p127-39 - Engineering Plastics in Sea-Updated1

Engineering Plastics Market in Southeast Asia P127-39
January 2008
2008 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.
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Table of Contents
Executive Summary Total Southeast Asia Engineering Plastics Market Singapore Engineering Plastics Market Malaysia Engineering Plastics Market Thailand Engineering Plastics Market Database of Key Industry Participants 5 13 36 79 124 167
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Executive Summary
Executive Summary
Engineering plastics are high-end polymers, usually ranked between standard commodity plastics and advanced engineering polymers. There are five main types of engineering plastics that are focused in this research service. They are: Polyamide (PA) Polycarbonate (PC) Polyoxymethylene (POM) Polybutylene terephthalate (PBT) Others, polystyrene (PS), polyphenylene oxide (PPO), and polymethylmethacrylate (PMMA) This research service presents the current and future trends of the engineering plastics market in Malaysia, Thailand, and Singapore (referred to as Southeast Asia in this study) for the period 2003 to 2013.The base year followed in this study is 2006, and the forecast period is from 2007 to 2013. The study provides unit shipment forecasts for the engineering plastics market in these countries. Analysis of the market drivers and restraints along with a detailed market analysis and competitive analysis is also presented in this study. The study contains an in-depth analysis of the major trends witnessed in the total engineering plastics market in Southeast Asia, followed by a country-wise analysis.
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Executive Summary (Contd...)

The total market for engineering plastics in Malaysia, Singapore, and Thailand has been witnessing growth in the past 5-6 years and is expected to continue to grow in the future too. The major drivers include:
Macro economic growth trend Growth in the end-user industry Rapid development of the engineering plastics industry
Despite this growing trend, manufacturers of engineering plastics, continue to face certain restraints that are likely to decrease the demand for their products. The major restraints include:
Increasing cost of raw materials Erosion of profit margins due to stiff competition
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Application of Engineering Plastics Engineering plastics are used in an increasingly large number of applications. The application areas are generally categorized by the end-user industries. There are four broad application groups for engineering plastics in Malaysia, Singapore, and Thailand. They are: Automotive industry Electronics and electrical industry Household and office appliances Others (includes toys, medical equipment, sports equipment, and general purpose applications) Engineering plastics are characterized by higher price and better performance than commodity plastics. Their most notable properties are high stiffness and strength, high resistance to heat distortion, high dimension stability, high resistance to weathering, and resistance to a wide variety of chemicals. There are numerous applications for engineering plastics. The most important end-user is still the automotive industry, followed by the electrical and electronics industry, and household and office appliances. Other markets include toys, medical equipment, sports equipment, and general purpose applications.
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The total market for engineering plastics in Malaysia, Singapore, and Thailand in terms of unit shipment was 243,400 tons in 2006. Unit shipment is forecast to grow at a rate of about 8.4 percent each year to reach 426,800 tons by 2013. Of the three countries covered in this study, Thailand is the largest market for engineering plastics. This country represents 58.5 percent of the total units, followed by Malaysia with 23.7 percent, and Singapore with 17.8 percent. The three countries covered in this study are expected to maintain their positions as in 2006 till 2013. Thailand take the lead in 2006, with about 58.5 percent share, and is expected to maintain higher growth compared to other countries. By 2013, it is expected to hold approximately 67.6 percent of the unit share in the total engineering plastics market.
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Growth of the engineering plastics market in Thailand can be attributed to an increase in end-user demand, following the expected expansion and growth of its automotive industry. Macroeconomic factors such as foreign capital investment and ASEAN Free Trade Area (AFTA) in Thailand drive the growth of engineering plastics in the country. Increase in electrical and household appliance manufacturing is expected to generate an increase in consumption for engineering plastics. As a result, Thailand is projected to witness an increase in its market revenues by 2008. The revenue share for Singapore is projected to decline. Due to the high production costs, many end-user companies are likely to prefer to relocate their plants to neighboring Asian countries, where labor and rental costs are much cheaper. This is the primary reason for the projected decline in the revenue share of the Singapore market. Nevertheless, the potential revenue forecast is expected to maintain Singapores position as the second largest market among the three countries. Detailed analysis of each country is included in the country segments of this research service.
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Analysis by Major Segments Polyamide Market The PA market is one of the smallest two engineering plastics segments in Malaysia, Singapore, and Thailand. This segment represents approximately 7.9 percent of the total unit shipment, and is set to decrease to about 7.0 percent in 2013. The total unit shipment of PA market in Malaysia, Singapore, and Thailand was 17,300 tons in 2006.
Polycarbonate Market The PC engineering plastics segment is the largest segment in the total market. This segment represents 57.1 percent of the total engineering plastics market, and is set to increase to 62.7 percent in 2013. It witnessed a unit shipment of 139,000 tons in 2006.
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Market Segment Analysis Polyoxymethylene Market The POM segment is the second largest engineering plastics segment in Malaysia, Singapore, and Thailand. This segment represented 15.6 percent of the total engineering plastics market in 2006. The unit is set to increase from 38,000 tons in 2006 to 63,300 tons in 2013, and the percentage unit of this segment is expected to remain mainly unchanged in 2013 from 2006. Polybutylene Terephthalate Market The PBT segment is the other smallest engineering plastics segment in the three countries. This segment represented 7.8 percent of the total engineering plastics market, and is set to slightly decline to about 5.9 percent in 2013. The PBT segment in Malaysia, Singapore, and Thailand witnessed a unit shipment of 18,900 tons in 2006.
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Market Segment Analysis Other Engineering Plastics Market The other engineering plastics segment is the third largest segment in Malaysia, Singapore, and Thailand. The other engineering plastics segment was worth 28,200 tons in 2006. This segment represented 11.6 percent of the total engineering plastics market in the three countries, and is expected to further decline to about 9.6 percent in 2013.
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Total Southeast Asia Engineering Plastics Market
Market Engineering Measurements

Total Engineering Plastics Market: Market Engineering Measurements (Singapore, Malaysia, and Thailand), 2006
Measurement Names Market age Units (in base year 2006) Potential units (in year 2013) Base year market growth rate Compound annual growth rate Price sensitivity Price range Number of products Competitors (active market competitors in 2006) Degree of competition Measurement Development Stage 243.4 kt 426.8 kt 8.3% 8.4% High $1,700 to 4,000/ton 5 15 to 20 9 Trend Increasing Increasing Increasing Increasing Increasing Increasing Stable Increasing
Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
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The markets in Malaysia, Singapore, and Thailand were among the most robust engineering plastics markets in the Southeast Asian region. Since the 1998 economic crisis in Southeast Asia, as well as the 2001 global economic slowdown, the engineering plastics industry has been through a recovery period, and is seeing a positive growth in the past five years. Some countries such as Thailand are expected to benefit from the increased exports, while countries such as Singapore are expected to see their exports and demand decline. End users in these countries are expected to relocate to more cost-effective manufacturing sites in the hope to lower costs and improve profit margins. To a certain degree, Malaysia is expected to lose some of its competitive advantage in the engineering plastics industry to neighboring Thailand. The market for engineering plastics can be segmented into five product categories. These are:
Polyamide (PA) Polycarbonate (PC) Polyoxymethylene (POM) Polybutylene terephthalate (PBT) Others, polystyrene (PS), polyphenylene oxide (PPO), and polymethylmethacrylate (PMMA)
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Market Overview and Introduction
Key Industry Challenges

Total Engineering Plastics Market: Impact of Top Industry Challenges (Singapore, Malaysia, and Thailand), 2007-2013
Challenge Increasing cost economics Market shift in the end-user industry Globalization expected to heighten competition Price pressures stifling technological innovation Restructuring of the market threatening smaller suppliers Limited domestic production of engineering plastics Emergence of new technologies to drive some markets Political and social uncertainty to limit growth in investment 1-2 Years High High High High High High Medium Medium 3-4 Years High High High Medium Medium Medium Medium Medium 5-7 Years High High Medium Medium Medium Medium High Medium
Source: Frost & Sullivan

