Roadmap to boost Malaysian chemical sector's gross value add by RM40bil: Tengku Zafrul - MIDA | Malaysian Investment Development Authority
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Roadmap to boost Malaysian chemical sector’s gross value add by RM40bil: Tengku Zafrul

Roadmap to boost Malaysian chemical sector’s gross value add by RM40bil: Tengku Zafrul

04 Aug 2023

Malaysia’s Chemical Industry Roadmap 2030 (CIR2030) is expected to increase the sector’s gross value add (GVA) to the overall economy to more than 4.5 per cent by 2030 from 3.4 per cent currently.

This will imply an additional RM40 billion in value, said Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

He said the current contribution of the chemical output value to the industry is between RM80 billion and RM90 billion.

“With the CIR deviated policies and strategies put in place this will move up the value chain with the high value products and would add additional RM40 billion by 2030,” Tengku Zafrul said after CIR2030 launch here today.

To ensure it is rigorously implemented, CIR2030 boasts 10 enablers with key activities, milestones, KPIs, roles and responsibilities.

In his keynote address, Tengku Zafrul said there will be a dedicated governance team and task force to ensure the enablers and initiatives are tracked, monitored and implemented on time to meet the CIR2030 aspirations.

He said the roadmap outlines three major priority segments. They are base chemicals and intermediaries such as fertilisers as well as oleochemicals and C1 intermediates; plastics and polymers such as high-performance composites; as well as specialty chemicals, care chemicals, nutrition chemicals, electronic chemicals and construction chemicals.

“Each of these product segments been identified with specific strategies for growth based on its potential and future demand,” he added.

CIR2030 is not a standalone document. It will be complemented by the much-awaited New Industrial Master  Plan 2030 (NIMP 2030) to be launched this month.

The NIMP 2030, with its mission-based approach, is a national integrated plan for industrial transformation and resilient industrial development until 2030.

Its four missions of enhancing complexity, digitalisation and automation, pushing for net zero as well as safeguarding economic security and inclusivity provide the key fundamentals for future policy development and industry enablement.

Within the NIMP 2030, the chemical, petroleum products and petrochemicals sectors are provided for via 16 action plans that are all aligned to NIMP’s four  missions, including a specific focus on deepening Malaysia’s specialty chemical verticals.

“It is therefore critical for the industry to be aware of our policy direction as our future conversations on industrial development will centre around these missions and strategies to develop more complex and sophisticated  products in our manufacturing sector.

“In recent years, the chemical industry has experienced a substantial shift catalysed by key global megatrends, and by Covid-19 which introduced structural changes in demand patterns.

“The industry must now take into account the growing focus on environment, social and governance, which drives major changes to investment decision-making for companies to adapt and remain globally competitive,” Tengku Zafrul said.

Source: NST