Plastic manufacturers exports to rise


Kenanga Research said investments in innovative packaging are crucial for efficient waste collection, sorting and recycling.

PETALING JAYA: Malaysian plastic manufacturers’ exports have seen a 10% on-year rise in orders in 2024, which they expect to sustain into 2025.

Exports are however expected to be at a slower level next year, with the help of the adoption of recycling technologies and gradual imposition of extended producer responsibility schemes to incentivise sustainable practices.

Kenanga Research stated demand for plastics remains firm from various sectors despite concerns about plastics impact on the environment, which has led the paradigm shift to managing plastic waste rather than eliminating them altogether.

This has led to increased circular economy initiatives and sustainable packaging solutions.

“Investments in innovative packaging are crucial for efficient waste collection, sorting and recycling. Companies like BP Plastics Holding Bhd and Thong Guan Industries Bhd have been gaining traction with their nano stretch films, while SLP Resources Bhd is seeing increased customer interest in its machine direction-oriented mono films,” the research house said.

It added SLP was actively promoting its sustainable packaging solutions in the region to capitalise on the demand for recyclable materials by manufacturers with customers in Europe and the United States.From a share investment perspective, Kenanga Research believes much of the negativity over the sector has been priced in and now has an “overweight” call on the sector despite the threat of more regulatory developments by this month or next.

Its top pick for the sector is Thong Guan for its inexpensive valuations and potential to capture more overseas orders.

The company’s expansion plans for premium products, such as nano stretch films, food wraps and some industrial bags (wicketed bread bags, oil/flour/sugar bags) is another plus.

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