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Key Industry Challenges (Contd...)
Increasing Cost Economics The overall decrease in profit margins is attributable to factors such as high prices of crude oil, increasing raw materials costs, and raw materials and inventory costs. Market Shift in the End-user Industry The automotive assembling operations and electronics sector provides a large market for engineering plastics. However, with rising cost of production, especially in Malaysia and Singapore, and the opening up of markets in 2005 under the AFTA agreement, many end users are relocating to other more cost-effective parts of Asia such as China and Thailand. This poses an increased challenge to the engineering plastics manufacturers in Malaysia and Singapore.
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Globalization Expected to Heighten Competition The Malaysian, Singapore, and Thai markets for engineering plastics are expected to become even more competitive due to globalization. As part of the World Trade Organizations agreement on world trade, countries have agreed to reduce import tariffs to below 5 percent in the first few years of the new millennium. Trade barriers for finished goods are likely to go down. This poses a major challenge to many engineering plastics manufacturers, as there is now the looming threat of cheaper products coming into the market from countries such as Japan, Taiwan, and South Korea. This is expected to intensify competition, and may cause some consolidation in the industry, as companies may seek to gain economies of scale. Price Pressures Stifling Technological Innovation The suppliers are under price pressure not only from the customers that wish to get the engineering plastics at the lowest price possible, but also due to rise in raw material costs because of increasing short energy supply all around the world. The highly priced market has made manufacturers focus more on price as a competitive edge to increase their share rather than technology innovation. It is a major challenge for companies to buck the price-sensitive market and aim for the high-end, more profitable market. Overall, the engineering plastics market has become very price competitive, and such a situation has only resulted in cost reduction. Investment in R&D is negligible.
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Restructuring of the Market Threatening Smaller Suppliers Engineering plastics is largely becoming a large-volume business. Moreover, companies that have higher economies of scale are likely to benefit in the long term. Globalization is likely to drive big MNCs manufacturers in the region to consolidate, plan for expansion, or have a regional production plant in Thailand or Malaysia. Smaller manufacturers of engineering plastics are likely to face stiff competition. Limited Domestic Production of Engineering Plastics Engineering plastics are characterized by higher price and better performance than commodity plastics, which have a small share of the total plastics market, considering the limited availability and high import costs. There is limited domestic production of engineering plastics in Southeast Asia. A large portion of engineering plastics is imported from Japan, Europe, and the United States. The cost of importing engineering plastics is higher than the actual price of engineering plastics as the cost of transportation and logistics is high. These are major barriers to greater usage of engineering plastics. The impact of challenge is expected to lessen as more companies set up manufacturing plants in the region.
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Emergence of New Technologies to Drive Some Markets New technology engineering plastics have been introduced in some markets in the region. In the long term, with liberalization and increasing competition, the large companies in this region may be forced to manufacture high-end engineering plastics to have a competitive advantage. PC/ABS is basically a high-strength engineering plastic, consisting of advanced plastic alloys combined with conventional ABS resins. They have better economies of scale as they consume less raw material, and at the same time, exhibit excellent physical properties. These new technology products are expected to sustain growth, particularly in the mature markets. It is likely that the trend will catch up in the rest of Asia as demand for engineering plastics that have low costs of raw materials is likely to be an attractive alternative. Political and Social Uncertainty to Limit Growth in Investment In the Southeast Asian region, the economy is closely linked to the political outlook. The unstable political situation in some countries such as Indonesia, the Philippines, Malaysia, and Thailand in the region has dampened the possibilities of growth. This has hurt investor confidence as companies defer or prioritize other areas such as China for business development. An uncertain political and economic outlook in the region is a major impediment to growth in investments.
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Market Drivers
Total Engineering Plastics Market: Market Drivers Ranked in Order of Impact (Singapore, Malaysia, and Thailand), 2007-2013
Rank 1 2 3 Driver Macro economic growth trend Growth in the end-user markets Rapid development of the engineering plastics industry 1-2 Years High High Medium 3-4 Years High High Medium 5-7 Years High High Medium
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Market Drivers (Contd...)

Macro Economic Growth Trend The total engineering plastics market in Singapore, Malaysia, and Thailand has grown steadily since 2003 aided by a stable and healthy economic growth trend over the last few years. Singapores gross domestic product (GDP) growth rate of 2006 at 7.9 percent was higher than its growth rate of 6.6 percent in 2005. Malaysia and Thailand also experienced a positive growth of 5.2 percent and 5.0 percent in 2006. The overall stable and healthy economic growth in South East Asia plays an important role in fuelling the growth of plastics industries. Growth in the End-user Markets Malaysia is one of the leading electrical and electronic product exporters worldwide. Almost 1000 companies in this industry are incorporated in Malaysia. While Thailand is the worlds second largest pick-up truck market and ASEANs largest automotive market and assembler. The electrical and electronics industry and the automotive industry are the two largest consumers of engineering plastics in SEA. Growth of these two industries is driving the demand for engineering plastics especially in Malaysia and Thailand.
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Rapid Development of the Engineering Plastics Industry Improvement in technology not only increases the number of engineering plastics application, but also enables new plastic types to be produced. New engineering plastics are constantly being developed every year for tougher performance, higher quality, and wider applications to serve customers better and meet their specific needs. Plastics are inching their way into new applications and market. There are still tremendous opportunities for technological advancement and product improvement in the market.
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Market Restraints
Total Engineering Plastics Market: Market Restraints Ranked in Order of Impact (Singapore, Malaysia, and Thailand), 2007-2013
Rank 1 2 Restraint Higher cost economics Erosion of profit margins due to stiff competition 1-2 Years High High 3-4 Years High High 5-7 Years High Medium
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Market Restraints (Contd...)

Higher Cost Economics The production of engineering plastics is highly dependent of raw materials that come from crude oil and crude oil derivatives. The continuing rise in crude oil prices has been causing prices of raw materials to increase sharply since 2003. Engineering plastics companies are finding it difficult to generate high profits because rise in prices are insufficient to cover increases in production costs. Erosion of Profit Margins Due to Stiff Competition In 2006, the engineering plastics market experienced increased competition, not only because of the high production costs, high raw material costs, but also from imported engineering plastics from countries such as Taiwan and South Korea. Many of the existing engineering companies in Southeat Asia are beginning to lose some of their competitive advantage.
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Unit Shipment Forecasts

Total Engineering Plastics Market: Unit Shipment Forecasts (Singapore, Malaysia, and Thailand), 2003-2013 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Units ('000 tons) 193.4 208.2 224.8 243.4 264.0 287.0 312.8 341.3 367.4 395.8 426.8 Compound Annual Growth Rate (2006-2013): 8.4%
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Unit Growth Rate (%) 7.6 7.6 8.0 8.3 8.5 8.7 9.0 9.1 7.6 7.7 7.8
Unit Shipment Forecasts (Contd...)

Total Engineering Plastics Market: Unit Shipment Forecasts (Singapore, Malaysia, and Thailand), 2003-2013
Units ('000 tons) Unit Growth Rate (%)
450 400 350 300 250 200 150 100 50 0
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Unit Growth Rate (%)
Units ('000 tons)
0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
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Total Engineering Plastics Market: Unit Shipment Forecasts by Country (Singapore, Malaysia, and Thailand), 2003-2013
Singapore Year Units (kt) UGR (%) Malaysia Units (kt) UGR (%) Thailand Units (kt) UGR (%)
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
41.4 41.8 42.4 43.2 44.1 45.2 46.6 47.9 49.4 50.8 52.4
1.0 0.9 1.4 1.9 2.1 2.4 3.1 2.9 3.0 3.0 3.1
48.5 51.3 54.4 57.7 61.2 65.1 69.3 73.9 77.6 81.6 85.9
6.0 5.8 6.0 6.1 6.1 6.3 6.5 6.6 5.1 5.1 5.2
103.5 115.1 128.0 142.5 158.7 176.7 196.9 219.5 240.4 263.4 288.6
11.2 11.2 11.2 11.3 11.3 11.4 11.4 11.5 9.5 9.5 9.6
Key: UGR=Unit Growth Rate Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
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Total Engineering Plastics Market: Unit Shipment Forecasts by Segment Type (Singapore, Malaysia, and Thailand), 2003-2013
PA Year Units (kt) UGR (%) Units (kt) PC UGR (%) POM Units (kt) UGR (%) PBT Units (kt) UGR (%) Others Units (kt) UGR (%)
Market Forecasts and Trends
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
15.9 16.9 18.1 19.3 20.6 21.9 23.3 24.8 26.4 28.0 29.8
6.7 6.7 6.7 6.7 6.6 6.4 6.5 6.5 6.2 6.2 6.3
102.7 113.6 125.6 139.0 153.8 170.3 188.5 208.5 226.6 246.2 267.7
10.6 10.6 10.6 10.6 10.7 10.7 10.7 10.6 8.6 8.7 8.7
34.7 35.4 36.5 38.0 40.0 42.5 45.8 49.7 53.7 58.2 63.3
2.0 1.9 3.0 4.2 5.3 6.3 7.7 8.5 8.1 8.4 8.7
16.7 17.4 18.1 18.9 19.7 20.6 21.6 22.6 23.4 24.2 25.0
4.1 4.1 4.2 4.3 4.4 4.5 4.6 4.7 3.4 3.4 3.5
23.4 24.9 26.5 28.2 29.9 31.6 33.6 35.7 37.4 39.2 41.1
6.3 6.3 6.4 6.4 5.9 6.0 6.1 6.2 4.8 4.8 4.9
Key: UGR=Unit Growth Rate Note: Others include polystyrene (PS), polyphenylene oxide (PPO), polymethylmethacrylate (PMMA), and others Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
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Market Forecasts and Trends (Contd...)

