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’s RM1.2 billion plant in Selangor, which employs advanced paper-making technology.

In response to the increasing importation of waste paper and the need for sustainable practices, the Malaysian government instituted specific importation and inspection guidelines for waste paper in 2022. This was accompanied by a temporary two-year moratorium on new and expansion/diversification projects using waste paper as raw material. In alignment with global sustainability trends, industry players have embraced eco-friendly infrastructure, incorporating wastewater treatment facilities and solar power installations.

To balance the need for attracting high-quality investments in producing high-value-added products, meeting local market demands, promoting domestic circular economy initiatives and ensuring environmental sustainability, the Malaysian government has decided to end the implementation of the moratorium on manufacturing license applications for companies in the paper industry effective 15 March 2024. This strategic move enables new and existing investors to venture into high-end, value-added paper production, including specialty packaging, premium printing materials, and innovative eco-friendly products that cater to both domestic and global markets.

The industry’s outlook remains positive, with the global market for paper packaging materials expected to grow to US$ 493.5 Billion by 2027. 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.