Report of Malaysia Paper Industry

Year 2012

By The Malaysian Pulp and Paper Manufacturer Association

(MPPMA)

Malaysia Participants

1.  Mr Tan Chaik Phoay – Muda Paper Mills, Tasek

2.  Mr Wong Peng Khoon – Muda Paper Mills, Kajang

3.  Ms Lee Hooi Fung – Nibong Tebal Paper Mill

4.  Mr Mohamad Razi Bin Idris – Pascorp Paper

Industries

5.  Mr Chua Keat Lee – Malaysian Newsprint Industries

Malaysia Facts

•  Consists of : West & East Malaysia with 13 states and 3 federal territory

•  Area : 329,847 Square Kilometer

•  Length : West Malaysia 748 km (465 mi) SSE-NNW & 322 km (200 mi) ENE-WSW : East Malaysia ( Sabah )12 km (256 mi) E-W & 328 km (204 mi) N – S

: East Malaysia ( Sarawak ) 679 km (422 mi) NNE-SSW & 254 km (158 mi) ESE-WNW

•  Population ( 2012 ) : 29.2 Mil

•  Ethnic Groups : Malay , Chinese, Indian, Others

•  Capital City : Kuala Lumpur

•  GDP 2012: USD 472.9 bil; USD 16,186 per capita

•  Language: Bahasa Malaysia (official), English (widely used in business), Mandarin, Tamil and Iban

•  Local currency: Ringgit (MYR)

Source :- Encyclopedia of Nation

Malaysia Major Trade Partner’s

*

Source :- Malaysia Statistic Dept

Malaysia Major Export Country 2011

*

Source :- Malaysia Statistic Dept

*

Malaysia-Japanexporttradevalueisat79.87billionforyear2011

Malaysia Major Import Country 2011

Source :- Malaysia Statistic Dept

Malaysia-Japanimporttradevalueisat65.46billionforyear2011

*

Malaysia Major Export Country 2012

*

Source :- Malaysia Statistic Dept

*

Malaysia-Japanexporttradevalueisat63.59billionforyear2012uptoSept

Malaysia Major Import Country 2012

Source :- Malaysia Statistic Dept

*

Malaysia-Japanexporttradevalueisat48.46billionforyear2012uptoSept

Malaysia Paper Manufacturing Industry

Comprises 3 sub-sectors :

-  Paper Manufacturing

-  Paper Products

-  Printing and Publishing

Paper Mills In Malaysia

Major producers in Malaysia

Initial Start up capacity (‘000 Mt)

Capacity Today

(‘000 Mt)

Growth Multiple

(‘x)

Growth rate

MUDA (1964) 3 480 160.0 15,900%

NTPM (1979) 2 105 52.5 5,150%

Pascorp (1992) 55 240 4.4 336%

GSPP (1992) 150 285 1.9 90%

MNI (1999) 250 280 1.2 12%

SFI 150 165 1.1 10%

Total 610 1,555 2.6 155%

Paper capacity in Malaysia

Major capacity increased in Containerboard paper (+300,000 tons)

Source :- MPPMA

Paper – Supply & Demand

(‘Mil Tons)

Source :- MPPMA

Economic sectors supported by Paper Mills

Paper Mills Intermediate Users Industries / Consumers

Containerboard Packaging / Box Plants Packaging / boxes for Electrical & Electronic sectors (E&E), Solar Panels, Food & Beverages (F&B), Fast Moving Consumer Goods (FMCG), Textiles, Rubber gloves, Furniture, Pharmaceutical goods etc

Newsprints Publisher, Printers Consumers, education

Tissue or hygiene paper

Packers Hotels, Restaurant, Hospitals, End consumers

Printing & Writing Printers, Publishers Education, Office use

Wastepaper – Domestic Supply & Demand

Source :- MPPMA

(‘000 Tons)

Wastepaper Consumption By Types

Source :- MPPMA

(‘000 Tons)

Challenges faced by the industry

Ø Shortage of domestic wastepaper supply continues due to new capacities

Ø Quality of waste paper is getting deteriorated – High moisture and high out-throw

High imports of wastepaper

Source :- MPPMA

(‘000 Tons)

20% imports

30% imports

14% imports

Paper Recycling System Malaysia

Year 2012

By The Malaysian Pulp and Paper Manufacturer Association

(MPPMA)