Total Engineering Plastics Market: Percent of Units by Segment Type (Singapore, Malaysia, and Thailand), 2003-2013 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 PA (%) 8.2 8.1 8.0 7.9 7.8 7.6 7.5 7.3 7.2 7.1 7.0 PC (%) 53.1 54.6 55.9 57.1 58.2 59.4 60.3 61.1 61.6 62.2 62.7 POM (%) 18.0 17.0 16.2 15.6 15.2 14.8 14.6 14.6 14.6 14.7 14.8 PBT (%) 8.6 8.3 8.1 7.8 7.5 7.2 6.9 6.6 6.4 6.1 5.9 Others (%) 12.1 12.0 11.8 11.6 11.3 11.0 10.7 10.4 10.2 9.9 9.6
Note: Others include polystyrene (PS), polyphenylene oxide (PPO), polymethylmethacrylate (PMMA), and others Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
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Unit shipment for the total engineering plastics market was 243,400 tons in 2006, and is projected to reach 426,800 tons in 2013. This represents a compound annual growth rate (CAGR) of 8.4 percent from 2006 to 2013. The total market for engineering plastics is forecast to grow. Healthy growth rate has been seen during the past four years, and is expected to continue in 2007 and 2008 due to the regions healthy economy. Pattern in unit share is expected to be more simple after 2006. Cross-regional trade increases after the AFTA agreement goes into full effect. Countries such as Thailand should expect their regional market share to further increase, while Malaysia and Singapore are expected to witness a decline in their market share. The Singapore and Malaysian markets are expected to continue declining throughout the forecast period as relocation of end users to countries such as Thailand has been occurring since the beginning 2004.
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The PC segment is the largest engineering plastics segment, followed by the POM segment. These two types of engineering plastics make up the majority of engineering plastics types in Malaysia, Singapore, and Thailand. The PC segment comprised approximately 57.1 percent of the total market in 2006, while the POM segment comprised about 15.6 percent of the total units. The PC segment is expected to continue to grow as the dominant market segment throughout the forecast period, while Frost & Sullivan expects a decline in the market share of the POM segment as the POM application has been increasingly edged out the scope of engineering plastics as the result of market shift of end users to countries such as China, India.The other engineering plastics segment stood at the third place, with 11.6 percent of the total unit shipment in 2006. The smallest segments are the PA and PBT segments, accounting for about 7.9 and 7.8 percent of the market units, respectively. The application of PA plastics is growing limited as it has been increasingly replaced by Liquid Crystal Polymer (LCP) and Polyphenylene Sulfide (PPS). Overall, except the PC segment, all the other four segments are expected to see a market unit share decrease by 2013.
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Total Engineering Plastics Market: Competitive Structure (Singapore, Malaysia, and Thailand ), 2006
Number of Companies in the Market Types of Competitors Distribution Structure Tiers of Competition Notable Acquisitions, Mergers 15 to 20 Multinationals, importers/traders Suppliers/manufacturers to end users Suppliers/manufacturers to distributors or end users Tier 1, multinationalsforeign and domestic GE and PetroChina Company Limited cooperated by creating a world-scale polycarbonate (PC) resin manufacturing joint venture in China GE announced sale of GE Plastics business to Saudi Basic Industries Corporation (SABIC) ASAHI had a joint venture with Mitsubishi Gas Chemical Company Inc. (MGC) in Singapore, for the production of modified PPO resin and its intermediate Toray had alliance with BASF to form Toray BASF PBT Resin Sdn. for PBT manufacturing at BASFs Verbund site in Kuantan, Malaysia. Polyplastics Co., Mitsubishi Gas Chemical, Inc., Korea Engineering Plastics Co., and Ticona formed an alliance for the production of Polyacetal resin in China in 2005 Key End-user Groups Competitive Factors
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Competitive Structure
Electronics and electrical, automotive sector, household and consumer products, Other general purpose plastics Quality of products, technical service, price, innovation, and new products
Source: Frost & Sullivan 2008 Frost & Sullivan, All rights reserved www.frost.com
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Competitive Structure (Contd...)

There are approximately 15 to 20 companies supplying to the engineering plastics market in Malaysia, Singapore, and Thailand. Almost all of them are multinational companies, with headquarters in Europe, Japan, or the United States. The major MNCs that are present include GE, Dupont, Mitsubishi Engineering Plastics (MEP), Asahi, Bayer, BASF, Polyplastics, and Teijin. Distribution of engineering plastics is done both through distributors or agents, and by direct sales to the end users. Distributors are only used in instances when companies do not have enough sales personnel or are not able to cover certain geographic areas. However, most engineering plastics suppliers prefer to supply directly to the clients and provide technical support themselves. At times, distributors may not have the necessary technical knowledge to support the sale of products. Engineering plastics have numerous applications and end users. The most important end users still are automotive and electrical and electronics sectors, business machinery, and household appliances. Other end-user markets include information storage, toys, glazing, and sportswear applications. Companies across the region compete on quality and technical support, and prices.
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Singapore Engineering Plastics Market

The economy in Singapore is small by world standards; however, its Gross National Product (GNP) is one of the highest, making it one of the richest countries in the world. This is largely due to the open nature of its economy. Singapore trades up to nearly 4 times its GDP in 2006. In 2000 and 2001, the global economic slowdown and the sluggish electronics industry contributed to the decline in growth rate for the engineering plastics industry in Singapore. Since 2003, Singapore has been through a recovery phase, and is seeing growth for the engineering plastics industry driven by the manufacturing sector, particularly electronics and electrical, household, and office goods, as well as automotive parts manufacturing. These industries drive the demand for engineering plastics such as polycarbonate (PC), polyoxymethylene (POM), and polyamide (PA) that have a significant share of the engineering plastics market in Singapore. The growing telecommunications market is expected to drive the demand for PC and POM for telecommunications equipment. From 2004 to 2006, the GDP grew by 8.8%, 6.6%, and 7.9%, respectively. This healthy economic growth is expected to continue driving the growth of engineering plastics industry for the next 2 to 3 years.
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Engineering Plastics Market: Market Engineering Measurements (Singapore), 2006
Measurement Name Market age Units (in base year 2006) Potential units (in year 2013) Base year market growth rate Compound annual growth rate Price sensitivity Price range Number of products Competitors (active market competitors in 2006) Degree of competition Measurement Mature Stage 43.2 kt 52.4 kt 1.9% 2.8% High $1,700 to 4,000/ton 5 15-20 10 Trend Increasing Increasing Increasing Increasing Increasing Increasing Stable Increasing
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Market Drivers
Engineering Plastics Market: Market Drivers Ranked in Order of Impact (Singapore), 2007-2013
Rank 1 2 3 4 5 Driver Macro economic growth trend Growth in the end-user markets Favorable government initiatives Rapid development of the engineering plastics industry Rapid development of the chemicals industry 1-2 Years High High High Medium Medium 3-4 Years High High High Medium Medium 5-7 Years High High High Medium Medium
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Macro Economic Growth Trend Singapore has been witnessing a continuous booming trend of economic growth over the past three years. From 2004 to 2006, the economy expanded by 8.8 percent, 6.6 percent, and 7.9 percent, respectively, driven by the growth in world demand for electronics, pharmaceuticals, other manufactured goods and financial services, and growth in the economies of its major trading partners--the United States, EU, Japan, and China, as well as the expanding emerging markets such as India. The government has estimated an expansion in economy of as much as 7 percent in 2007, after growth of 7.9 percent in 2006. The overall stable and healthy economic growth in Singapore plays an important role in fuelling the growth of the plastics industry.
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Growth in the End-user Markets Manufacturing industry accounted for 26.9 percent of Singapore's gross domestic product in 2006. The electronics and chemicals industries lead Singapore's manufacturing sector, accounting for 32.4 percent and 32.5 percent, respectively, of Singapore's total manufacturing output in 2006. The electrical and electronics industry is the largest consumer of engineering plastics, which makes up around 70 percent of the total demand for engineering plastics products in the country. The electronics sector in Singapore is one of the largest production bases of consumer and industrial electronics in Southeast Asia. The condition of the electronics industry in Singapore increases the demand for engineering plastics. The automotive industry is the second largest consuming sector of engineering plastics. Growing automotive industry in ASEAN countries provides a large market for the plastic automotive parts molded in Singapore. The continued growth in the automotive manufacturing industry in the region is expected to spur demand for engineering plastics in the Singapore market.
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Market Drivers (Contd)

