Malaysia Chemical and Petrochemical Market Outlook 2025

  • The Malaysia chemical and petrochemical market stood at 124,116.4 tons in 2020
  • It is projected to expand at a CAGR of 4.2% from 2021 to 2025
  • The Malaysia chemical and petrochemical market is expected to reach the output of 150,375.8 tons by the end of 2025

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Analysts’ Viewpoint on Malaysia Chemical and Petrochemical Market Scenario

“Companies in the Malaysia chemical and petrochemical market are investigating possible new acquisitions to boost slumping profits post coronavirus period. The market is undergoing a significant change with the growing demand for diesel in construction equipment. Although diesel contributes for high economic growth of Malaysia’s energy mix, it is associated with greenhouse gas (GHG) emissions that affect the environment. Hence, chemical and petrochemical companies should diversify production in biofuels, natural gas, and electricity whilst end users gradually shift to cleaner energy solutions in the upcoming years. Apart from balancing production of diesel and biofuels, manufacturers should leverage revenue opportunities in increasing commercial and industrial activities in Malaysia.”

Robust Petrochemical Infrastructure of Malaysia Benefitting Market Stakeholders

The rich oil & gas reserves of Malaysia are translating into revenue opportunities for market stakeholders. Large reserves of crude oil and condensates are gaining the attention of stakeholders in the Malaysia chemical and petrochemical market.

Companies are investing in the set-up of new refinery facilities that would produce a range of refined petroleum products. They are harnessing oil & gas reserves and entering into smart partnerships with large petroleum companies to expand their revenue streams.

An increasing number of domestic and foreign companies are unlocking growth opportunities in the Malaysia chemical and petrochemical market. They are upgrading their manufacturing plant capacities to increase availability of chemical and petrochemical products.

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Companies Redesign Workflow to Generate Revenue Streams amid Coronavirus Pandemic

The coronavirus pandemic has adversely affected business activities in the Malaysia chemical and petrochemical market. It was estimated by the United Nations Conference on Trade and Development (UNCTAD) that the pandemic would cause foreign direct investment (FDI) in Malaysia to shrink by 5% to 15% in 2020, due to the obvious contraction in the manufacturing sector and staggered rise in factory operations.

In order to revive market growth, stakeholders are preparing and embracing opportunities during the pandemic by focusing on positive or limited negative impact industries.

Companies in the Malaysia chemical and petrochemical market are taking steps to redesign their workflow processes at manufacturing plants to tide over challenges of the pandemic.

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Biofuels and Natural Gas Potential Threat to Gasoline Sales

Alternatives such as biofuels, natural gas, and electric energy are anticipated to reduce the demand for petroleum fuels such as gasoline in the long term. Moreover, fuels such as CNG are more cost efficient than gasoline, and the former can be bought in Malaysia for almost half the price. Nevertheless, manufacturers are tapping revenue opportunities in national and international transportation activities to boost the sales of gasoline apart from diversifying production in biofuels and natural gas.

While manufacturers are being future-ready by diversifying the production of biofuels, they are currently capitalizing on Malaysia’s high import capacity. Malaysia is presently on the list of China’s most important gasoline importers.

Multiple Income Sources Created via Product Variation and Smart Partnerships

Apart from petroleum products, manufacturers are boosting the production of gasoline and diesel products. Companies are building their product portfolio by rapidly innovating in olefins, polymers, and fertilizers, among others.

Companies in the Malaysia chemical and petrochemical market are entering into partnerships to build nitrile butadiene latex manufacturing plants. The high demand for nitrile gloves is generating value-grab opportunities for market stakeholders. Thus, manufacturers are tapping into high growth sectors such as personal care, construction, and healthcare to generate additional income sources.

Can Palm Oil Aid in Sustainable Development of Petrochemical Industry of Malaysia?

Palm oil holds promising potential as a feasible bio-based feedstock that can be used in the production of 1,3-PDO (1,3-propanediol) and bio-lubricants. Since palm oil is abundantly available in Malaysia, manufacturers can use it for the development of sustainable business in bio-based chemicals. As such, there is a need for relevant government policies to support sustainable business practices.

Since vegetable oils are linked to setbacks such as process complexity and unrecyclable catalysts, manufacturers in the Malaysia chemical and petrochemical market are increasing research in palm oil for the production of bio-lubricants.

Moreover, stakeholders are increasing their focus on sustainable agronomic and manufacturing practices for the cultivation and processing of palm oil.

