Malaysia Textile Industry Faces Three Challenges: Relying On Exports To Promote Development

In recent years, Malaysia

The industry developed rapidly, and its textile and its textile industry in 2014.

Exports amounted to US $3 billion 100 million.

Textile and garment exports account for eleventh of the total exports of Malaysia's manufacturing sector, 2%.

From 2012 to 2014, the import volume of textiles in Malaysia was 2 billion 57 million US dollars, 1 billion 602 million US dollars and 1 billion 503 million US dollars respectively, showing a declining trend year by year, with an average annual decline rate of 14.52%, and the export volume was 2 billion 71 million US dollars, 1 billion 841 million US dollars and 1 billion 730 million US dollars respectively, with an annual decline of 8.6% per year.

From the perspective of import and export of chemical raw materials, Malaysia's PTA and MEG can be self-sufficient.

From 2012 to 2014, the import volume of PTA in Malaysia decreased year by year, at 97 thousand tonnes, 60 thousand tonnes and 65 thousand tonnes respectively (compared with 32.99% in 2012), and the PTA export volume also decreased year by year, at 136 thousand tonnes, 138 thousand tonnes, 85 thousand metric tons (down 37.5% from 2012).

In the same period, the export volume of MEG in Malaysia increased year by year, which was 21 thousand tonnes, 31 thousand tonnes, 37 thousand tonnes (76.19% higher than in 2012), and the import volume of MEG was 13 thousand tonnes, 13 thousand tonnes, 17 thousand metric tons (up 30.78% from 2012).

From the aspect of productivity and output of chemical fiber, from 2012 to 2014, Malaysia

The start up rate of production capacity is relatively stable, about 83% to 86%, and the total output of chemical fiber decreases slightly, which is 520 thousand tonnes, 514 thousand tonnes and 502 thousand tonnes respectively.

Among them, the output of polyester yarn was 384 thousand tonnes, 383 thousand tonnes, and 374 thousand tonnes respectively. The output of polyester cotton was relatively stable, lingering in the range of 99 thousand tonnes to 101 thousand tonnes, and the yield of polyamine decreased year by year, 35 thousand tons, 31 thousand metric tons, 30 thousand metric tons respectively.

From the point of view of the import and export of chemical fiber products, from 2012 to 2014, the total of Malaysia chemical fiber

The volume is increasing year by year, at 39 thousand tonnes, 43 thousand tonnes and 48 thousand tonnes respectively (compared with 23.08% in 2012).

Among them, the imports of polyester yarn were 15 thousand tonnes, 18 thousand tonnes and 22 thousand tonnes respectively, and the imports of polyester cotton were 20 thousand tonnes, 22 thousand tonnes, 23 thousand tonnes, and the imports of polyamine remained unchanged at 3 thousand metric tons.

Overall, Malaysia's polyester cotton imports account for about 51% of its total imports of chemical fiber products.

The main importing countries and regions of Malaysia chemical fiber products are mainland China, followed by China's Taiwan, Thailand, Korea and Indonesia.

The amount of chemical fiber imported from China accounts for 39% of the total imports of Malaysia chemical fiber.

From 2012 to 2014, the volume of chemical fiber imported from Malaysia increased year by year, which was 15 thousand tonnes, 16 thousand tonnes and 19 thousand tonnes respectively (compared with 26.67% in 2012).

From 2012 to 2014, the total export volume of Malaysia chemical fiber showed an oscillating growth trend, which was 367 thousand tonnes, 362 thousand tonnes, 390 thousand tonnes (6.26% higher than 2012), and its chemical fiber products were mainly exported to the United States, Japan, Turkey and other countries.

Internal sales decreased year by year, respectively, at 195 thousand tonnes, 191 thousand tonnes and 160 thousand tonnes (down 17.95% from 2012).

The reason for this is the capacity reduction of the main textile industry in Malaysia.

At present, the chemical fiber industry in Malaysia faces three major challenges: first, the lack of chemical fiber production capacity and the unstable market situation, and the long-term overcapacity of the chemical fiber industry; two, because of the sluggish market, fierce competition in the market leads to a low price of products, and at the same time, it is easy to cause trade friction while the profit is low. Three, the fluctuation of upstream raw material prices fluctuates greatly, resulting in the uncertainty and risk of industrial operation.

Judging from the current situation, the domestic market of chemical fiber, textiles and garments in Malaysia is small and must rely on exports to promote development.

The industry is able to maintain its competitiveness due to the upgrading of differentiated products and added value.

All enterprises in Malaysia should take effective strategies to cope with the challenges, including expanding product diversification through other related industries, pferring to lower cost production countries, making good use of the advantages of free trade agreements, and promoting trade development.