Malaysia Bulk Chemicals Market By Type (Inorganic, Organic), By End User Industry (Construction, Automotive, Healthcare, Food & Beverages, Agriculture, Others), By Region, Competition Forecast & Opportunities 2018-2028

The Malaysia Bulk Chemicals Market is anticipated to grow significantly in the projected period, 2024- 2028, driven by the increasing demand from the construction industry. In 2022, the value of construction work by the public sector in Malaysia was valued at around USD5.86 billion.

The Malaysia Bulk Chemicals Market is expected to expand during the projected period due to increasing demand from the construction sector, thanks to rapid urbanization and increased investment in residential and commercial projects. According to the 12th Malaysia Plan, the Malaysian government is making efforts to provide 500,000 affordable homes. For instance, in June 2022, nearly 68,000 homes under the Residensi Wilayah Keluarga Malaysia project received approval for construction.

In addition, these chemicals help in the production of fertilizers, significantly raising crop yield per acre of land, thereby propelling the growth of the market in the upcoming years.

The Malaysia Bulk Chemicals Market is dynamic and competitive, that offers opportunities for growth and innovation. The market players are focusing on expanding their product portfolio, enhancing their quality standards, improving their distribution network, and increasing their market share. Along with this, merger and acquisition activity in the bulk chemicals market enhances companies' presence in the country, as these acquisitions help companies better serve their customers and meet the growing demand for bulk chemicals in Malaysia in the forecast period.

Rising Demand from the Automotive Industry

Bulk chemicals are used in the automotive industry, usually in the manufacturing and assembly processes of automotive components. Bulk chemicals are used in the preparation of chemicals that work as adhesives and sealants, helping to bond various parts, including body panels, interiors, and electrical components. These chemicals offer excellent bonding strength, durability, and resistance to vibrations and environmental conditions, ensuring the structural integrity of vehicles.

Additionally, bulk chemicals are also used in the production of lubricants and cutting fluids, which are employed in machining operations to enhance efficiency, minimize friction, and extend the lifespan of machinery and tools used in automotive production. The automotive industry extensively utilizes polymers and plastics for lightweighting, design flexibility, and improved fuel efficiency. Bulk chemicals are crucial in the production and modification of polymer materials used in automotive components such as bumpers, dashboards, door panels, and interior trims. Additives like plasticizers, flame retardants, and UV stabilizers are incorporated to enhance properties such as impact resistance, flame resistance, weatherability, and color stability.

Bulk chemicals play a significant role in providing protective coatings and finishes for automotive surfaces. Bulk chemicals are used as raw materials for the production of paints, primers, clear coats, and anti-corrosion coatings that are applied to vehicle exteriors and interiors to enhance appearance, durability, and resistance to environmental factors. These chemicals offer protection against rust, UV radiation, chemicals, and scratches. In addition, coatings such as hydrophobic and self-cleaning coatings are gaining popularity, providing advanced functionality and ease of maintenance for automotive surfaces. Moreover, flame retardants are incorporated into automotive interiors to improve fire resistance and comply with safety regulations. Functional additives made from bulk chemicals, such as impact modifiers, stabilizers, and reinforcements, are employed in plastic components to enhance impact resistance, heat resistance, dimensional stability, and overall safety performance.

For instance, BASF provides bulk chemicals that are used in the production of additives and polymeric materials which are utilized in the automotive interiors and exteriors parts.

Moreover, bulk chemicals are used in waste management processes, including the treatment and disposal of medical waste. Chemical disinfectants, sterilization agents, and waste neutralizers are employed to ensure the safe handling and disposal of potentially hazardous materials. These chemicals play a critical role in preventing the spread of infections and maintaining a clean and safe environment for healthcare workers, patients, and the community. Along with this these chemicals help in eliminating pathogens, bacteria, and viruses from surfaces, medical equipment, and healthcare facilities. Proper use of bulk chemicals in hygiene practices plays a vital role in reducing the risk of healthcare-associated infections and ensuring optimal patient care.

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For instance, Ministry of Health of Malaysia and the Department of Environment Malaysia have revised the current policies and guidelines to control infectious disease and handling clinical waste.

Therefore, the rising demand from automotive and healthcare sector is expected to increase the growth of Malaysia Bulk Chemicals Market in the projected years.

