PETALING JAYA: Malaysian plastics manufacturers are starting to take advantage of Malaysia’s recent ratification of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) by promoting their products to new markets.
Malaysian Plastics Manufacturers Association (MPMA) president Lim Kok Boon cited three new markets for the plastics sector – Canada, Mexico and Peru – who are net importers of plastic products and also members of the CPTPP.
“These countries did not have any free trade agreement with Malaysia previously. Canada is the first export destination that our members are looking at as the import duties for plastic products have been eliminated since Jan 1, 2023 from a maximum of 6.5%.
“Currently, the major export markets for Malaysian-made plastic products are the European Union, Asean and Japan. The implementation of the CPTPP will widen the export market opportunities for Malaysia’s plastics manufacturing industry,” he said in a statement today.
Lim said Malaysian plastics manufacturers have established a firm footing in the export market and maintained its position as the largest producers of plastic stretch film in Asia for years.
“Stretch film is a packaging material that is widely used worldwide. We believe our products will gain popularity in the CPTPP market,” he explained.
He noted the opening up of new markets would widen market opportunities to partly cushion the impact of weakening demand from traditional export countries.
The implementation of the CPTPP will also attract foreign direct investments to set up a manufacturing base in the country, which will augur well for the manufacturing sector.
Lim said there are currently about 1,200 plastics manufacturing companies in Malaysia, employing some 150,000 workers. About 90% of the companies are small and medium enterprises.
The plastics industry registered total sales turnover of RM58.6 billion in 2021, of which 27% or RM16 billion worth of products were exported.
MPMA currently has about 800 members, which represent about 60% of plastics manufacturers and account for 80% of the country’s total production of plastic products.