Chemical sector plays quiet but critical role in Malaysia's economic growth

Share:

Malaysia’s electronics and semiconductor industries often dominate discussions on the country’s economic growth, but industry players say the chemical sector plays a less visible yet equally important role in generating domestic economic value.

KUALA LUMPUR: Malaysia's electronics and semiconductor industries often dominate discussions on the country's economic development, however sector players say the chemical sector plays a less visible yet equally crucial role in generating domestic economic value.

The sector also supports high-skilled jobs and strengthens manufacturing resilience.

A recent analysis by the World Bank highlights this hidden strength using a concept called Domestic Value Added (DVA), a measure of how much money from a product actually stays in Malaysia versus how much leaks out to foreign countries.

While Malaysia's electrical and electronics (E&E) sector remains the country's largest export engine, it retains about 54 per cent of its economic value domestically, reflecting its reliance on imported components and machinery to assembly and re-export.

By comparison, the chemical sector retains about 61 per cent of its value within Malaysia, underscoring its deeper integration into the domestic economy.

According to Ancom Nylex Bhd chief executive officer Datuk Lee Cheun Wei, the stronger value retention reflects the structure of the sector, which functions as a critical midstream engine that transforms raw inputs into higher-value outputs.

Previous

Global Chemical Industry Faces Critical Inventory Shortage

Next

West Coast chemical emergencies raise questions about the safety of massive industrial tanks

Quick inquiry

Create

Inquiry Sent

We will contact you soon