Favorable Government Initiatives Singapore continues to attract investment funds on a large scale despite its relatively highcost operating environment. The government has also pursued cost-cutting measures, including tax cuts and wage and rent reductions, to lower the cost of doing business in the country. The government is actively negotiating free trade agreements (FTAs) with 16 key trading partners, and has already concluded 11 FTAs. These favorable government initiatives have a net effect of increasing the demand for intermediate goods such as engineering plastics resins. Rapid Development of the Engineering Plastics Industry The engineering plastics market is one of the most promising and fastest growing market in the chemicals and plastics industry. Improvement in technology not only increases the number of engineering plastics application, but also enables new plastic types to be produced. New engineering plastics are constantly being developed every year for tougher performance, higher quality, and wider applications to serve customers better and meet their specific needs. Plastics are inching its way into new applications and market. There are still tremendous opportunities for technological advancement and product improvement in the engineering plastics industry.
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Market Drivers (Contd)

Rapid Development of the Chemicals Industry Chemical and chemical products accounted for 32.5 percent of the value-additions made to manufacturing in 2006, exceeding electronics as the largest manufacturing industry. The overall chemical industry saw a robust compound growth of more than 18.3 percent over the latest four years 2001 to 2004, with further rapid growth in the chemical industry expected to maintain at this level. The Government of Singapore is very keen in developing high-technology chemical industries. Because of the regions competitive logistics costs and its world-class chemical logistics services, Singapore is a major transshipment hub for chemical products shipped into the Asia Pacific region, with the chemicals trade volume growing at a compound annual growth rate (CAGR) of 24.3 percent from 1999 to 2003. These developments drive the demand for high-technology plastics such as PA, PC, and POM.
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Market Restraints
Engineering Plastics Market: Market Restraints Ranked in Order of Impact (Singapore), 2007-2013
Rank 1 2 3 4 Restraint Higher cost economics Sharp drop in electronics export High barriers to entry Erosion of profit margins due to stiff competition 1-2 Years High High High High 3-4 Years High High High High 5-7 Years High High High Medium
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Higher Cost Economics The engineering plastics industry is affected by increasing cost of raw materials in addition to increase in energy and transportation cost. The increase in crude oil price, globally, is leading to an increase in energy and transportation cost. Prices for the raw materials that come from crude oil and crude oil derivatives have been on the increase starting mid 2004, and are expected to continue to grow for the next 1 to 2 years. According to the increasingly intense energy supply scenario around the world, it is projected that raw materials cost will remain higher. Sharp Drop in Electronics Export Due to the high production costs, many manufacturing companies are likely to prefer relocating their plants to neighboring Asian countries, where labor and rental costs are much cheaper. The shift of end-user industries such as electrical and home appliances, consumer goods, and also labeling/tape converter companies have caused the shrinking of the market for engineering plastics in Singapore. On the other hand, Singapore has been seeing a drop in electronics shipment in the recent years, which was due to weaker exports of disk drives, consumer electronics, transistors, and integrated circuits.
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High Barriers to Entry Singapore is a mature market for engineering plastics, and there are high barriers for a potential entrant to penetrate into this market. End-user companies are usually reluctant to switch supplier, not only because they already know the quality of existing engineering plastics firms in the market, but also because OEMs designate the suppliers under a lot of occasions. Erosion of Profit Margins Due to Stiff Competition Most of the engineering plastics MNCs have their regional offices in Singapore, which serve the whole ASEAN market. The competition, both from Singaporean companies as well as from the foreign suppliers, is intensely high because of high production costs, high raw material costs, and low prices. The smaller companies having lower scales of operation are unlikely to face stiffer competition from the larger companies. Companies in Singapore are facing further erosion in profits as profit margins are affected by various factors including high domestic manufacturing costs, high raw material costs, competition from imports, and a mature market. As Singapore is becoming a high-cost center for manufacture, the government has also encouraged firms to invest outside Singapore, with China being the top destination.
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Engineering Plastics Market: Unit Shipment Forecasts (Singapore), 2003-2013 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Units ('000 tons) 41.4 41.8 42.4 43.2 44.1 45.2 46.6 47.9 49.4 50.8 52.4 Unit Growth Rate (%) 1.0 0.9 1.4 1.9 2.1 2.4 3.1 2.9 3.0 3.0 3.1
Compound Annual Growth Rate (2006-2013): 2.8%

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Unit Shipment Forecasts (Contd)

Engineering Plastics Market: Unit Shipment Forecasts (Singapore), 2003-2013
80 Units ('000 tons)
10 Unit Growth Rate (%)
60
40
20
0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year
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Engineering Plastics Market: Unit Shipment Forecasts by Segment Type (Singapore), 2003-2013
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
2.7 2.8 2.9 3.0 3.1 3.2 3.2 3.3 3.3 3.4 3.5
3.0 3.0 3.0 3.0 3.0 2.0 2.0 2.0 2.0 2.0 2.0
15.9 17.1 18.5 20.0 21.6 23.3 25.2 27.0 28.3 29.7 31.2
8.0 8.0 8.0 8.0 8.0 8.0 8.0 7.0 5.0 5.0 5.0
11.0 9.9 8.9 8.0 7.2 6.5 6.0 5.5 5.5 5.5 5.5
(10.0) (10.0) (10.0) (10.0) (10.0) (10.0) (8.0) (8.0) 0.0 0.0 0.0
6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0 6.0
0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
5.8 6.0 6.1 6.2 6.2 6.2 6.2 6.2 6.2 6.2 6.2
2.0 2.0 2.0 2.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Key: UGR=Unit Growth Rate Note: Others include polystyrene (PS), polyphenylene oxide (PPO), polyethylene terephthalate (PET), and others Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
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Engineering Plastics Market: Percent of Units by Plastic Type (Singapore), 2003-2013 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 PA (%) 6.6 6.8 6.9 6.9 7.0 7.0 6.9 6.8 6.8 6.7 6.6 PC (%) 38.3 41.0 43.6 46.3 49.0 51.7 54.1 56.4 57.3 58.5 59.6 POM (%) 26.5 23.6 21.0 18.5 16.3 14.3 12.8 11.4 11.1 10.8 10.5 PBT (%) 14.5 14.4 14.2 13.9 13.6 13.3 12.9 12.5 12.2 11.8 11.5 Others (%) 14.1 14.2 14.3 14.4 14.1 13.7 13.3 12.9 12.6 12.2 11.8
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Singapore is a mature market for engineering plastics. A continuous healthy economic growth trend over the past three years has played an important role in sustaining the stability of the whole chemical industry including engineering plastics sectors. More importantly, Singapore is a world-class logistics hub and trading center. A large portion of engineering plastics is imported into Singapore and exported again to other countries. Unit shipment for the engineering plastics market was 41,400 tons in 2003. Since then, unit shipment growth has been quite flat, between 0.9 and 1.9 percent, per annum. Unit shipment for the market was 43,200 tons in 2006 in Singapore. After 2006, growth within this market is expected to range from 2.1 percent in 2007 to 3.1 percent in 2013, when the market is forecast to reach an estimated 52,400 tons in 2013. The CAGR, in terms of unit shipment, for the period from 2006 to 2013 is anticipated to be 2.8 percent.
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The PC market is the largest engineering plastics segment, which makes up the majority of the engineering plastics market in Singapore. This segment represented 46.3 percent of the total engineering plastics market units in 2006, and is expected to significantly increase its dominating market share to 59.6 percent in 2013. The POM segment was in the second place, with 18.5 percent of the total market share in 2006, and is expected to shrink heavily throughout the forecast period, with segment share slipping to 10.5 percent in 2013. The other engineering plastics segment and the PBT segment engineering plastics segments accounted for 14.4 and 13.9 percent of the total market units. These two segments are expected to witness a slight decline in their shares to 11.8 percent and 11.5 percent, respectively in 2013. The smallest segment is the PA segment, which represents only about 6.9 percent of the total market units, and is not expected to change by any significant amount in future five years.
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Pricing Trends
Engineering Plastics Market: Pricing Trends (Singapore), 2006
Segment Polyamide (PA) Polycarbonate (PC) Polyoxymethylene (POM) Polybutylene Terephathalate (PBT) Others
Note: Others include PMMA, PPO, and PET Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Price ($/ton) 3,500 3,000 1,900 2,400 2,000
06/05 Trend Up UP UP UP UP
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Pricing Trends (Contd...)

