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Malaysia Cement Industry 1H13

  • August 2013
  • -
  • Emerging Markets Direct Media Holdings
  • -
  • 30 pages

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Malaysia: Cement covers the sector overview, sector size, competitive landscape and environmental scanning for Malaysia. It also covers the market trends and outlook, installed capacity, cement consumption, cement production, cement trade, cement prices, construction sector trends, infrastructure spending trends and industry forecast, plus the profile, comparative matrix and SWOT analysis of the industry leading players: Lafarge Malayan Cement Berhad, Tasek Corporation Berhad and Cahya Mata Sarawak (CMS).The cement industry is one of the strategic industries of Malaysia. It acts as the feeder to several other industries like real-estate, construction and infrastructure. The industry witnessed a period of subdued growth during 2006-10. However, cement consumption has grown in the last two years owing to the development of key infrastructure projects under the 10th Malaysia Plan and Economic Transformation Programme (ETP).

The recent growth in demand for cement is driving companies towards capacity expansion. By the end of 2013, the total installed capacity in Malaysia is expected to increase by around 25%. Many companies have commissioned new projects for enhancing their existing capacity. Around 80% of cement produced in Malaysia is consumed by the domestic market itself and the remainder is exported. Indonesia, Singapore and Sri Lanka are the major export destinations. Annual cement consumption recorded a growth of more than 5% y/y in 2012 backed by strong demand arising from residential and civil construction sectors.

The outlook for the Malaysian cement industry is positive backed by stable domestic demand and government support for infrastructure development under the 10th Malaysia Plan and ETP. The major challenges in front of the Malaysian cement industry are rising fuel prices and rising transportation costs. The industry will also have to meet global pollution and emission standards which will take considerable amount of investment.

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