Paper Recycling System in Malaysia

ONP OLD NEWSPAPER

B&W OFFICE A4 PAPER

OMG OLD MAGAZINES

OCC OLD CORRUGATED

Household / Residential

Commercial Centres

Newspaper Publishers

School’s Network

Charity’s Association

Industrial Factories

Town Councils

Major Recovered Paper Sources

4 Major Recovered Paper Classification

Included Leftovers from publishers,

Weekly / monthly leftovers from publishers, books,

Waste paper from printers, office shredded paper,

Cardboard boxes, trimmings waste from electrics appliances,

packaging manufacturers, textiles, fruits…etc

Paper Recycling System in Malaysia

Household / Residential

Commercial Centres

Newspaper Publishers

School’s Network

Charities Association

Industrial Factories

Town Councils

Major Recovered Paper Sources

Pap

er Mills

Main

Co

llectors / P

ackers / Wh

olesaler

( Most of them

have their own baling m

achine)

Current Distribution of Recovered Paper

Sm

all Co

llectors / P

ackers (N

o B

aling

Mach

ine)

(Most of them

own/rent 3M

T Lorries)

Confidential Documents

¥4-5 ¥7-8 ¥11-12

* Price can be varies due to move of International Price

Incentive / Rebate Support

Collection Activities to

School / Charities

Paper Recycling System in Malaysia

HighVolumeofCollecIon/Recovery

Higher Collection / Recovery of Recovered Paper By States

Paper Recycling System in Malaysia

Small Collectors / Packers (No Baling Machine)

What We Learn From This Training

•  JPA & JRPA have a very active roles in promoting the recycling system in Japan •  Active association memberships as advisor roles in promoting recycling program in

each of the designated areas. •  A strong / active action / Implementation Group such as Paper Recycling Promotion

Center by JRPA •  Noted that Japan have a very details classification of recycle waste for the residential,

business and industrial communities / channel (Implemented since 1974) •  Effective Recycling Message to the Public / Residences with A Good Government

Support & Local Municipals •  Japan Local municipals providing the facilities to the communities to ensure the

success of the recycling system. •  Good & Pro-active cooperation between paper mills and recycling industries in

sharing information and relationship business trust. •  A very matured legal system of Paper Recycling system established since 1974 or

during the Pre-Edo •  We need an on-going process to promote recycling program in all levels •  Paper mills in Japan have created a very strong quality control of waste at

wholesalers level and then to the collectors (reduce the incoming check of waste at paper mill)

What can we work/promote from now?

1.  Exploring more public awareness of recycling of waste in all channels which can provide immediate impact towards the recovery of waste collection and quality incoming of the waste ( Example : schools, industrials, commercial, and residence areas)

2.  Recently, some of the waste paper have been exported out from Malaysia which was reported by local customs. This definitely are some of the potential issue facing which reduce the rate of local collection recovery rate. (Working with local customs authorities to reduce the exporting of waste due to local shortage)

3.  Paper mills in Malaysia, receiving most of the left-over / poor quality of in-coming waste from the wholesaler ( mainly OCC segment). We need get more guidelines or process details to overcome the in-coming from the wholesalers.

4.  Malaysia’s waste paper specification need to be revise to Japan classification which can have a significant improvement on the quality of the waste papers collected. (Pre-print brochures, leaflets, sharing information to household, PTA…etc)

5.  Looking at under-recovered areas / states in Malaysia which having a significant growth due to the developments by the state government ( East Malaysia : Sabah & Sarawak)

Possible cooperation/support from Japan?

1.  To share more new ideas or technical knowledge in improving manufacturing yield within 2-3 years from now ( All paper production makers ). Targeting to reach 90 to 94% yield.

2.  Malaysia at this moment still imports a significant volume of waste paper from Europe, USA and Australia. Therefore, with the excess of waste papers currently available which we hope Japan can provide some incentives to support us while we are still developing the strategy to recover more waste from the local market.

3.  Japan have a well establishment of paper recycling system since 1974 till today which we hope we can be get more details pertaining the set-up which we can use to be implement / as a guidelines within the associations , members, communities and with our government bodies.

4.  Existing methodology or quality checks implemented in Japan which can be use to assist to reduce our moisture issues and prohibited materials from the wholesalers.

5.  Setting up WTE (Waste To Energy) plant for all paper mills by providing special grant to set-up the facilities

6.  Possible to assist us or to provide a TIMELINE details how to set up A very establish paper recycling system ( Example : What we must do 1st before we move to 2nd Step)

Thank You

Year 2012

Keep Malaysia BeautifulFocused on recycling, recycling behaviours, recycling

processes, and the circular economy in Malaysia

We look forward to hearing from you soon!

adrienna@keepmalaysiabeautiful.org