The engineering plastics industry is affected by increasing cost of raw materials. Prices for raw materials that come from crude oil and crude oil derivatives have been on the rise starting mid 2004, and are expected to continue to grow for the next 3 to 5 years. According to the increasingly intense energy supply scenario around the world, it is projected that raw materials cost will remain high. The prices of most types of engineering plastics have been on an upward path since 2004. The prices of some types of engineering plastics such as PC decreased slightly at the end of 2006 because of the oversupply scenario in the market, following increase in competition in the engineering plastics market. Prices are expected to continue showing an upward trend in the next 3 to 5 years, and remain stable at the high level.
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Engineering Plastics Market: Competitive Structure (Singapore), 2006
Number of Companies in the Market Types of Competitors Distribution Structure Tiers of Competition Notable Acquisitions, Mergers, Expansion 15 to 20 Multinationals, importers/traders Suppliers/manufacturers to end users Suppliers/manufacturers to distributors or end users 1 tier, multinationalsforeign and domestic GE announces sale of GE Plastics business to Saudi Basic Industries Corporation (SABIC) ASAHI entered into a joint venture with Mitsubishi Gas Chemical Company Inc. (MGC) in Singapore, for the production of modified PPO resin and its intermediate. Its MPPO production was 69 kt in 2006. DuPont Engineering Polymers selected Singapore for the expected investment in two of its highest-growth businesses DuPont Zytel HTN, highperformance polyamide expected to come on stream in 2009 and DuPont Vespel parts and shapes expected to be operational in 2007 . Key End-user Groups Competitive Factors Electronics and electrical, automotive sector, household and consumer products, Other general purpose plastics Quality of products, price, innovation and new products Source: Frost & Sullivan
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Demand Analysis
PA Market: Demand Analysis by Grade (Singapore), 2006
Grade PA 66 PA 6 TOTAL
2006 (%) 66.0 34.0 100.0

Two of the most popular grades of PA are PA 6 and PA 66. The demand for PA 66 is larger than the demand for PA 6. The application of PA 66 has been decreasing in the past 3 to 5 years, as the application of PA 66 is growing limited, and it has been increasingly replaced by LCP and PPS. It contributed approximately 66 percent of the PA market, while PA 6 held 34 percent of the total PA market. The Singapore market is more sophisticated than the Malaysian and Thai markets, and that is represented in the usage of PA 66 and PA 6. PA 66 is the higher quality PA, and is more expensive of the two. Most of the demand in the Singapore market is for higher grade PA 66.
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Demand Analysis (Contd...)

PA Market: Demand Analysis by End Users (Singapore), 2006 End-user Electronics Automotive Others TOTAL 2006 (%) 80.0 15.0 5.0 100.0
Note: Others include business machinery, household products, medical devices, and information storage
The end users of PA in Singapore show preference for the electronics sector rather than the automotive sector. The automotive industry represented only about 15 percent, while the electronics sector represented about 80 percent of the total demand. The other 5.0 percent goes to electrical and household goods, and other general-purpose uses.
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Market Share Analysis

PA 6 Market: Market Share Analysis (Singapore), 2006
Company BASF Dupont Toray Others TOTAL

Note: Others include DSM, Lanxess, and so on
Share (%) 50.0 10.0 10.0 30.0 100.0

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Market Share Analysis (Contd...)

Others 30.0%
BASF 50.0%
Toray 10.0%
Dupont 10.0%
Note: All figures are rounded. Source: Frost & Sullivan
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Market Share Analysis (Contd)

Company Dupont BASF Asahi Kasei Toray Others TOTAL

Note: Others include Solutia, Rhodia, Lanxess, and so on
Share (%) 50.0 15.0 10.0 5.0 20.0 100.0
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Others 20.0% Toray 5.0%
Dupont 50.0%
Asahi Kasei 10.0%
BASF 15.0%
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In 2006, BASF emerged as the major competitor in the PA 6 market. The company represented about 50 percent of the total market share, while Dupont and Toray each held 10 percent of the total market share. In 2006, DuPont was the top PA 66 engineering plastic manufacturer in Singapore. The company represented about 50 percent of the PA 66 market. BASF followed closely behind with 15 percent, and Asahi came in third, with 10 percent of revenue share in Singapore. The top three companies held 75.0 percent of the total market revenue.
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Demand Analysis
PC Market: Demand Analysis by End Users (Singapore), 2006 End-user Electronics Disc Automotive TOTAL 2006 (%) 55.0 40.0 5.0 100.0
Singapore is a major hub for high-end electronics manufacturing such as laptops and printers for the Asian region. Coupled with that, Singapore is also one of the centers that manufacture and supply quality car parts and accessories. Demand for PC plastics is largest from the electrical and electronics sector, followed by the disc sector and automotive applications. The electronics sector held about 55 percent of the total demand for PC, while the disc industry contributed about 40 percent of the total demand.
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PC Market: Market Share Analysis (Singapore), 2006
Company GE MEP Teijin Bayer Others TOTAL

