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Jul 13, 2023 256 likes •638 views

SEMINAR ON OLEOCHEMICAL INDUSTRY IN MALAYSIA: Downstream Expansion & Sustainability C H E M I C A L A N D A D V A N C E D M A T E R I A L I N D U S T R I E S D I V I S I O N 1 CONTENT OUTLINE: About MIDA Malaysian Investment

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SEMINAR ON OLEOCHEMICAL INDUSTRY IN MALAYSIA:

Downstream Expansion & Sustainability

C H E M I C A L A N D A D V A N C E D M A T E R I A L I N D U S T R I E S D I V I S I O N

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Invest in Malaysia > Your Profit Centre in Asia

CONTENT OUTLINE:

  • About MIDA
  • Malaysian Investment Performance
  • Chemical & Advanced Material Industries Division
  • A Global Scenario of Oleochemical Industry
  • Oleochemical Industry In Malaysia
  • Oleochemical Projects Approved by MIDA
  • Oleochemical Value Chain in Malaysia
  • Current Policy
  • Challenges

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Invest in Malaysia > Your Profit Centre in Asia

SERVICES PROVIDED by MIDA

Services (Initial Stage)

  • Meetings with State Authorities
  • Business matching with Malaysian companies
  • Visit to companies/suppliers
  • Visit to potential locations

Evaluating & Granting Approval

  • Manufacturing License
  • Tax Incentives
  • Expatriate Posts
  • Import Duty Exemptions

Project Implementation Stage

  • Handhold and assist investor until

project is implemented 3

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Invest in Malaysia > Your Profit Centre in Asia San an Jos Jose Los Los Ang Angeles New w York

  • rk

Bos Boston

  • n

Stoc

  • ckholm

holm Fr Frank ankfur furt Muni unich ch Milan an Pari aris London London Duba ubai Mum umba bai Guangzhou uangzhou Taipei aipei Shanghai hanghai Seoul

  • ul

Os Osak aka Tok

  • kyo

yo Sydney ydney

22 Overseas Centres

Chi Chica cago go Hous Houston

  • n

Singapore ngapore

MIDA WORLDWIDE NETWORK

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Invest in Malaysia > Your Profit Centre in Asia ALOR SETAR KOTA BHARU IPOH KOTA KINABALU KUCHING JOHOR BAHRU KUANTAN SEREMBAN MIDA HEADQUARTERS MELAKA PENANG KUALA TERENGGANU

MIDA’S STATE OFFICES

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NKEAs selected which can materially impact economic growth Greater KL Agriculture Palm oil Comms Content Infrastructure Education Electrical & electronics Oil, gas & energy Tourism Wholesale and retail Financial services Business services Healthcare

ESTABLISHMENT OF 12 NATIONAL KEY ECONOMIC AREAS (NKEAs)

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Invest in Malaysia > Your Profit Centre in Asia

Sector 2012 2013 Percentage of Growth (%) US$ million Agriculture, Forestry and Fishing 104 328 215.7 Mining and Quarrying 3,146 3,643 15.8 Manufacturing 4,282 4,762 11.2 Construction 68 292 328.8 Services 2,568 3,647 42.0 TOTAL 10,169 1,2671 24.6

Source: DOSM

Manufac nufacturing turing secto tor con

  • nti

tinues nues to to b be th the largest

rgest contributor contributor

to to FDI inflo lows

FDI INFLOWS TO MALAYSIA BY SECTOR

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Invest in Malaysia > Your Profit Centre in Asia

2012: USD 54 billion

2013: USD 66 billion

Increased by

29%

USD 66 billion

Approved investments

A new record for approved investments

5,669

Projects Approved

192,000

Jobs Created

TOTAL INVESTMENTS APPROVED IN 2013

72.5 : 27.5

Domestic-to-Foreign investment ratio

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Invest in Malaysia > Your Profit Centre in Asia

2.6 2.1 2.0 1.3 1.2 1.1 0.6 0.4

0.4 0.4

1.3 3.0 2.0 1.9 1.8 1.7 1.3 1.1 0.7 0.6

0.4 0.4

0.9

Machinery & Equip.

E&E, Transp ansport,

  • rt, Petr

trol

  • leum

eum & Chemica mical l Industr stries ies con

  • ntri

tribu bute te th the lion

  • n’s share

are of

  • f approve
  • ved

d invest vestments ents in 2013

2012 2013

Basic Metals Petroleum E&E Rubber Food Chemical Fabricated Metals Transport Petroleum E&E Chemical Basic Metal Scientific & Measuring Equip. Non- Metalli c Food Fabricate d Metal Rubber

USD Billion

Others

USD 15 bil. USD 13 bil.

Transport

Machinery & Equip.

