By MPMA 23 February 2016 Current Profile of the Malaysian... · Other MNCs are relocating to...
Transcript of By MPMA 23 February 2016 Current Profile of the Malaysian... · Other MNCs are relocating to...
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By MPMA
23 February 2016
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Contents 1. Performance by market sub-sectors
Electrical and electronics
Automotive
Household
Packaging
Export
2. Overall performance
3. Outlook for 2016
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Electrical and Electronics Sector: Monthly Production Statistics on TVs
Production of TV sets for 2015 reduced by 31%, compared to 2014. Production reduced from 12.5 million units to 8.6 million units.
TV producers are believed to have shifted some production to Thailand, Indonesia and Vietnam.
000 units
Source: Department of Statistics
Chart1
8331010725
884966586
11871115380
13111185381
13471129670
13041013651
19311007700
15961024812
15891006927
189011221074
18711085946
1328835770
2013
2014
2015
Sheet1
201320142015
J8331,010725
F884966586
M1,1871,115380
A1,3111,185381
M1,3471,129670
J1,3041,013651
J1,9311,007700
A1,5961,024812
S1,5891,006927
O1,8901,1221074
N1,8711,085946
D1,328835770
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Annual Production of TV Sets million units
Source: Department of Statistics
Chart1
620072007
5.720082008
6.420092009
13.220102010
1420112011
13.0520122012
17.120132013
12.520142014
8.620152015
Series 1
Column1
Column2
Sheet1
Series 1Column1Column2
20076.0
20085.7
20096.4
201013.2
201114.0
201213.1
201317.1
201412.5
20158.6
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Electrical and Electronics Sector: Monthly Production Statistics on Air-cons
Production of air-cons declined by 15%, from 2.91 million units 2014 to 2.48 million units in 2015.
Similar to the TV producers, air-con producers are also relocating their production base to the neighbouring countries.
Units (000)
Source: Department of Statistics
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222199200
245202209
290257282
276245285
231262244
217285233
216251160
193233193
200263174
187216156
163213151
195284193
2013
2014
2015
Sheet1
201320142015
J222199200
F245202209
M290257282
A276245285
M231262244
J217285233
J216251160
A193233193
S200263174
O187216156
N163213151
D195284193
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Annual Production of Air-conds million units
Source: Department of Statistics
Chart1
1.8720072007
2.1720082008
1.9420092009
2.5920102010
2.8520112011
2.6720122012
2.6320132013
2.9120142014
2.4820152015
Series 1
Column1
Column2
Sheet1
Series 1Column1Column2
20071.87
20082.17
20091.94
20102.59
20112.85
20122.67
20132.63
20142.91
20152.48
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Market Trends of the Electrical and Electronics Sector Japanese brands are loosing out to the Korean and
China brands. Low end models are passing out to ODM companies.
Many electronics companies started to relocate again. Samsung Senawang shifted to Samsung Vietnam. Other MNCs are relocating to Vietnam, Philippines and inland of China.
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Automotive Sector: Monthly Statistics on Total Production of Passenger Cars
Total production of passenger cars by the local car producers and assemblers increased by 3.5% to 564,000 units in 2015, compared to 545,000 units in 2014.
However, sales of passenger cars increased by only 0.5% from 588,000 units in 2014 to 591,000 units in 2015.
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units
Source: Department of Statistics
Chart1
468514987452387
369534309244023
448724680755183
457605317656745
419875385651024
392324770746875
487273739037691
376413984744812
487924562041386
452344113350974
456384288445747
485094643841171
2013
2014
2015
Sheet1
201320142015
J46,85149,87452,387
F36,95343,09244,023
M44,87246,80755,183
A45,76053,17656,745
M41,98753,85651,024
J39,23247,70746,875
J48,72737,39037,691
A37,64139,84744,812
S48,79245,62041,386
O45,23441,13350,974
N45,63842,88445,747
D48,50946,43841,171
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Annual Production of Passenger Cars Thousand units
Source: Malaysian Automotive Association (MAA)
Chart1
40320072007
48420082008
44720092009
52320102010
48820112011
51020122012
54420132013
54520142014
56420152015
Series 1
Column1
Column2
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Series 1Column1Column2
2007403
2008484
2009447
2010523
2011488
2012510
2013544
2014545
2015564
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Market Trends of the Automotive Sector Implementation of GST affected the consumers
sentiment.
Weakening of ringgit, falling crude oil price raised concerns on economic growth.
Low interest rates but on increasing trends.
Credit tightening by BNM, more stringent approving criteria.
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Market Trends of the Automotive Sector Launch of several new models at competitive
prices helped to attract new car buyers.
Innovative and attractive offers and scheme for new car buyers helped to gain some sales.
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Export of Plastic Table Wares, Kitchen Wares and other Household Products (HS: 3924)
Exports of plastic household products for 2015 amounted to RM369 million, representing an increase of 3.7%, from RM356 million in 2014.