Note: Others include Dow, LNP, so on
Share (%) 50.0 25.0 10.0 7.0 8.0 100.0
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PC Market: Market Share Analysis (Singapore), 2006
Bayer 7.0% Teijin 10.0%
Others 8.0%
MEP 25.0%
GE 50.0%
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In 2006, there were three dominant PC multinationals in Singapore. The market share leader was GE Plastics that represented a significant 50 percent of the total PC market in Singapore. It was followed by MEP, with 25 percent of the total market share, while Teijin trailed with about 10 percent share. The other companies, each having market shares of seven percent or less are Bayer, LNP, and Dow Plastics. The market share leaders were GE Plastics, Teijin, and MEP. GE Plastics has a compounding plant in Thailand, set up in 2000. The company has managed to increase some market share as a result of innovations such as new quality PC blends. In 2005, it increased its capacity by adding two production lines, and are currently compounding 32,000 MT per year. MEP has production and compounding factories in Thailand. The company has managed to increase its market share by being able to support its clients with cost-effective products from its manufacturing plant in Thailand. Teijin has a production plant in Singapore, with a capacity of 220,000 MT per year, and has compounding factories, both in Singapore and Thailand.
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Demand Analysis
POM Market: Demand Analysis by End Users (Singapore), 2006 End-user Electrical and Electronics Automotive Others TOTAL 2006 (%) 65.0 25.0 10.0 100.0
Note: Others include precision components, construction materials, toys, and others Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Polyacetals or POMs are also used primarily in the electrical, electronics, and automotive industries. Examples of its use can be found in AV equipment such as VCRs, CD/laser disk/MD players, radio cassettes, headphone stereos, OA equipment such as printers, keyboards, and CD-ROM drives, home electrical appliances such as washing machines and dryers, and auto parts such as seat belt mechanical components, outer door mirrors, door mirrors, and engine room components, as well as precision components used in such products as cameras and watches, construction materials, toys such as game machines, and stationery. However, the usage of POM in Singapore has declined significantly in the past 3 years, and this trend is expected to continue because of the market shift of electrical and electronics industry to other low production cost countries such as China and Vietnam.
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POM Market: Market Share Analysis (Singapore), 2006
Company Polyplastics and Ticona Asahi Kasei MEP Dupont BASF Others TOTAL
Note: Others include Nanya and other smaller importers/traders, and so on Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Share (%) 45.0 20.0 15.0 10.0 5.0 5.0 100.0
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POM Market: Market Share Analysis (Singapore), 2006
Dupont 10.0%
BASF 5.0%
Others 5.0%
Polyplastics and Ticona 45.0%
MEP 15.0%
Asahi Kasei 20.0%
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In 2006, there were two large multinational companies, each having more than 20 percent market share, and two multinational companies with more than a 10 percent share each in the POM market in Singapore. The competition is high in this segment, but relatively lower than the PC market, as there are more suppliers chasing a smaller market in the POM segment. POM is sold directly to the end users or to the distributors. The top four market shareholders were Polyplastics and Ticona, with 45 percent market share, followed by Asahi Kasei with 20 percent, MEP with 15 percent and Dupont with 10 percent. The fifth largest revenue shareholder was BASF with 5 percent. Polyplastics is a Japanese company that has expanded production to Malaysia. It emerged as the dominant manufacturer of POM in Malaysia and Thailand. The plant capacity of 33,000 MT in Malaysia is sufficient to supply the market in these three countries and to make a faster delivery to the clients. Ticona sells POM through Polyplastics distribution channel in Singapore.
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Demand Analysis
PBT Market: Demand Analysis by End Users (Singapore), 2006 End-user Electrical and Electronics Others TOTAL 2006 (%) 90.0 10.0 100.0
Note: Others include automotive, telecommunications, and precision engineering applications
The largest demand for PBT plastics came from electrical and electronics applications. Some PBT plastics are also used in the automotive sector. Approximately 90 percent of PBT plastics were used in the electrical and electronics sector, while the remaining percentage was used in the automotive and other industry sectors. PBT plastic is generally used in precision system and office automation systems. It is used in CD ROMs, printers, keyboards, and gears in watches, floppy disks, cameras, and recorders. PBT is also used in automobile parts such as in-car electronic products and outer door handles. Despite the fact that Singapore has been seeing the shrinking of electronics industry and does not have an automotive industry of its own, the growth in the Asian automotive market such as in Thailand and China provides a huge market and opportunity for exports of Singapore auto parts molders or manufacturers. Demand for PBT plastics is expected to remain stable in the next 3 to 5 years.
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PBT Market: Market Share Analysis (Singapore), 2006
Company GE Bayer MEP Toray Others TOTAL
Note: Others include Polyplastics, Nanya, Dupont, and BASF Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Share (%) 20.0 20.0 15.0 15.0 30.0 100.0
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PBT Market: Market Share Analysis (Singapore), 2006
Others 30.0%
GE 20.0%
Toray 15.0%
Bayer 20.0% MEP 15.0%
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There are about eight competitors in the PBT market in Singapore. There are four large multinational companies that hold more than 15 percent share each in the market. The competition in the PBT segment is high as this market is much smaller than the PC and POM markets. End users of PBT engineering plastics are more price-sensitive than the end users of other segments. This is because PBT, like POM and ABS is the lower range product segment of the engineering plastics market. Products that lie in the lower range of a segment usually are more price-sensitive than those in the upper ranges. GE Plastics and Bayer were the largest market shareholders. They lead the market, each with about 20 percent unit share, while MEP and Toray trailed behind, each holding approximately 15 percent of the total PBT market share, respectively. Market shares have remained relatively stable in this segment, as they have not been aggressively pursuing this market. Companies such as MEP focus on PC and POM, while Polyplastics focuses on POM as well. Toray on the other hand, is strong in ABS and other styrenic polymers.
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Demand Analysis
The market for other engineering plastics in Singapore consists primarily of polyethylene (PET), polymethylmethacrylate (PMMA), polyphenylene oxide (PPO), and others. The other engineering plastics segment is small in Singapore compared to the PC engineering plastics segment. The major product in the other engineering plastics market is PPO. The PPO blends can be market-tailored to performance; they can be optimized for processing and used to enhance productivity in application areas such as computers, office automation equipment, electrical and electronic appliances, and telecommunications.
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Other Engineering Plastics Market: Market Share Analysis (Singapore), 2006
Company GE Dupont Others TOTAL
Note: Others include Teijin, Asahi Kasei, and so on Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Share (%) 70.0 15.0 15.0 100.0
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Other Engineering Plastics Market: Market Share Analysis (Singapore), 2006
Others 15.0% Dupont 15.0%
GE 70.0%
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There were about four major competitors in the other engineering plastics market in Singapore in 2006. The largest and most active competitor in the market was GE Plastics, which supplied over half of the other engineering plastics or the majority of PPO and PET in Singapore. Dupont also sold around 1000 MT PET per year to the Singapore market in 2006. The other companies such as Teijin and Asahi Kasei together held a minor share of the other engineering plastics market. Competition in this segment is not as intense as in the other segments because they do not supply the same engineering plastics.
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Malaysian Engineering Plastics Market

Malaysias gross domestic product (GDP) experienced a positive growth of 5.2 percent, 7.5 percent, and 5.2 percent from 2004 to 2006, respectively. In 2007, Malaysias GDP grew at approximately 5.9 percent. The economy is set to grow at a bigger percentage in 2007. This is due to the expected increase in exports as a result of the healthy global economy. The market for engineering plastics is highly dependent on the economic conditions, with the demand being mainly spurred by the industrial and automotive sectors. The engineering plastics market in Malaysia was approximately 57.7 thousand tons in 2006. Growth for this market was approximately 6.1 percent in the same year. The engineering plastics market in Malaysia has tremendous potential since the country is likely to continue developing.
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Engineering Plastics Market: Market Engineering Measurements (Malaysia), 2006
Measurement Name Market age Units (in base year 2006) Potential units (in year 2013) Base year market growth rate Compound annual growth rate Price sensitivity Price range Number of products Competitors (active market competitors in 2006) Degree of competition Measurement Mature Stage 57.7 kt 85.9 kt 6.1% 5.8% High $1,700 to 4,000/ton 5 15 to 20 7 Trend Increasing Increasing Increasing Increasing Increasing Increasing Stable Increasing
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Market Drivers
Engineering Plastics Market: Market Drivers Ranked in Order of Impact (Malaysia), 2007-2013
Rank 1 2 3 4 5 Driver Growth in the automotive industry Growth in electronic and electrical industry Rapid development of engineering plastics industry Growing and healthy U.S. economy Investments in the Malaysian engineering plastics market 1-2 Years High High High High Medium 3-4 Years High High High Medium Medium 5-7 Years High High High Medium Medium
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Growth in the Automotive Industry Malaysia is the main producer and exporter of vehicle parts, components, and accessories, which have found acceptance in many foreign countries including Thailand, Singapore, Taiwan, Indonesia, Japan, and the United Kingdom. Major automotive companies such as Mercedes, Mazda, Ford, General Motors, Suzuki, Nissan, and Mitsubishi are increasingly making use of Malaysian products due to their excellent quality and competitive prices. Apart from automotive parts and components, Malaysia also produces complete motor cars and motor cycles. Manufacturers such as Proton and Perodua have penetrated over 40 markets, worldwide, convincing customers of the valuefor-money of the Malaysian cars. Currently, motorcycles are mainly being exported to Singapore, Greece, Iran, Vietnam, Turkey, Argentina, Malta, and Mauritius. Growth of the automotive manufacturing industry is driving the demand for engineering plastics in Malaysia. The automotive component industry experienced a growth in demand as a result of the national policy to develop an automotive manufacturing industry in Malaysia.
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Growth in Electronic and Electrical Industry The electronics and electrical industry uses a large percentage of engineering plastics such as PC, POM, ABS, PBT, and PET. Malaysia is one of the leading electrical and electronics product exporters, worldwide. Almost 1000 companies in this industry are incorporated into Malaysia. The industry includes major brands such as Panasonic, Sony, Philips, and Samsung, and local brands such as MEC, Khind, and Pensonic. The production range includes air-conditioners, refrigerators, washing machines, vacuum cleaners, electric fans, instant water heaters, rice cookers, blenders, and microwave ovens. Malaysia is currently investing in R&D in order to expand its production to include more sophisticated high-end products such as silicon ingots, polishing silicon wafers, RFID, chip design, digital video disc players, electronic games, multimedia products and high resolution TFT-LCD and LED plasma displays. The healthy and stable development of electronics and electrical industry drives the growth of engineering plastics market in Malaysia.
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Rapid Development of Engineering Plastics Industry Advancement in technology increases the application areas of engineering plastics. Trends driving the use of plastics in the automotive industry include cost and weight reduction, production efficiency, better structural functions, noise reduction, and aesthetics. New engineering plastics are developed every year for tougher performance, higher quality, and wider applications. Advanced polymer composites and engineering plastics are also used in aircraft owing to plastics excellent qualities such as stiffness, dimensional stability, and comparatively lighter weight, compared to other materials. As there still are tremendous opportunities for technological advancement and product improvement, the driver is expected to continue having high impact on the growth of the engineering plastics industry.
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Growing and Healthy U.S. Economy Growing and healthy U.S. economy drives demand for engineering plastics in Malaysia. The United States accounts for approximately 18.8 percent of the total exports. The United States and Malaysia launched negotiations for a bilateral free trade agreement (FT A) in June 2006. The United States is also the largest foreign investor in Malaysia. The U.S. companies are particularly active in the energy, electronics, and manufacturing sectors. The cumulative value of U.S. private investment in Malaysia exceeded $10 billion in 2005. IT hardware and electronics sector accounted for more than 60 percent of the total exports to the United States, corresponding to approximately half of the demand for engineering plastics in Malaysia. A healthy global economy and the economic growth in the United States from 2004 to 2006 has resulted in the growing demand for consumer electronics products that use engineering plastics.
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Investments in the Malaysian Engineering Plastics Market Low production costs in Malaysia that spur investments for engineering plastics plants are likely continue driving the engineering plastics industry in Malaysia. Domestically produced engineering plastics resins have advantages of lower manufacturing costs, logistics, and taxes, making them more competitive compared to imported resins. Companies such as BASF and Toray formed a joint venture for PBT production. The newly formed company, Toray BASF PBT Resin Sdn. Bhd., has a world-scale PBT plant, with an annual capacity of 60,000 metric tons at BASFs Verbund site in Kuantan, Malaysia. Polyplastics have a manufacturing plant in Malaysia, with a 33,000-ton-peryear capacity to produce POM. Such investments have made Malaysia a major competitor in the engineering plastics market in Southeast Asia.
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Market Restraints
Engineering Plastics Market: Market Restraints Ranked in Order of Impact (Malaysia), 2007-2013
Rank 1 2 3 4 5 Restraint End-user industries shift Increasing cost of raw materials Lack of resources for R&D Competition from traditional materials Performance limitations 1-2 Years High High Medium Medium Medium 3-4 Years High High Medium Medium Medium 5-7 Years High High Low Low Low
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End-user Industries Shift China and India have been a continuous booming economic growth center over the past decade. With China entering the WTO, the Chinese Government has been decreasing industrial duties year by year. This movement has become a great encouragement for Southeast Asian engineering plastics manufacturers, and at the same time, a huge threat for the local participants. The end-user industries such as auto making, electronics, electrical, and other household consumer products manufacturing are likely to consider relocating from Malaysia to other countries such as China, India, Thailand, or Indonesia to take advantage of the lower production costs. This shift has contributed to a decline in growth of the engineering plastics market in Malaysia Increasing Cost of Raw Materials Rising costs of raw materials put upward pressure on prices. The production of engineering plastics is highly dependent on the raw materials that come from crude oil and crude oil derivatives. The continuing rise in crude oil prices is causing prices of raw materials to increase sharply. Crude oil was priced at approximately $60-70 per barrel in 2006, increasing from a low of $25 in 2003, which has substantially increased production costs for engineering plastics companies. These companies are finding it difficult to generate high profits because rise in prices is insufficient to cover increases in the production costs.
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Lack of Resources for R&D The lack of resources for R&D stunts growth of new engineering plastics applications. New engineering plastics application areas are typically researched and developed in the western countries. The climatic conditions vary, and the durability of engineering plastics is different under different conditions. The Asian engineering plastics companies lack the resources to customize R&D for their market and end users. As a result, new applications are less likely to be discovered for Asia. This restraint is likely to limit the growth of the engineering plastics market in Malaysia. Improvements and changes are expected to be slow. Competition from Traditional Materials Engineering plastics still face tough competition from traditional materials and commodity plastics in some market segments. The use of engineering plastics has grown but their penetration rate is still small. Although engineering plastics are clearly the better materials in terms of appearance and durability, metals such as copper remain the most widely used material for casings and wiring in Malaysia, and aluminum and other metals are still being used to make canopies, shades, and containers. New and cheaper engineering plastics need to rival the cost of alternative materials, for the industry to have better penetration.
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Performance Limitations The performance of engineering plastics is limited by their chemical and physical properties, which restricts their applications in potential markets. The amount of temperature that a material can withstand is an important consideration. A major disadvantage of using engineering plastics is its limited use within the temperature range of minus 50 degrees Celsius to 200 degrees Celsius, while in some instances, metallic casings can be used at higher working temperatures.
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Engineering Plastics Market: Unit Shipment Forecasts (Malaysia), 2003-2013 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Units ('000 tons) 48.5 51.3 54.4 57.7 61.2 65.1 69.3 73.9 77.6 81.6 85.9 Unit Growth Rate (%) 6.0 5.8 6.0 6.1 6.1 6.3 6.5 6.6 5.1 5.1 5.2

