GEORGE TOWN: NTPM Holdings Bhd
expects its overseas sales to contribute significantly to the group’s revenue for the financial year ending April 30, 2025 (FY25).
According to group chairman Lee See Jin, the sales growth will be generated from the Australia and United States markets.
The United States, for example, will likely turn to Malaysia to buy up tissue paper products following its recent imposition of a 25% tax on most China-made goods, he noted.
For FY25, the paper and personal care products manufacturer intends to ship approximately 1,500 tonnes of tissue paper products to the United States and Australia per month.
This is compared with NTPM’s tissue exports which were below 500 tonnes a year ago, he added.
Lee who is also NTPM managing director told StarBiz that “the group will spend about RM15mil to further automate its manufacturing facilities in Malaysia and Vietnam in FY25”.
With the persistent geopolitical tensions and adjustments from the aftermath of the Covid-19 pandemic, the group encountered inflationary pressure and volatile foreign exchange rates, hampering consumer confidence and the economic growth trajectory, he pointed out.
Lee said, “The business operations environment for the group in Malaysia and beyond remains very challenging.
“Barring any unforeseen circumstances, the group’s plan to return to the black should be achievable.”
Meanwhile, he said the current consumption of tissue paper products in Vietnam was between 1.75kg and 2kg per capita, while Malaysia’s consumption is 4.75kg.
Lee said the per capita consumption in Thailand and Vietnam is expected to grow by a single-digit percentage in FY25.
NTPM will also continue to expand and improve its distribution channels in Malaysia and abroad in its effort to grow further and enhance its market presence, he added.
“Our business strategy will focus on product innovation to differentiate NTPM’s product mix from competitors, which will help to drive our brand competitiveness and profit margins,” Lee explained.
In addition, the group will be expanding its personal care product segment in Malaysia, Thailand and Vietnam and use resources efficiently to produce cost-effective products.
He said NTPM would continue to improve its production and operation efficiencies to support sustainable business growth and adopt a new marketing position for recycled grade with eco-friendly products.
Furthermore, Lee believes that NTPM can leverage its production capacity to enhance business development, especially for the export markets.
“Barring any unforeseen circumstances, we expect that the group’s business will continue to be on an upward trajectory,” Lee pointed out.
The group’s annual production capacity in Vietnam and Malaysia stands at 160,000 tonnes.
“We have about 50% unused capacity to reinforce the group’s market position to explore new business opportunities and meet customers’ evolving needs domestically and internationally,” Lee said.
According to a Polaris Market Research report, the global tissue market which was valued at US$84.73bil in 2023, will grow at a 6% compounded annual growth rate (CAGR) to surpass US$143.14bil by 2032.
“In 2022, the Asia-Pacific region dominated the tissue paper market due to the high utilisation of tissue paper products in the region. This is mainly attributed to the growing disposable income of the middle-class population and changing lifestyles in developing countries,” it noted.
The report said the increasing demand for facial tissues and wet wipes among millennials in this region is also expected to drive market growth in the future.
“Moreover, the expanding chain of hotels and restaurants is a significant factor propelling the growth, as paper tissues are widely used in hotels to serve food.
“The North American region is expected to witness a high CAGR in the tissue paper market, primarily due to the increasing demand for biodegradable tissue paper products.
“The growing sales of sustainable and eco-friendly tissue paper products are the key factors driving market growth.
“Additionally, countries such as Canada and the United States have witnessed significant consumption of paper tissues, further fuelling the growth of the tissue paper market in the region,” the report said.