Growing Demand from Construction Industry

Due to rapid infrastructure development, urbanization, and increased investment in residential and commercial projects, the construction sector in Malaysia has experienced significant growth. Bulk chemicals are extensively used in the construction industry to enhance the properties of concrete and cementitious materials. Chemical admixtures, such as plasticizers, superplasticizers, and water reducers, are added to concrete mixes to improve workability, reduce water content, and enhance strength and durability. These additives enable the production of high-performance concrete, which is crucial for infrastructure projects and construction in challenging environments. Additionally, chemicals like accelerators and retarders are utilized to control the setting time of concrete, ensuring efficient construction processes. Moreover, waterproofing is a critical requirement in construction to prevent water intrusion, which can lead to structural damage and deterioration. Bulk chemicals are used in the manufacturing of waterproofing membranes and coatings that are extensively used to provide effective protection against moisture ingress. These chemicals create a barrier that safeguards structures, including basements, roofs, and walls, from water damage, thus ensuring the longevity and integrity of the building. Furthermore, adhesives and sealants are used for various applications, including bonding, sealing, and filling gaps in the construction sector. Bulk chemicals are used in the production of epoxy resins, polyurethane adhesives, and silicone sealants that are widely used in the installation of flooring, tiles, glass panels, and other building components. These chemicals offer excellent adhesion, durability, and weather resistance, contributing to the overall quality and longevity of construction projects.

For instance, the Malaysian government plans to spend USD3.9 billion on transport infrastructure, specifically to build and upgrade roads and highways and upgrade existing roads, airports, and ports.

Moreover, bulk chemicals play a crucial role in improving the energy efficiency of buildings through insulation materials. Chemical foams, such as expanded polystyrene (EPS) and polyurethane (PUR) foam, made from bulk chemicals, are widely used to provide thermal insulation, reducing heat transfer, and improving energy conservation. These materials enhance the overall comfort and reduce the energy consumption of buildings, contributing to a more sustainable built environment. Thus, the increasing demand from the construction sector dominates the growth of the Malaysia Bulk Chemicals Market in the projected period.

Increasing Demand from the Agriculture Sector

Malaysia is also an agricultural country, with valuable crops such as palm oil, rubber, and cocoa playing an important role. To meet the increasing demands for food and ensure efficient crop cultivation, the industry relies on various inputs, including bulk chemicals. Bulk chemicals play a critical role in crop protection and pest management, ensuring the health and productivity of agricultural crops. Agrochemicals like pesticides, including herbicides, insecticides, and fungicides are widely used to control weeds, pests, and diseases that can significantly impact crop yield. Moreover, bulk chemicals are used in the production of fertilizers, which help enhance the production capacity of the crops. Along with this, bulk chemicals also play a role in soil amendments, pH adjustment, and organic matter management, contributing to sustainable soil health and improved crop productivity.

For instance, PETRONAS Chemicals Group Berhad produced ammonia, which is used in the production of urea, diammonium phosphate (DAP), mono ammonium phosphate (MAP), ammonium sulfate (AMSUL), urea ammonium nitrate (UAN).

Therefore, all these factors dominate the market growth in the forecast years.

However, bulk chemicals are obtained from crude oil, and the price of crude oil is highly volatile. This volatility also leads to fluctuating costs of bulk chemicals, making it difficult for companies to plan their operations and investments effectively. Additionally, the prices of bulk chemical products have a significant impact on the demand for bulk chemicals, thereby restraining market growth. Moreover, increasing environmental regulations regarding the disposal of hazardous waste and the use of environmentally friendly materials, along with competition from less expensive conventional counterparts of bulk chemicals, have resulted in a slowdown in market growth.  

Recent Development

• In 2023, ORLEN Południe plant made propylene glycol production more sustainable based on BASF technology.

Market Segmentation

Malaysia Bulk Chemicals Market is segmented based on type, end user industry, region and competitive landscape. Based on the type, the market is divided into inorganic and organic. Based on the end user industry, the market is categorized into construction, automotive, healthcare, food & beverages, agriculture, and others. Based on region, the market is segregated into East Malaysia, and West Malaysia.

Company Profiles

BASF (Malaysia) Sdn. Bhd., Shell Malaysia Plc, PETRONAS Chemicals Group Berhad (PCG), Eastman Chemical (Malaysia) Sdn. Bhd., Samaju Kimia Sdn Bhd, Element Chemicals Sdn Bhd, Jaya Chemical Supplier, BIS Chemicals Sdn. Bhd, Taiko Marketing Sdn Bhd, Malaysia Chemical Exporters are some of the key players in Malaysia Bulk Chemicals Market.

Report Scope:

In this report, Malaysia Bulk Chemicals Market has been segmented into the following categories, in addition to the industry trends, which have also been detailed below:

• Malaysia Bulk Chemicals Market, By Type:
• Inorganic
• Organic
• Malaysia Bulk Chemicals Market, By End User Industry:
• Construction
• Automotive
• Healthcare
• Food & Beverages
• Agriculture
• Others
• Malaysia Bulk Chemicals Market, By Region:
• East Malaysia
• West Malaysia  

Competitive landscape

Company Profiles: Detailed analysis of the major companies in Malaysia Bulk Chemicals Market.

Available Customizations:

With the given market data, TechSci Research offers customizations according to a company’s specific needs. The following customization options are available for the report:

Company Information

• Detailed analysis and profiling of additional market players (up to five).