Chemical Advance Materials - Chemical and Chemical Products - MIDA | Malaysian Investment Development Authority
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Chemical Advance Materials – Chemical and Chemical Products

Chemicals and
Chemical Products

In 2022, the chemicals industry rebounded from COVID-19 disruptions, with sectors like healthcare, cosmetics, and electronics driving demand. Industries along the value chain are poised for growth based on 2023 global trends.

Trends involve digitalization and Industry 4.0 due to pandemic constraints. ‘Greening’ industrial production through sustainable practices gains global traction. Industrial production shifts from North Atlantic to East Asia, especially China, Japan, and South Korea.

The government introduces the Chemical Industry Roadmap (CIR) 2030 to guide sector development. Aligning investments with CIR objectives fosters competitiveness, aiding Malaysia’s growth.

Investment prospects include energy storage (green hydrogen and batteries) and rare-earth elements (REEs) production. Malaysia aims to be a green hydrogen hub, welcoming battery manufacturing and REEs development.

Second-gen biofuels like hydrogenated vegetable oil (HVO) offer investment opportunities. HVO, resembling diesel, powers vehicles and can be upgraded into a sustainable aviation fuel. Local HVO feedstock sourcing is sought after due to inadequate used cooking oil collection.

22.2%

Domestic Investments

(RM1.2 bil)

RM5.4 bil

Total Approved Investments in 2022

80%

77.8%

Foreign Investments

(RM4.2 bil)

RM5.4 bil

Total Approved Investments in 2022

22.2%

Domestic Investments

(RM1.2 bil)

77.8%

Foreign Investments

(RM4.2 bil)

53

Approved Projects

1,787

Job Opportunities

For more statistics, please click here.

Chemicals and Chemical Products

Inorganic
Chemicals

Agricultural
Chemicals

Industrial
Gases

Fertilisers

Paint and
Printing Ink

Inorganic Chemicals

  • This sector covers the production of chlor-alkali, acids, and some speciality chemicals such as silicates, oxides, hydroxides, acids, electronic chemicals and catalysts.
  • Major players are CCM Chemicals, Taiko, Malay-Sino Chemical Industries, South Pacific Chemical Industries, Nylex, ACME Chemicals and BASF.

Agricultural Chemicals

  • There are more than 100 companies in operation in this sector. A large number of these are local companies involved in the mixing and blending or formulation or agricultural chemicals.

Industrial Gases

  • There are more than 10 companies in operation producing oxygen, nitrogen, hydrogen, carbon dioxide, acetylene, argon and nitrous oxide.
  • These industrial gases are usually of purity ranging from 99.5% to 99.9% and are used for industrial application such as welding, cutting, blanketing and hydrogenation.
  • Major manufacturers are PETRONAS Gas, Air Liquide, Linde, Air Products, Iwatani and Southern Industrial Gas

Fertilisers

  • Organic fertilisers are from agricultural waste.
  • Inorganic fertilisers, also referred as synthetic fertiliser, is manufactured artificially and contains minerals or synthetic chemicals such as phosphorus, potassium and other trace elements.
  • There are more than 20 companies in operation.
  • Major producers of fertilisers are ASEAN Bintulu Fertilizers, PETRONAS Chemicals Fertiliser Kedah, PETRONAS Chemicals Fertiliser Sabah, Agri-Sabah Fertilizer, Ancom, Malaysia NPK Fertilizer and Farmcochem.

Paint and Printing Inks

  • There are about 60 manufacturers in operation.
  • Production of paint and its related products comprise varnishes, shellacs, lacquers and thinners and printing inks.
  • Main producers are Nippon Paint , Sime Kansai Paints, First Malaysian Coating, ICI Paints , Hempel Manufacturing, PPG Coatings, Sime Coatings, Jotun Paints and Boustead Sissons Paints.

Our Investors' Highlights

Baerlocher is the leading additive supplier for the plastic industry in Asia and the Middle East. Baerlocher Malaysia, located in Seremban manufactures PVC stabilizers.

- Baerlocher

Get Started

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Learn more about the essential forms and guidelines to help you get started on your journey in Malaysia’s manufacturing sector.
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