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Over the next seven years, the roadmap will also focus on introducing new technology in the industry to create high-skilled jobs, as well as on increasing competitiveness, among five aspirations listed.
Malaysia's Ministry of Investment, Trade and Industry (MITI) launched the Chemical Industry Roadmap 2030 (CIR2030) on Friday (4 August 2023), with sustainability among its five core principles.
Explaining the need for the roadmap, Minister of Investment, Trade and Industry, Tengku Zafrul Aziz said: "The chemical industry has experienced a substantial shift catalysed by key global megatrends, changes in demand patterns, and the growing focus on ESG (environment, social & governance).
"The CIR2030 was crafted to address these major challenges, to help the industry adapt and remain globally competitive. This is where a clear roadmap is key towards increasing the Gross Value Add (GVA) of the industry to the overall economy from 3.4% today to more than 4.5% by 2030, or approximately RM40bn in added value. We are also targeting for our chemical industry to be ranked first in ASEAN in terms of FDI (foreign direct investment) inflow by 2030.
"In short, CIR2030 is key towards providing a sustainable growth path for the industry."
In his speech at the launch event, Minister Zafrul Aziz shared the following core principles of the roadmap:
- Increasing the value-add from building blocks through diversification into higher value-added products such as specialty chemicals;
- Enhancing industry integration between upstream chemical production and downstream industries, building local advantage and resilience;
- Increasing competitiveness of the chemical industry to improve export potential, while positioning Malaysia as a strong chemical hub within the Asia Pacific region;
- Improving the sustainability of the industry from production processes to end-product use, supporting Malaysia’s overall climate ambitions to reduce the carbon intensity of the economy, and enhancing the socioeconomic contribution of the chemical industry to the Malaysian economy, and
- Introducing new technology to advance the state of the overall chemical industry, creating a large base of high-skilled jobs.
Developed by MITI, in collaboration with the Malaysian Investment Development Authority, PETRONAS, the Chemical Industries Council of Malaysia, and industry stakeholders, the CIR2030 also outlines 22 strategic focus areas, and 10 key enablers for Malaysia to transform the chemical industry landscape over the next seven years. Additionally, eleven priority segments have been identified in base chemicals and intermediates; plastics and polymers, and specialty chemicals, where targeted investments, industrial development, and export programmes will be enhanced to support the CIR2030 implementation.
"The chemical industry is broad, supporting our daily lives through a wide range of products, including the daily toiletries, foods and pharmaceutical products that we consume. Chemicals are also present in batteries, mobile phones, cars, laptops, electronic devices, and even the fuel in our vehicles.
"Given this broad range, the CIR’s product segmentation was determined by established principles of assessment, based on market attractiveness, strategic relevance and its natural advantage to offer the most attractive development proposition for Malaysia," Minister Zafrul explained.
As shared by MITI, the CIR2030 is set to complement the New Industrial Master Plan 2030 (NIMP 2030) to be launched in August 2023. Within the NIMP 2030, the chemical, petroleum products, and petrochemicals sectors are provided for via several action plans that are all aligned to NIMP’s four missions, including a specific focus on deepening the country's specialty chemical verticals.
Overall, it was noted that the chemical industry is among Malaysia’s most valuable strategic industries, contributing 6% to GDP in 2022, and employing close to 293,000 workers (equivalent to 12.5% of the 2.6mn total manufacturing employment). The chemical and petrochemical sector alone is the third-largest contributor to Malaysia’s trade of manufactured goods, with strong forward linkages to other sectors such as E&E, automotive, agriculture, and pharmaceutical, MITI stated.
Photo: Minister Zafrul's Facebook
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