Others Plastic

MANUFACTURING SECTOR

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Invest in Malaysia > Your Profit Centre in Asia

CHEMICAL AND ADVANCED MATERIALS INDUSTRIES DIVISION

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Invest in Malaysia > Your Profit Centre in Asia

CHEMICAL & ADVANCED MATERIALS

CHEMICAL & CHEMICAL PRODUCTS

OLEOCHEMICAL ADVANCED MATERIALS

PLASTICS

PETROLEUM PRODUCT INCLUDING PETROCHEMICAL

Subsectors under the Purview of the Division

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Invest in Malaysia > Your Profit Centre in Asia

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24.62 19.22 1.6 0.9 0.91 0.53 0.52 1.66

0.00 5.00 10.00 15.00 20.00 25.00 30.00 Indonesia Malaysia Thailand Colombia Nigeria PNG Ecuador Others Million tonnes

Source: MPOB website, 2013 Statistics, Oil World Statistic Update (March 2013)

Major World Producers of Palm Oil (2013)

Total global crude palm oil production in 2013 : 50.47 million tonnes

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Opportunities

Rising cost of doing business & raw materials in Europe Palm oil is proven to be healthy and trans fats free High demand for sustainable & bio gradable products Commitments towards the Responsible Care Initiative with regulations under REACH Programme Natural/plant based products, greener alternatives to petrochemical

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Global Scenario

  • Significant expansion in production of fatty acid

and fatty alcohol capacities in the Asia region.

  • Asia has the highest capacity in the world of

which 65% comes from SEA region (Malaysia & Indonesia)

  • Major oleochemical producers in the world

market : KLK, Oleon, Musim Mas, Croda, Emery, IOI, Wilmar.

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Major Producers of Basic Oleochemical in the world

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Oleochemical Industry in Asia

  • Asia creates large market for Oleo Industry

major consumer & producer of oleochemical

  • products. 68% of the world consumption and

60% of world production.

  • Vertical Integration

Large plantations have started to invest in downstream feedstock processing

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Plantation companies who have ventured into downstream oleochemical activities through Joint Ventures

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OLEOCHEMICAL INDUSTRY IN MALAYSIA….

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Source : Economic Reports/Bank Negara Annual Report, Malaysia 11/12

1970s 1980s Today

Resource-Based Food Industries Started producing basic Oleo Innovation, R&D Driven Specialty Oleo Chemical Derivatives

By 2020

One of the largest basic oleo chemical producers with 20%

  • f global production

SUCCESS STORY – PALM BASED OLEOCHEMICAL INDUSTRY

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  • Comprises of the basic oleo chemical and oleochemical

derivatives subsector.

  • Malaysia is the largest producer of oleochemicals in the

world : 20% of global capacity.

  • Almost 16 oleochemical plants are established in Malaysia.
  • Major Home Grown Players : IOI, KLK, Emery, Natural

Oleochemical, Oleon, FGV.

  • Malaysia has the raw material but still lack on the

technology innovation.

  • Related supporting regulation bodies;
  • MPIC
  • MPOB
  • MPOC

Oleochemical Industry In Malaysia

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Oleochemical Projects Approved by MIDA

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Approved Oleochemical Projects in 2013

Domestic Investment : RM333 Million Foreign Investment : RM149 Million

283 Job Opportunities

4 Projects RM482 Million

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Approved Oleochemical Projects From January- May 2014

Domestic Investment : RM6.2 billion Foreign Investment : RM7.6 billion

2,791 Job Opportunities

8 Projects RM 13.8 billion

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OLEOCHEMICAL VALUE CHAIN IN MALAYSIA

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FEEDSTOCK BASIC DERIVATIVE SPECIALTY CONSUMER

Oleochemical Value Chain

MAJOR OPERATING COMPANIES IN MALAYSIA

Plantation /Millers ME,Fatty Acid, Fatty Ester, Glycerine

PRODUCTS

Sulfo Fatty Acid Ester, Alkyl Chlorides, Fatty Acid Ethoxylates

EGMS, Methyl Ester Sulphonate (MES) Methyl Ester

Food Industry, Toiletries Confectionary, Pharmaceutical Oil & Gas, Dairy Products

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Existing and Emerging Applications

Bio lubricants Surfactants * Agro Chemicals Glycerol Additives Biopolyols Surfactants Soaps and Detergents Cosmetics Food Emulsifiers

EMERGING

EXISTING

* better improved performance

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TAX INCENTIVE

Pioneer Status (PS) Income Tax Exemption 70 % or 100 % for 5 or 10 years Investment Tax Allowance (ITA) 60 % or 100 % on qualifying capital expenditure for 5 or 10 years Second Round

  • f Incentive for

resource based industry

production > 100 MT per day, comply to the EIA (Environmental Impact Assessment)

CATEGORY:

  • A. General List
  • IV Manufacture of Palm Oil Products and their Derivatives; Oleochemical or
  • leochemical derivatives or preparations.
  • B. Small Scale Companies List
  • V. Manufacture of Oil Palm products and their derivatives; processed products from

palm oil / processed products from palm from biomass/waste/by product

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Challenges

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Thank you

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PROMOTED INDUSTRY

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Global Oleochemical capacity by Region from 2005- 2013 (000’ tonnes)

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MALAYSIA HAS SIGNED SEVEN (7) BILATERAL FTAs

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Invest in Malaysia > Your Profit Centre in Asia

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  • 20 Public And 21 Private Universities :-

(6 Chemical Engineering & UKM has a specific course on Oleochemicals)

  • 400 Colleges, Polytechnics, Industrial Training Institutes and

Private Colleges

  • 7 reputable foreign University branch campuses in Malaysia

 University of Nottingham Malaysia  Curtin University Sarawak  University of Southampton Malaysia  Newcastle University Medicine Malaysia  Heriot-Watt University Malaysia  Swinburne University Of Technology, Sarawak  Monash University Malaysia (source: MOHE 2013)

HUMAN CAPITAL