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Engineering Plastics Market: Unit Shipment Forecasts (Malaysia), 2003-2013
Units ('000 tons) 100 90 80 Units ('000 tons) 70 60 50 40 30 20 10 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan 0 5 Unit Growth Rate (%) . Unit Growth Rate (%) 10
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Engineering Plastics Market: Unit Shipment Forecasts by Segment Type (Malaysia), 2003-2013
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
3.6 3.8 4.1 4.3 4.5 4.7 5.0 5.2 5.4 5.5 5.7
6.0 6.0 6.0 6.0 5.0 5.0 5.0 5.0 3.0 3.0 3.0
27.0 29.5 32.1 35.0 38.2 41.6 45.3 49.4 52.9 56.6 60.5
9.0 9.0 9.0 9.0 9.0 9.0 9.0 9.0 7.0 7.0 7.0
10.6 10.4 10.2 10.0 9.8 9.6 9.4 9.2 9.0 8.9 8.7
(2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0) (2.0)
5.5 5.8 6.1 6.4 6.7 7.1 7.4 7.8 8.0 8.3 8.5
5.0 5.0 5.0 5.0 5.0 5.0 5.0 5.0 3.0 3.0 3.0
1.7 1.8 1.9 2.0 2.1 2.1 2.2 2.3 2.3 2.4 2.5
5.0 5.0 5.0 5.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0
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Engineering Plastics Market: Percent of Units by Plastic Type (Malaysia), 2003-2013 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 PA (%) 7.4 7.5 7.5 7.5 7.4 7.3 7.2 7.1 6.9 6.8 6.7 PC (%) 55.7 57.4 59.0 60.6 62.2 63.8 65.3 66.9 68.2 69.3 70.4 POM (%) 21.9 20.3 18.8 17.3 16.0 14.8 13.6 12.5 11.6 10.9 10.1 PBT (%) 11.4 11.3 11.2 11.1 11.0 10.8 10.7 10.5 10.3 10.1 9.9 Others (%) 3.6 3.5 3.5 3.5 3.4 3.3 3.2 3.0 3.0 2.9 2.9
Note: Others include polystyrene (PS), polyphenylene oxide (PPO), polyethylene terephthalate (PET), and others Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
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The engineering plastics market witnessed a growth rate of 6.1 percent in 2007, and is expected to witness a growth rate of approximately 6.6 percent in 2010. The high growth rates are a result of the robust automotive and electronics appliance industries in Malaysia. On the other hand, the Malaysian Government is under tremendous pressure to open up the Malaysian automotive industry with its Southeast Asian neighbors, under the AFTA agreement . Competition in the automotive industry in Southeast Asia is likely to intensify, and when that happens, Malaysia is likely to find itself losing foreign investments to more cost-effective countries such as Thailand. Unit shipment for the engineering plastics market was 48,500 tons in 2003. Since then, growth has been quite stable, between 5.8 and 6.1 percent per annum. Unit shipment for the market was 57,700 tons in 2006 in Malaysia. After 2006, growth within this market is expected to range between 6.1 percent in 2007 and 5.2 percent in 2013, when the market is forecast to reach an estimated 85,900 tons in 2013. The compound annual growth rate (CAGR), in terms of unit shipment, for the period from 2006 to 2013 is anticipated to be 5.8 percent.
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There are five major segments in the engineering plastics market. They are PA, PC, POM, PBT, and other engineering plastics types. The PC market in Malaysia generated the largest amount of revenue in 2006, making up an estimated 60.7 percent of the entire engineering plastics market units, while the second largest segment, POM, held approximately 17.3 percent of the total market units. The third engineering plastics segment, which is the PBT segment, represents 11.1 percent of the total units. The POM segment is expected to witness a biggest decline in its unit share over the course of the forecast period, while the PC segment is expected to witness further gain in it shares. The PA, PBT, and other engineering plastics are expected to grow more steadily and experience slight slumps in their unit shares. The PC segment is expected to hold approximately 70.5 percent of the total market share in 2013, while POM segment shares are forecast to decrease to 10.1% in the same year.
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Pricing Trends
Engineering Plastics Market: Pricing Trends (Malaysia), 2006
Segment Polyamide Polycarbonate Polyoxymethylene Polybutylene Terephathalate Others
Price ($/ton) 3,500 3,100 2,000 2,300 2,000
06/05 Trend Up UP UP UP UP
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The engineering plastics industry is affected by increasing cost of raw materials. Prices for raw materials that are derived from crude oil and crude oil derivatives have been on the rise starting mid 2004, and the trend is expected to continue in the next 3 to 5 years. According to the increasingly intense energy supply scenario around the world, it is projected that raw materials cost will remain high. The price of most types of engineering plastics has been on an upward path since 2004. Basically, there is no price differences between Singapore, Malaysia, and Thailand for most types of engineering plastics. However, if some types of engineering plastics have domestically production part, the price might be slightly lower than in neighboring countries. For example, the price of PBT plastics in Malaysia is around $100 less than in Singapore and Thailand because BASF and Toray have production plants in Malaysia.
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Engineering Plastics Market: Competitive Structure (Malaysia), 2006
Number of Companies in the Market Types of Competitors Distribution Structure Tiers of Competition Notable Acquisitions, Mergers, Expansion 15 to 20 Multinationals, importers/traders Suppliers/manufacturers to end users Suppliers/manufacturers to distributors or end users 1 tier, multinationalsforeign and domestic BASF strengthened its business with engineering plastics in Asia by building new production facilities in China and Malaysia Toray entered into an alliance with BASF to form Toray BASF PBT Resin Sdn. for PBT manufacturing at BASFs Verbund site in Kuantan, Malaysia Polyplastics has/formed an alliance with Ticona in the United States, and formed a joint venture with Teijin to produce PBT and PET Key End-user Groups Competitive Factors Electronics and electrical, automotive sector, household and consumer products, other general purpose plastics Quality of products, price, innovation and new products Source: Frost & Sullivan
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Demand Analysis
PA Market: Demand Analysis by Grade (Malaysia), 2006
2006 (%) 74.0 26.0 100.0