RM million
Source: Department of Statistics
Chart1
27.328.233.1
21.324.223.7
30.228.832.4
27.232.829
25.733.930.7
22.729.532.2
2531.429.1
20.227.130.3
25.226.729
2827.834
2725.433.2
23.840.332.9
2013
2014
2015
Sheet1
201320142015
J27.328.233.1
F21.324.223.7
M30.228.832.4
A27.232.829
M25.733.930.7
J22.729.532.2
J2531.429.1
A20.227.130.3
S25.226.729
O2827.834
N2725.433.2
D23.840.332.9
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Annual Export of Plastic Household Products RM million
Source: MATRADE
Chart1
222
290
271
290
319
290
304
356
369
Column1
Sheet1
Column1
2007222
2008290
2009271
2010290
2011319
2012290
2013304
2014356
2015369
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Packaging Sector: Monthly Export of Plastic Bags (HS: 3923)
Total export of plastic bags for 2015 increased by 6.5% to RM4.25 billion, compared to RM3.99 billion in 2014.
RM million
Source: Source: Department of Statistics
Chart1
292335.4378
235280.4270.9
320314.8369.9
296337360.7
306327.2327.2
285323.5340
324327.6343.7
302356.1361.5
329327.1367.7
354370.6418.8
322333353.5
323354.6359.6
2013
2014
2015
Sheet1
201320142015
J292335.4378
F235280.4270.9
M320314.8369.9
A296337360.7
M306327.2327.2
J285323.5340
J324327.6343.7
A302356.1361.5
S329327.1367.7
O354370.6418.8
N322333353.5
D323354.6359.6
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Annual Export of Plastic Bags RM billion
Source: Department of Statistics
Chart1
3.4
3.71
2.9
3.3
3.45
3.47
3.69
3.99
4.25
Column1
Sheet1
Column1
20073.40
20083.71
20092.90
20103.30
20113.45
20123.47
20133.69
20143.99
20154.25
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Packaging Sector: Monthly Export of Plastic Films and Sheets (HS 3919/20/21)
Total export of plastic films and sheets increased by 5.5% from RM4.58 billion in 2014 to RM4.83 billion in 2015.
Demand from the main markets, i.e., US and Japan is stable due to improving economies.
Malaysia is the largest stretch film producer in Asia, 3rd largest in the world.
RM million
Source: Department of Staticstics
Chart1
306.5376398.1
260.8363.2322.9
336.9397.3395.8
310.5382.9405.1
319.4387.5375.4
301.9380406.6
330.4360.2400.3
323.1401.1393.6
359.7381.6426.3
359.9401.6465.8
344.3375.1415.4
334.8376.3426.9
2013
2014
2015
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201320142015
J306.5376398.1
F260.8363.2322.9
M336.9397.3395.8
A310.5382.9405.1
M319.4387.5375.4
J301.9380406.6
J330.4360.2400.3
A323.1401.1393.6
S359.7381.6426.3
O359.9401.6465.8
N344.3375.1415.4
D334.8376.3426.9
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Annual Export of Plastic Films and Sheets RM billion
Source: Department of Statistics
Chart1
2.95
3.12
2.95
3.26
3.72
3.63
3.88
4.58
4.83
Column1
Sheet1
Column1
20072.95
20083.12
20092.95
20103.26
20113.72
20123.63
20133.88
20144.58
20154.83
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Overall Performance The plastics industry registered a total sales
turnover of RM24.77 billion in 2015, representing an increase of 27.3% from RM19.46 billion in 2014. However, the huge increase was merely due to a revised method of compilation by the Department of Statistics, in which we believe that the actual growth of the plastics industry is in the region of 5% to 6%.
Export increased by 8.5% from RM11.94 billion in 2014 to RM12.96 billion in 2015.
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Overall Performance Domestic growth was affected by the
implementation of GST, and rising imported input costs due to weakening ringgit.
Export sector benefited from the weakening of the ringgit against the world major currencies including USD, Euro, Yen and Singapore Dollar.
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Export of Plastic Products (2001-2015)
RM billion
Source: Department of Statistics
Chart1
3.722001
3.922002
4.532003
5.572004
6.672005
7.672006
8.382007
9.32008
8.32009
9.42010
10.152011
10.052012
10.72013
11.942014
12.962015
Series 1
Column1
Sheet1
Series 1Column1Column2
20013.72
20023.92
20034.53
20045.57
20056.67
20067.67
20078.38
20089.3
20098.3
20109.4
201110.15
201210.05
201310.7
201411.94
201512.96
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Export/Sales Turnover Ratio Turnover RM billion
E/T Ratio
Note: The Department of Statistics has revised the basis of data compilation, resulting in a 27% increase in total sales turnover for 2015.