Malaysia Chemical and Petrochemical Market: Overview

  • Industrialization and urbanization are the primary factors of climate change and performance growth. Malaysia is a rapidly developing economy, as it relies on capital-intensive and export-oriented industries that are funded by foreign capital and supported by various incentives. Therefore, rapid industrialization and urbanization in Malaysia are likely to boost the chemical and petrochemical market in the country during the forecast period.
  • According to Transparency Market Research’s latest research report on the chemical and petrochemical market for the forecast period, 2021 to 2025, rise in usage of chemical and petrochemicals in automotive is a key factor expected to boost the chemical and petrochemical market in Malaysia during the forecast period

Extensive Usage of Chemicals and Petrochemicals in Various Industries: Key Driver of Malaysia Chemical and Petrochemical Market

  • Malaysia’s economy is the third largest in Southeast Asia (after Indonesia and Thailand) and 35th in the world
  • The chemical industry is an important contributor to the economy of Malaysia, with petrochemicals and oleochemicals being the main products in the sector
  • Country's imports and exports are dominated by chemicals (5% and 7%), fuels (16% of imports and 22% of exports), rubber and plastics (7% and 5%), and vegetable by-products, primarily palm oil, (8 % and 3%)
  • The chemical component of various everyday products include paints, plastics, building materials, and auto parts. Methanol is also a clean source of energy that is used in trucks, power cars, buses, boats, fuels cells, boilers, and kitchens. Hence, demand for chemical and petrochemical products is high in the industries in Malaysia.
  • For instance, the Government of Malaysia purposes to position the country as the main gas and oil hub in Asia Pacific over the next few years. The target for this decade is an annual growth of 5%, an increase of about US$ 35 Bn of Gross National Income (GNI).
  • Additionally, there are thousands of chemicals used in various industries, some used to make consumer products, others used to produce energy, and some even used in the production of other industrial chemicals
  • Demand for chemical and petrochemicals in various industries has been increasing in Malaysia, owing to rise in need for petroleum in the country
  • Thus, significant demand for chemical and petrochemicals in the automotive, construction, and healthcare industries is driving the market

Refining Product Segment Dominates Malaysia Chemical and Petrochemical Market

  • Based on product type, the refining product segment dominated the chemical and petrochemical market in Malaysia in 2020. This can be primarily ascribed to increase in demand for the production of oil & gas, petroleum products, and chemicals.
  • The chemical product segment is likely to expand at a steady pace during the forecast period
  • The coal and coal chemical segments are anticipated to expand significantly during the forecast period, as these are used in various applications, including industries such as pharmaceuticals and food & beverages

Malaysia Chemical and Petrochemical Market: Competition Landscape

  • Detailed profiles of providers of chemical and petrochemicals have been included in the report to evaluate their financials, key product offerings, recent developments, and strategies
  • Key players operating in the chemical and petrochemical market in Malaysia are
    • Petronas
    • ConocoPhillips
    • Malaysia Hengyuan International Ltd.
    • Kemaman Bitumen Company
    • Vito
    • Pengerang Energy
    • Petron
    • San Miguel
    • BASF Malaysia
    • Eastman Malaysia
    • Suka Chemicals
    • Mapei Malaysia, etc.

Malaysia Chemical and Petrochemical Market: Major Players

  • Major providers of chemical and petrochemicals, such as Chemours Company Petronas, ConocoPhillips, and BASF Malaysia, are focusing on research & development, mergers, joint venture, collaborations, and product innovation strategies
  • In the report on the chemical and petrochemical market in Malaysia, we have discussed individual strategies, followed by company profiles of providers of chemicals and Petrochemicals
  • The ‘Competition Landscape’ section has been included in the report to provide readers with a dashboard view and company market share analysis of key players operating in the chemical and petrochemical market in Malaysia

Malaysia Chemical and Petrochemical Market Snapshot

Attribute

Detail

Market Size Volume in 2020 (Base Year)

124,116.4 Tons

Market Forecast Volume in 2025

150,375.8 Tons

Growth Rate (CAGR)

4.2%

Forecast Period

2021‒2025

Quantitative Units

Tons for Volume

Market Analysis

This segment includes cross segment analysis at Malaysia level. Qualitative analysis includes drivers, restraints, opportunities, key trends, Porter’s Five Forces analysis, supply chain analysis, and parent industry overview.

