Market Overview

The Malaysia corrugated packaging industry in Malaysia has experienced tremendous growth over the past decade driven by increase in e-commerce and food & beverage sectors. Malaysia being an export oriented economy, Malaysia Corrugated Packaging serves as a critical component in safely transporting manufactured goods to international markets. The industry generates over RM 5 billion in annual revenue and employs more than 20,000 people across the country according to the Federation of Malaysian Manufacturers (FMM).

Expansion of E-Commerce Drives Demand

The exponential growth of e-commerce in Malaysia has significantly boosted demand for corrugated packaging products from online retailers. Major e-tailers like Lazada and Shopee require a reliable and sustainable packaging solution to ship various items ordered online. Due to their lightweight and protective characteristics, corrugated boxes have become the packaging of choice. Leading players in the industry like Edphil Packaging and Jiazhi Packaging have capitalized on this growth by launching customized e-commerce packaging lines.

Food & Beverage Sector Key Consumer

As Malaysias's food and beverage processing industry expands to meet the needs of a growing population as well as for exports, demand for packaging from this segment continues to increase steadily. Whether it's boxes for canned food, cartons for drinks or trays for fresh produce - corrugated packaging suits all types of food products. Major players like Nestle, F&N and Jacob's Dairy have long-term procurement contracts with domestic corrugated manufacturers to package their brands. Kiwitsu Corrugated has a special range of FDA approved food grade paperboards.

Recyclability drives Sustainability Goals

With rising environmental awareness, recyclability has become an important purchasing factor for brands as well as end consumers. Corrugated packaging being made from renewable resources like paper lends itself naturally to closed-loop recycling systems. Almost all corrugated waste generated can be recycled and transformed into new packaging. Players like Ecopak and Packaging One have invested in modern recycling plants to further their sustainability credentials. The Government is also supporting recycling initiatives through incentives and regulations.

Machinery Upgrades & Automation

To maintain technological edge and improve operational efficiency, corrugated packaging producers are constantly upgrading their plant and machinery. Automated corrugators from BHS Corrugated and Mitsubishi Heavy Industries offer higher outputs while reducing resource wastage. Post processing machines from Bobst and Heidelberg optimize production workflows. SIN HENG's new fully automated plant in Johor utilizes Industry 4.0 technologies like IoT, robotics and predictive analytics for optimized performance.

Regional Presence & Exports

Larger corrugated packaging conglomerates have expanded production capacity beyond Malaysia into neighboring markets like Indonesia, Vietnam and Philippines to better serve customers in the ASEAN region. Efficient plants with latest equipment not only fulfill growing domestic volume but also mass produce high quality corrugated for exports worldwide. Leading brands maintain stringent quality and certification standards to gain approval of multinational retailers and manufacturers. Kepong Packaging's overseas operations are GMP and FSSC 22000 certified.

Talent Crunch & Skill Development

Availability of skilled workforce remains a challenge as the industry grows and evolves. Operating modern automated facilities requires technical experts in areas of machinery maintenance, process engineering, quality control among others. Companies partner with technical institutions to design customized training programs aimed at developing industry-ready talent pipeline. Federal government also sponsors technical upskilling initiatives under PSMB and HRDF to build local competencies in manufacturing technologies.

Overall, Driven by thriving e-commerce and robust food processing sectors, Malaysia corrugated packaging industry is well positioned for continued growth. With competitive production costs and strategic location, domestic players are effectively competing in global export markets as well. Focus on cutting-edge automation, sustainability practices and talent development will help sustain this growth momentum in the coming years. The industry is optimistic of achieving RM 10 billion annual turnover by 2025.

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