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Kertas, Percetakan dan Penerbitan

>Industri>Pembuatan>Kertas, Percetakan dan Penerbitan

Paper and
Paper-products

Malaysia’s paper industry’s performance remains steady with over 20 paper mills in the country featuring a production capacity of 1.9 million metric tonnes annually.

The three main sub-sectors within this industry in Malaysia are pulp manufacturing, paper & paper products, and printing & publishing. The production of paper is dominated by packaging paper activities such as kraft paper, testliner and medium paper. Prominent producers include GS Paper & Packaging, Muda Paper Mills and Pascorp Paper Industries.

Biomass is increasingly being used as a raw material to produce paper, apart from virgin pulp and wastepaper. Eco Palm Paper is a pioneer company in producing paper from empty fruit bunches (EFB).


The prospects in this industry is looking bright as Malaysia is attracting much interest from top global players looking to expand their business. It is estimated that Malaysia’s paper production capacity could jump exponentially from the involvement of such investors.

10%

Domestic Investments

(RM1.07 bil)

RM10.76 bil

Total Approved Investments
in 2019

80%

90%

Foreign Investments

(RM9.69 bil)

RM10.76 bil

Total Approved Investments
in 2019

10%

Domestic Investments

(RM1.07 bil)

90%

Foreign Investments

(RM9.69 bil)

47

Approved Projects

6,587

Job Opportunities

RM364.43 mil

Pulp and Paper sub-sectors recorded investments in 2019

Growth Opportunities Driven by New Technologies

Opportunities abound for investors in this industry as new applications and production techniques for paper and its components are being emerging. For example, apart from virgin pulp and wastepaper, paper can also be produced through the use of biomass.

Malaysia, which has oil palm plantations spanning 5.8 million hectares, offer a competitive and comparative advantage for companies producing paper from empty fruit bunch (EFB). Notably, paper production via biomass has garnered significant interest from large foreign industry players.

The paper, printing and publishing industry is moving into an interesting decade as many parts of the industry are advancing due to the rise of new technologies. This include:

  • Industry 4.0 elements such as sensors,
  • Waste to Energy Technology (Cogeneration Plants)
  • Zero Waste Management

Government Support

Companies involved in the producing corrugated medium paper, testliner, kraft liner, kraft paper or paperboards are eligible for the following tax incentives:

  • Pioneer Status (PS) with an income tax exemption of 70% of statutory income for 5 years
    OR
  • Investment Tax Allowance (ITA) of 60% of qualifying capital expenditure incurred within a period of 5 years. The allowance can be offset against 70% of statutory income in the year of assessment.

Although paper manufacturing in Malaysia is already highly-automated, there are still many potential areas for upgrading/modernisation. Local players are encouraged to upgrade and explore new and emerging technologies in order to sustain their operations. As an incentive, the Government introduced the Automation Capital Allowance (Automation CA) incentive and Industry4WRD initiatives to assist industry players in upgrading their machinery and equipment.

The Government also highly encourages local players to practice a zero waste policy by adopting environmentally friendly practices in their operations such as better waste management. This refers to waste water and solid waste that should be treated up to the national standards or repurposed towards contributing to the circular economy.

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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.

Manufacturing License Application Form (e-ML)

Our global presence means we are always ready for business. Engage and invest in Malaysia today.

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