Competition Landscape

  • Market Share Analysis by Company (2020)
  • Company Profiles section includes overview, product portfolio, sales footprint, key subsidiaries or distributors, strategy & recent developments, and key financials

Format

Electronic (PDF) + Excel

Market Segmentation

  • Product
    • Refining Products
      • Crude Oil
      • Gasoline
      • Diesel
      • Kerosene
      • Marine Oil
      • Asphalt
      • LPG
      • Propane
      • Butane
      • Sulfur
      • Sulfuric Acid
    • Chemical Products
      • Benzene
      • Styrene
      • HDPE
      • LLDPE
      • PP
      • Butene-1
      • Butadiene
      • MTBE
      • PO
      • Acetic Acid
      • Methanol
      • EVA
    • Coal
    • Coal Chemicals
      • Methane
      • Carbon Monoxide
      • Hydrogen
      • Ammonia
      • Hydrogen Sulfide
      • Others

Country Covered

  • Malaysia

Companies Profiled

  • Petronas
  • ConocoPhillips
  • Malaysia Hengyuan International Ltd
  • Kemaman Bitumen Company
  • Vito
  • Pengerang Energy
  • Petron
  • San Miguel
  • BASF Malaysia
  • Eastman Malaysia
  • Suka Chemicals
  • Mapei Malaysia

Customization Scope

Available upon Request

Pricing

Available upon Request

Malaysia Chemical and Petrochemical Market – Scope of Report

The latest study collated and published by Transparency Market Research (TMR) analyzes the historical and present-day scenario of the chemical and petrochemical market in Malaysia in order to accurately gauge its future growth. The study presents detailed information about the important growth factors, restraints, and trends that are creating a landscape for the growth of the chemical and petrochemical market in Malaysia in order to identify growth opportunities for market stakeholders. The report also provides insightful information about how the chemical and petrochemical market in Malaysia would expand during the forecast period of 2021 to 2025.

The report offers intricate dynamics about different aspects of the chemical and petrochemical market in Malaysia, which aids companies operating in the market in making strategic development decisions. TMR’s study also elaborates on significant changes that are highly anticipated to configure growth of the chemical and petrochemical market in Malaysia during the forecast period. It also includes a key indicator assessment that highlights growth prospects of the chemical and petrochemical market in Malaysia and estimates statistics related to the growth of the market in terms of volume (tons).

This study covers a detailed segmentation of the chemical and petrochemical market in Malaysia, along with key information and a competition outlook. The report mentions company profiles of players that are currently dominating the chemical and petrochemical market in Malaysia, wherein various development, expansion, and winning strategies practiced and implemented by leading players have been presented in detail.

Key Questions Answered in TMR’s Report on Malaysia Chemical and Petrochemical Market

The report provides detailed information about the chemical and petrochemical market in Malaysia on the basis of comprehensive research on various factors that are playing a key role in accelerating the growth potential of the market. The information mentioned in the report answers path-breaking questions for companies that are currently operating in the market and are looking for innovative methods to create a unique benchmark in the chemical and petrochemical market in Malaysia in order to help them design successful strategies and make target-driven decisions.

  • Which product segment of the chemical and petrochemical market in Malaysia would emerge as a major revenue generator during the forecast period?
  • What would be the Y-o-Y growth trend of the chemical and petrochemical market in Malaysia between 2021 and 2025?
  • What are the winning imperatives of leading players operating in the chemical and petrochemical market in Malaysia?
  • Which are the leading companies operating in the chemical and petrochemical market in Malaysia?

Research Methodology – Malaysia Chemical and Petrochemical Market

The research methodology adopted by analysts for compiling the report on chemical and petrochemical market in Malaysia is based on detailed primary as well as secondary research. With the help of in-depth insights of the market-affiliated information that is obtained and legitimated by market-admissible resources, analysts have offered riveting observations and authentic forecasts for the chemical and petrochemical market in Malaysia.

During the primary research phase, analysts interviewed market stakeholders, investors, brand managers, vice presidents, and sales and marketing managers. Based on data obtained through interviews of genuine resources, analysts have emphasized the changing scenario of the chemical and petrochemical market in Malaysia.

For secondary research, analysts scrutinized numerous annual report publications, white papers, market association publications, and company websites to obtain the necessary understanding of the chemical and petrochemical market in Malaysia.

Malaysia Chemical and Petrochemical Market – Segmentation

TMR’s research study assesses the chemical and petrochemical market in Malaysia, in terms of product, as the segment includes refining products, chemical products, and coal & coal chemical products. This report presents extensive market dynamics and trends associated with different segments of the market, and how they are influencing the growth prospects of the chemical and petrochemical market in Malaysia.

