Plastic packaging industry in Malaysia expected to see strong orders from Japan in Q1 2014 due to Japan's forthcoming rise in consumption tax, The Star Online reports
December 26, 2013
– Malaysia’s plastic packaging industry is expected to see strong orders from Japan in the first quarter of 2014 due to Japan’s forthcoming rise in consumption tax to 8% from 5% by April 1, 2014, The Star Online reported on Dec. 23.
The reason for such market increase is because Malaysian plastic producers can manufacture quality thinner gauge plastic packaging materials and supply them consistently, explained Kelvin Khaw, managing director of SLP Resources Bhd, a Malaysia-based plastic packaging solutions provider.
For SLP Resources, the company is able to produce durable packaging materials that are about six microns to 20 microns in thickness, depending on the application, whereas conventional plastic packaging materials measure 10 microns to 35 microns in thickness, and consume more raw materials to produce, he added.
The company expects to close its 2013 fiscal year ending Dec. 31 with the best results over the past five years, showing strong double-digit growth in the demand for household plastic packaging materials in Japan.
Wholesalers in Japan are buying more now to stock up before the tax increase in 2014.
The primary source of this article is The Star Online, Selangor, Malaysia, on Dec. 23, 2013.