Malaysia’s chemical fiber industry relies on exports to promote development

In recent years, Malaysia’s textile industry has developed rapidly. In 2014, its textile and garment exports reached US$3.1 billion. Textile and garment exports account for 2% of Malaysia’s total manufacturing exports, ranking 11th. From 2012 to 2014, Malaysia’s textile imports were US$2.057 billion, US$1.602 billion, and US$1.503 billion respectively, showing a year-by-year decline trend, with an average annual decline rate of 14.52%; exports were US$2.071 billion, US$1.841 billion, and US$1.73 billion respectively. billion, declining year by year at an average annual rate of 8.6%.
From the perspective of import and export of chemical raw materials, Malaysia is self-sufficient in PTA and MEG. From 2012 to 2014, Malaysia’s PTA import volume decreased year by year, respectively to 97,000 metric tons, 60,000 metric tons, and 65,000 metric tons (a decrease of 32.99% from 2012); PTA export volume also decreased year by year, to 136,000 metric tons, and 138,000 metric tons respectively. Metric tons, 85,000 metric tons (a decrease of 37.5% compared with 2012). During the same period, Malaysia’s MEG export volumes increased year by year, reaching 21,000 metric tons, 31,000 metric tons, and 37,000 metric tons respectively (an increase of 76.19% compared with 2012); MEG import volumes were 13,000 metric tons, 13,000 metric tons, and 17,000 metric tons respectively (an increase of 76.19% compared with 2012). annual growth of 30.78%).
In terms of chemical fiber production capacity and output, from 2012 to 2014, the operating rate of Malaysia’s chemical fiber production capacity was relatively stable, about 83% to 86%; the total chemical fiber output decreased slightly, to 520,000 metric tons, 514,000 metric tons, and 502,000 metric tons respectively. . Among them, the output of polyester yarn was 384,000 metric tons, 383,000 metric tons, and 374,000 metric tons respectively; the output of polyester cotton was relatively stable, hovering in the range of 99,000 metric tons to 101,000 metric tons; the output of polyamine yarn decreased year by year, to 35,000 metric tons respectively. , 31,000 metric tons, 30,000 metric tons.
From the perspective of import and export of chemical fiber products, from 2012 to 2014, Malaysia’s total chemical fiber imports increased year by year, reaching 39,000 metric tons, 43,000 metric tons, and 48,000 metric tons respectively (an increase of 23.08% compared with 2012). Among them, the import volume of polyester yarn was 15,000 metric tons, 18,000 metric tons, and 22,000 metric tons respectively; the import volume of polyester cotton was 20,000 metric tons, 22,000 metric tons, and 23,000 metric tons respectively; the import volume of polyamine yarn remained at 3,000 metric tons. Change. Overall, Malaysia’s polyester cotton imports account for approximately 51% of its total imports of chemical fiber products. The main importing countries and regions of Malaysia’s chemical fiber products are mainland China, followed by Taiwan, Thailand, South Korea, and Indonesia. The amount of chemical fiber imported from mainland China accounts for about 39% of Malaysia’s total chemical fiber imports. From 2012 to 2014, the amount of chemical fiber imported by Malaysia from mainland China increased year by year, reaching 15,000 metric tons, 16,000 metric tons, and 19,000 metric tons respectively (an increase of 26.67% compared with 2012).
From 2012 to 2014, Malaysia’s total chemical fiber exports showed an oscillatory growth trend, reaching 367,000 metric tons, 362,000 metric tons, and 390,000 metric tons respectively (an increase of 6.26% compared with 2012). Its chemical fiber products are mainly exported to the United States, Japan, Turkey, etc. nation. Domestic sales volume decreased year by year, reaching 195,000 metric tons, 191,000 metric tons, and 160,000 metric tons respectively (a decrease of 17.95% compared with 2012). Factors contributing to this situation are due to capacity reductions in Malaysia’s major textile industries.
At present, Malaysia’s chemical fiber industry mainly faces three major challenges: First, due to insufficient operating rates of chemical fiber production capacity and unstable market conditions, the chemical fiber industry has long-term overcapacity; second, due to the market downturn, fierce market competition has led to low-priced sales of products, which have reduced profits. At the same time, it is easy to cause trade frictions; third, upstream raw material prices fluctuate greatly, causing uncertainty and increasing risks in industrial operations.
Judging from the current situation, Malaysia’s domestic market for chemical fiber, textiles and garments is small and must rely on exports to promote development. The industry is able to maintain its competitiveness due to the production of differentiated products and increased added value. Malaysian companies should effectively adopt some strategies to deal with the challenges, including expanding product diversification by combining with other related industries, moving to countries with lower production costs, and making good use of the advantages of free trade agreements to promote trade development.