Product
  • Refining Products
    • Crude Oil
    • Gasoline
    • Diesel
    • Kerosene
    • Marine Oil
    • Asphalt
    • LPG
    • Propane
    • Butane
    • Sulfur
    • Sulfuric Acid
  • Chemical Products
    • Benzene
    • Styrene
    • HDPE
    • LLDPE
    • PP
    • Butene-1
    • Butadiene
    • MTBE
    • PO
    • Acetic Acid
    • Methanol
    • EVA
  • Coal
  • Coal Chemicals
    • Methane
    • Carbon Monoxide
    • Hydrogen
    • Ammonia
    • Hydrogen Sulfide
    • Others
Region Malaysia

1. Executive Summary: Malaysia Chemical and Petrochemical Market

    1.1. Global Market Outlook

    1.2. Demand Side Trends

    1.3. Key Facts and Figures

    1.4. Trends Impacting Market

    1.5. TMR’s Growth Opportunity Wheel

2. Price Analysis, by Commodity Types, in Johor and Sarawak, 2021

    2.1. Industrial Land

    2.2. Water

    2.3. Electricity

    2.4. Natural Gas

    2.5. Steam

3. Analysis of Petrochemicals and Solid Cargo Handling Charges in Bantulu, Johor, and Sarawak, by Product 2021

4. Market Overview

    4.1. Market Segmentation

    4.2. Key Developments/Product Timeline

    4.3. Key Market Indicators/Definitions

    4.4. Market Dynamics

        4.4.1. Drivers

        4.4.2. Restraints

        4.4.3. Opportunities

    4.5. Malaysia Chemical and Petrochemical Market Analysis and Forecasts, 2020‒2025

        4.5.1. Malaysia Chemical and Petrochemical Market Volume (Kilo Tons)

        4.5.2. Malaysia Chemical and Petrochemical Market Value (US$ Mn)

    4.6. Porter’s Five Forces Analysis

    4.7. Regulatory Landscape

        4.7.1. Regulatory Framework for Refineries

        4.7.2. Trade and Tax Policies of Crude Oil, Natural Gas and Coal

        4.7.3. Regulatory Framework for Chemical and Petrochemical

        4.7.4. Government Regulations

        4.7.5. Tax Policies, by Each Product

        4.7.6. Product Sales and Export Policies

        4.7.7. Government Subsidies by Each Product

    4.8. Value Chain Analysis

        4.8.1. List of Refinery Operators/Owners

        4.8.2. List of Petrochemicals Companies

        4.8.3. List of Chemicals Companies

    4.9. Quality Standards Followed in Malaysia and Future Outlook of the same, by Each Product

5. COVID-19 Impact Analysis for the Chemical and Petrochemical Industry in Malaysia

6. Overview of Refinery Situation in Malaysia, 2015-2025

    6.1. Analysis of Refineries that are in Operation

        6.1.1. Name of the Refinery

        6.1.2. Location

        6.1.3. Commissioning Date (Age of the Refinery)

        6.1.4. Capacity and Utilization Rate*

        6.1.5. Device Composition and Scale*

        6.1.6. Product Structure

    6.2. Proposed Refineries

        6.2.1. Name of the Refinery

        6.2.2. Location

        6.2.3. Expected Commissioning Date

        6.2.4. Capacity

        6.2.5. Device Composition and Scale*

        6.2.6. Product Structure

7. Production Output Analysis (Kilo Tons)

    7.1. Production Output Analysis in Malaysia, by Product, 2015‒2025

    7.2. Production Output Analysis in Malaysia, by Company, 2019‒2020

        7.2.1. Production Output by Each Product

8. Pricing Trend Analysis and Forecast, 2018‒2025

    8.1. Pricing Analysis, by Each Product

9. Import-export Analysis, 2018‒2020

    9.1. Import-export Analysis, by Each Product

10. Malaysia Chemical and Petrochemical Market Analysis and Forecasts, by Product

    10.1. Key Findings

    10.2. Market Volume (Kilo Tons) and Value (US$ Mn) Forecast by Product, 2015–2025

        10.2.1. Refining products

            10.2.1.1. Crude oil

            10.2.1.2. Gasoline

            10.2.1.3. Diesel

            10.2.1.4. Kerosene

            10.2.1.5. Marine oil

            10.2.1.6. Asphalt

            10.2.1.7. LPG

            10.2.1.8. Propane

            10.2.1.9. Butane

            10.2.1.10. Sulfur

            10.2.1.11. Sulfuric Acid

        10.2.2. Chemical products

            10.2.2.1. Benzene

            10.2.2.2. Styrene

            10.2.2.3. HDPE

            10.2.2.4. LLDPE

            10.2.2.5. PP

            10.2.2.6. Butene-1

            10.2.2.7. Butadiene

            10.2.2.8. MTBE

            10.2.2.9. PO

            10.2.2.10. Acetic Acid

        10.2.3. Coal

        10.2.4. Coal Chemical

            10.2.4.1. Methane

            10.2.4.2. Carbon Monoxide

            10.2.4.3. Hydrogen

            10.2.4.4. Ammonia

            10.2.4.5. Hydrogen Sulfide

    10.3. Market Attractiveness, by Product

11. Competition Landscape

