Malaysia’s Jan-May approved investments in oleochemicals surge to RM13.8 bln

0

KUALA LUMPUR: Malaysia is well on course to cement its leadership in the global oleochemical industry, with approved project-related investments hitting RM13.8 billion for the period of January-May.

This is a big leap from RM482 million in approved investments for the whole of last year, said Malaysian Investment Development Authority (MIDA) director of Chemical and Advanced Material Division Umarani Muniandy.

The growth is fuelled by four big projects, including one from a plantation giant, she told reporters on the sidelines of the “Oleochemical Industry in Malaysia: Downstream Expansion and Sustainability” Seminar here yesterday.

“We see strong interests in the industry.

“Some of the recently approved investments came from new players and this means the palm oil industry is on track to move to a higher value-added chain,” Umarani said.

The January-May approved investments, comprising RM6.2 billion in domestic investments and RM7.6 billion in foreign investments, are expected to create 2,791 jobs, MIDA statistics show.

This is against the RM333 million in domestic and RM149 million foreign investments approved for the whole of 2013, that would create 283 jobs.

Oleochemicals are chemicals derived from plant or animal fats.

The products manufactured by oleochemical companies in Southeast Asia are mainly basic oleochemicals that include fatty alcohols, fatty acids, methylesters and glycerin.

MIDA urged more companies to move into higher value-added products such as derivatives like alcohol ethoxylates, sugar esters, alcohol ether sulfates, and end products such as soap bars, laundry detergents, toothpaste and shampoo.

In his opening speech at the seminar, MIDA chief executive officer Datuk Azman Mahmud said the global demand for oleochemicals is growing rapidly over the years with increasing demand from developed countries such as the US, Europe and Japan. — Bernama