Paper, Printing and Publishing

Since its establishment in the 1960s, Malaysia’s paper, printing, and publishing industry has continuously adapted to changing market conditions, consumer preferences, and technological advancements. The industry’s evolution is driven by developments in digital media, e-commerce, and sustainability practices. Recovered paper serves as the primary raw material for recycled pulp, kraft paper, and various paper-based products, catering to sectors like tissue production, diaper manufacturing, and paper packaging.

The industry has attracted substantial investments from both global and local players. Notable global investors such as Best Eternity Recycle Technology, Jingxing Holdings, and ND Paper have injected RM10.4 billion into Malaysia’s paper and paper-based products sector over the past decade. Local companies have also expanded, often through foreign equity acquisition, exemplified by GS Paperboard & Packaging RM1.2 billion plant in Selangor, which employs advanced paper-making technology.

To regulate the growing wastepaper importation and promote sustainable practices, the government introduced specific guidelines for importation and inspection of wastepaper in 2022. A temporary two-year moratorium on issuing Manufacturing Licences (ML) for new and expansion/diversification projects using wastepaper as raw materials was also implemented. Industry players have already adopted sustainable infrastructure, including wastewater treatment plants and solar panels.

On 10 January 2022, the Government announced a new policy on importation of wastepaper into the country; Guidelines for Importation and Inspection of Waste Paper. All waste papers intended to be imported into Malaysia are subject to the inspection process and issuance of Certificate of Approval (COA) by SIRIM.

The Ministry of Investment, Trade and Industry (MITI) has announced a moratorium on Manufacturing Licence (ML) and ICA 10 approval for papermill activities for 2 years starting from 15 March 2022. Therefore, no Manufacturing Licence or ICA 10 will be issued for papermill activities which includes new, expansion and diversification projects.

The industry’s outlook remains positive, with the global market for paper packaging materials expected to grow to US$323 billion by 2026. The COVID-19 pandemic emphasised the importance of safe, hygienic, and secure product delivery through e-commerce. Demand for innovative packaging materials surged as merchants aimed to minimise product loss and contamination risks. Hygienic paper-based products such as wet wipes and tissues remained sought after during the pandemic. Additionally, the shift towards eco-friendly alternatives due to anti-plastic initiatives further benefits the paper industry’s growth.