    11.1. Market Players - Competition Matrix (by Tier and Size of Companies)

    11.2. Market Share Analysis, 2020

    11.3. Market Footprint Analysis

        11.3.1. By Product

    11.4. Competitive Benchmarking

    11.5. Company Profiles

        11.5.1. Petronas

            11.5.1.1. Company Revenue

            11.5.1.2. Business Overview

            11.5.1.3. Product Segments

            11.5.1.4. Geographic Footprint

            11.5.1.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.2. ConocoPhillips

            11.5.2.1. Company Revenue

            11.5.2.2. Business Overview

            11.5.2.3. Product Segments

            11.5.2.4. Geographic Footprint

            11.5.2.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.3. Malaysia Hengyuan International Ltd.

            11.5.3.1. Company Revenue

            11.5.3.2. Business Overview

            11.5.3.3. Product Segments

            11.5.3.4. Geographic Footprint

            11.5.3.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.4. Kemaman Bitumen Company

            11.5.4.1. Company Revenue

            11.5.4.2. Business Overview

            11.5.4.3. Product Segments

            11.5.4.4. Geographic Footprint

        11.5.5. Vito

            11.5.5.1. Company Revenue

            11.5.5.2. Business Overview

            11.5.5.3. Product Segments

            11.5.5.4. Geographic Footprint

            11.5.5.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.6. Pengerang Energy

            11.5.6.1. Company Revenue

            11.5.6.2. Business Overview

            11.5.6.3. Product Segments

            11.5.6.4. Geographic Footprint

            11.5.6.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.7. Petron

            11.5.7.1. Company Revenue

            11.5.7.2. Business Overview

            11.5.7.3. Product Segments

            11.5.7.4. Geographic Footprint

            11.5.7.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.8. San Miguel

            11.5.8.1. Company Revenue

            11.5.8.2. Business Overview

            11.5.8.3. Product Segments

            11.5.8.4. Geographic Footprint

            11.5.8.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.9. BASF Malaysia

            11.5.9.1. Company Revenue

            11.5.9.2. Business Overview

            11.5.9.3. Product Segments

            11.5.9.4. Geographic Footprint

            11.5.9.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.10. Eastman Malaysia

            11.5.10.1. Company Revenue

            11.5.10.2. Business Overview

            11.5.10.3. Product Segments

            11.5.10.4. Geographic Footprint

            11.5.10.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.11. Suka Chemicals

            11.5.11.1. Company Revenue

            11.5.11.2. Business Overview

            11.5.11.3. Product Segments

            11.5.11.4. Geographic Footprint

            11.5.11.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.12. Mapei Malaysia

            11.5.12.1. Company Revenue

            11.5.12.2. Business Overview

            11.5.12.3. Product Segments

            11.5.12.4. Geographic Footprint

            11.5.12.5. Strategic Partnership, Production Method Expansion, New Product Innovation etc.

        11.5.13. Others

List of Tables

Table 1: Overview of Refinery Situation in Malaysia – Operational Refineries

Table 2: Overview of Refinery Situation in Malaysia – Proposed Refineries

Table 3: Production Output Analysis (Tons), 2015-2020, by Refining Products

Table 4: Production Output Analysis (Tons), 2015-2020, by Chemical Products

Table 5: Production Output Analysis (Tons), 2015-2020, by Coal and Coal Product

Table 6: Price Trend Analysis (US$/Ton), 2017-2031, by Refining Products

Table 7: Price Trend Analysis (US$/Ton), 2018-2025, by Chemical Products

Table 8: Price Trend Analysis (US$/Ton), 2017-2031, by Coal and Coal Product

Table 9: Import-Export Analysis (Tons), by Refining Products

Table 10: Import-Export Analysis (Tons), by Chemical Products

Table 11: Import-Export Analysis (Tons), by Coal and Coal Products

Table 12: Market Size (Tons) Forecast, by Refining Products

Table 13: Market Size (Tons) Forecast, by Chemical Products

Table 14: Market Size (Tons) Forecast, by Coal and Coal Products

List of Figures

Figure 1: Malaysia Chemicals and Petrochemicals Market Analysis and Forecasts, 2020-2031

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Chemical And Petrochemical Market