Thailand
Malaysia: More investments seen in petrochemical sector
KUALA LUMPUR: The International Trade and Industry Ministry (Miti) foresees stronger flow of domestic and foreign investments into the Malaysian petrochemical sector for the full-year 2018.
Speaking on the sidelines of the Asia Petrochemical Industry Conference (APIC) 2018, Miti secretary-general Datuk Isham Ishak expects total investments in the domestic petrochemical sector this year to exceed the amount approved in 2017 of RM26bil.
Isham said the country approved 10 investments in the sector last year. Meanwhile, in the first four months of 2018, Malaysia has approved four investments with a total value of RM15.3bil for the petrochemical industry.
With the commissioning of the US$27bil Pengerang Integrated Complex (PIC) next year, Isham believes the project will attract more foreign direct investments into Malaysia.
“With the Pengerang (project), we hope it will be an impetus, a magnet for other investors to come to Malaysia, using Pengerang as their supply of inputs to produce more downstream products, especially in plastic production.
“At Miti, we want to see the local petrochemical industry to move further downstream and we believe more companies will undertake greater investments in this segment over the long run,” he said.
Petroliam Nasional Bhd (Petronas) president and chief executive officer Tan Sri Wan Zulkiflee Wan Ariffin, who spoke at the APIC opening ceremony, said that an additional 3.3 million tonnes of commodity and differentiated petrochemical products would be produced by Petronas annually once the PIC is commissioned.
He added that the additional production of petrochemical products from PIC would cater to the rising demand from the regional markets.
“But the game does not stop here. We intend to push further into the specialty space and develop innovative products solution for our customers. In this respect, we welcome partners who share similar aspirations to actively collaborate with us,” he said.
Meanwhile, in his keynote address at the opening ceremony, Miti deputy minister Ong Kian Ming urged industry players along the value chain of the petrochemical industry to collaborate in order to find innovative solutions.
He said that through the diversification of downstream manufacturing, more innovative products could be introduced, especially to reduce single-use plastics and to increase products that could participate in a circular economy.
Ong also reaffirmed the government’s pro-business stance in stimulating business expansion and investments across various industries in Malaysia, including the petrochemical sector.
“Amid the uncertainties, the commitment of the government is to make sure we remain open to international trade and investment.
“The government is committed to position Malaysia as a hub in Asean for exporting value-added goods – petrochemical-based or otherwise – to China and the United States,” said Ong.
Source: https://www.thestar.com.my/business/business-news/2018/08/22/more-investments-seen-in-petrochemical-sector/#sY8myMq7gdmzuqRQ.99