Chart1
8.50.45
8.80.45
9.40.48
11.50.48
140.48
15.10.52
15.10.53
16.40.57
14.60.57
15.80.59
16.10.63
17.10.59
17.90.6
19.40.62
24.60.52
Turnover
E/T ratio
Sheet1
200120022003200420052006200720082009201020112012201320142015
Turnover8.58.89.411.51415.115.116.414.615.816.117.117.919.424.6
E/T ratio0.450.450.480.480.480.520.530.570.570.590.630.590.60.620.52
Sheet2
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Main Exports of Plastic Products Films and sheets: RM4.83b
Chart1
483
425
388
Bags: RM4.25b
Others: RM3.88b
Exports 2010
Exports 2015: RM12.96b
Sheet1
Exports 2010
Films and sheets483
Bags425
Others388
To resize chart data range, drag lower right corner of range.
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Key Data for the Malaysian Plastics Industry
2011 2012 2013 2014 2015 Malaysias gross domestic product (GDP) growth 5.1% 5.6% 4.7% 6.0% 5.0%
Number of plastics manufacturers 1,400 1,350 1,350 1,300 1,300
Employment 74,000 74,500 78,000 82,000 80,000
Turnover RM16.25b (+2.1%) RM17.16b (+6.5%)
RM17.94b (+4.5%)
RM19.37 (+7.3%)
*RM24.77 (+27%)
Export RM10.15b (+6%) RM10.05b
(-1%) RM10.69b (+6.4%)
RM11.94b (+11.5%)
RM12.96b (+8.5%)
% of export against turnover 62% 59% 60% 62% 52%
Resin consumption 1.98m MT (+5%) 2.04m MT
(+3%) 2.10m MT
(+3%) 2.15m MT
(2.5%) 2.22m MT
(3%)
Per capita consumption of resin 68kg 69kg 70kg 70kg 71kg
*Note: Revised basis of data compilation by the DOS
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Factors Contributing to the Growth Moderate Malaysian GDP growth of 5% in 2015.
Strong US and Euro augured well for the export sector. Exports contributed more than 50% of the total sales.
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Factors Contributing to the Growth Further improvement is expected for the world
economies in 2016. World Bank: global economy slowing 2.5% in 2015, and is projected to increase to 2.9% in 2016.
Economies in the high income countries including the US, Japan and Euro areas are expected to improve further in 2016.
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Factors Contributing to the Growth World economic growth at a glance
2014 2015e 2016f 2017f World 2.6 2.4 2.9 3.1 High income 1.7 1.6 2.1 2.1
US 2.4 2.5 2.7 2.4 Euro Area 0.9 1.5 1.7 1.7 Japan -0.1 0.8 1.3 0.9 UK 2.9 2.4 2.4 2.2
Developing 4.9 4.3 4.8 5.3 China 7.3 6.9 6.7 6.5 India 7.3 7.3 7.8 7.9
Source: World Bank Global Economic Prospects January 2016
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Outlook for 2016 The industry is expected to be a challenging year.
The global economies are expected to grow moderately, with the ongoing slowdown in China, as well a modest and uneven recovery in the advanced economies.
Domestically, the increase in minimum wages for workers in July 2016 is expected to add further cost burden to the manufacturers. Consumers are still struggling to adjust their spending as a result of the ringgit depreciations and GST.
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Outlook for 2016 Labour cost is expected to increase further due to
impending levy hike for foreign workers as well as the various additional processing and handling charges.
To face the challenge of cost increase, manufacturers have to improve their cost efficiency and product quality through investing in advanced machinery, automation equipment, innovative technology and creating higher skilled manpower.
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Outlook for 2016 The extension of the Reinvestment Allowance (RA)
for another three years for 2016-2018 will encourage more companies to expand their operations.
The growth for 2016 is expected to be slightly higher than 2015, at about 6% to 7%.
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Performance of the Malaysian Plastics Industry 2015 ContentsElectrical and Electronics Sector: Monthly Production Statistics on TVs Annual Production of TV SetsElectrical and Electronics Sector: Monthly Production Statistics on Air-consAnnual Production of Air-condsMarket Trends of the Electrical and Electronics SectorAutomotive Sector: Monthly Statistics on Total Production of Passenger Cars Annual Production of Passenger CarsMarket Trends of the Automotive SectorMarket Trends of the Automotive SectorExport of Plastic Table Wares, Kitchen Wares and other Household Products (HS: 3924)Annual Export of Plastic Household ProductsPackaging Sector: Monthly Export of Plastic Bags (HS: 3923)Annual Export of Plastic BagsPackaging Sector: Monthly Export of Plastic Films and Sheets (HS 3919/20/21)Annual Export of Plastic Films and SheetsOverall Performance Overall Performance Export of Plastic Products (2001-2015)Export/Sales Turnover RatioMain Exports of Plastic ProductsKey Data for the Malaysian Plastics IndustryFactors Contributing to the Growth Factors Contributing to the Growth Factors Contributing to the Growth Outlook for 2016Outlook for 2016Outlook for 2016Thank you