Expansions

Chapter 4 - Industry Forecast Scenario

Table: Malaysia Sector Forecasts

Chapter 5 - Economic Outlook

Table: GDP, Population & Output

Chapter 6 - Company Monitor

Petronas

Titan Chemicals

BASF

Dow Chemical

BP

Chapter 7 - BMI Forecast Modelling

How we generate our industry forecasts

Petrochemicals Industry

Cross checks

Competitive Landscape for Asia Petrochemicals Reports: Sample of Companies Ranked

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Comparative company analyses and rankings by US$ sales, % market share, employee size, registration date and ownership structure. Company SWOTs (Strengths, Weaknesses, Opportunities, Threats) on all leading international and national operators in each market, including competitive intelligence in the following: Overall geographic presence, competitive positioning against local companies; production capacity, sales and market share; joint ventures, foreign direct investment, projects and acquisitions strategy.