Two of the most popular grades of PA are PA 6 and PA 66. Like Thailand, the demand for PA 6 was also less than the demand for PA 66. PA 66 held approximately 74 percent of the total PA market, while PA 6 contributed the other 26 percent of the market.There are also other grades of PA available in the Malaysian market such as PA 11 and PA 12. The higher grade PA 66 is typically dominated by the large engineering plastics manufacturers such as DuPont, Asahi, and BASF, while the lower grade PA 6 is dominated by BASF and Toray.
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PA Market: Demand Analysis by End Users (Malaysia), 2006 End-user Electronics Automotive Others TOTAL 2006 (%) 45.0 45.0 10.0 100.0
Note: Others include business machinery, household products, medical devices, and information storage
The automotive and electronics industries were the two largest end users of PAs. They each consumed almost 45 percent of the total PA market in Malaysia. There is an increased emphasis on new applications to further diversify the application areas and lessen dependence on the automotive industry. There are increasing opportunities in telecommunications sector, information technology systems, and computers such as connectors and new conductive materials for electromagnetic interference shielding.
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PA 6 Market: Market Share Analysis (Malaysia), 2006
Company BASF Toray Others TOTAL

Note: Others include MEP, Ube, Lanxess, and so on
Share (%) 35.0 20.0 45.0 100.0
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Others 45.0%
BASF 35.0%
Toray 20.0%
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Company Dupont Asahi Kasei Toray BASF Others TOTAL

Share (%) 40.0 20.0 15.0 15.0 10.0 100.0
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BASF 15.0%
Others 10.0%
Dupont 40.0%
Toray 15.0%
Asahi Kasei 20.0%
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In 2006, BASF and Toray emerged as the major competitors in the PA 6 polyamide market. BASF represented approximately 35 percent of the total PA market, while Toray held 10 percent of the total market. In 2006, DuPont was the top PA 66 engineering plastic manufacturer in Malaysia. representing approximately 40 percent of the total PA 66 market. Asahi followed behind with 20 percent, and Toray and BASF came in third, with each holding 15 percent of the unit share in Malaysia. The top four companies held a total of 90.0 percent of the PA66 market revenue.
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Demand Analysis
PC Market: Demand Analysis by End Users (Malaysia), 2006 End-user Disc Automotive Electronics TOTAL 2006 (%) 40.0 10.0 50.0 100.0
PC plastics can be used in a variety of applications. In Malaysia, they are widely used in electronics and electrical products such as business machinery, household appliances, packaging, and medical devices. The latest and largest single use has been the injection-molded compact discs. The more CDs are burned, the more PCs are needed to make discs. CD and other optical media, including standard CDs and CD-ROMs, held about 40 percent of the total PC market.
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PC Market: Market Share Analysis (Malaysia), 2006
Company GE Teijin Bayer Others TOTAL

Note: Others include Dow, MEP, and so on
Share (%) 30.0 18.0 18.0 34.0 100.0
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PC Market: Market Share Analysis (Malaysia), 2006
Others 34.0%
GE 30.0%
Bayer 18.0%
Teijin 18.0%
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The large multinationals such as GE Plastics, Bayer, and Teijin, until recently, were the dominant competitors in the PC market. However, since the onset of the financial crisis in Southeast Asia, end users have been switching to products manufactured in countries such as Taiwan and Japan. A fair number of new entrants have entered the market in Malaysia. The major competitive factor in the Malaysian PC market is price. Pricing has become an important factor in end-user decisions because of the over supply scenario in the market. Technical support is also an important factor in this market. Technical support enables efficient and correct usage of plastics. GE is the leading multinational supplier of PC plastics in Malaysia. It held approximately 30.0 percent of the total market share in 2006, followed by Teijin and Bayer, each contributing approximately 18 percent of the total market share. The top three competitors together held almost 66 percent of the total market revenues.
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Demand Analysis
POM Market: Demand Analysis by End Users (Malaysia), 2006 End-user Electrical and electronics Automotive Household products Others TOTAL
Note: Others include medical devices, sports gears, and other industry sectors Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
2006 (%) 40.0 30.0 20.0 10.0 100.0
The demand for POM has been decreasing in the recent few years in Malaysia. The electrical and electronics sector was the largest end user of POM in 2006, accounting for close to 40 percent of Malaysias total consumption of POM. The automotive industry is expected to become a larger consumer of POM. Main application areas are windshield wiper system, loudspeaker, and ventilation grills in the rear of vehicle, fuel tank caps, fuel pump casings, and safety belt mechanism. Other smaller areas of consumption are household and office equipment, medical devices, sports gears, and medical equipment.
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POM Market: Market Share Analysis (Malaysia), 2006
Company Polyplastics MEP Asahi Kasei KEP Dupont BASF Others TOTAL
Note: Others include Nanya, Toray, and other smaller importers/traders Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Share (%) 55.0 10.0 10.0 7.0 7.0 5.0 6.0 100.0
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POM Market: Market Share Analysis (Malaysia), 2006
Dupont 7.0% KEP 7.0%
BASF 5.0%
Others 6.0%
Polyplastics 55.0%
Asahi Kasei 10.0%
MEP 10.0%
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The POM market has the largest number of competitors among the five engineering plastics segments. POM is easier to manufacture compared to PAs and PCs, which explains the large number of manufacturers that are active in the market. Polyplastics has a large POM plant in Pahang, Malaysia, with a capacity of about 34,000 tons per year. The company was the market leader in the POM segment in 2006. It held approximately more than 60 percent of the total unit share. Five other competitors in the market held more than 5 percent market share, and two of which each representing over 10 percent of the total segment share. MEP and Asahi held the second position in the market, each contributing a share of 10 percent. KEP and Dupont trailed closely behind, each with a unit share of 7 percent, and BASF with approximately 5 percent unit share.
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Demand Analysis
PBT Market: Demand Analysis by End-user (Malaysia), 2006 End-user Electrical and electronics Others TOTAL 2006 (%) 90.0 10.0 100.0
PBT plastic in Malaysia is primarily used in the electrical and electronics industry, automotive, telecommunications and precision engineering applications. Approximately 90 percent of the total demand for PBT comes from electrical and electronics industry in Malaysia. Malaysia is the largest exporter of room air-conditioners and other major electrical appliances such as vacuum cleaners, immersion heaters, electric irons, rice cookers, and microwave ovens. The electronics sector comprises the audio and video equipment, CD-ROM drives, Color TV, compact, personal computers, telephone sets, satellite receivers, switches, monitors, and transformers. All these products use engineering plastics and the demand for PBT plastics is expected to increase in the coming five years.
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PBT Market: Market Share Analysis (Malaysia), 2006
Company GE Toray BASF PBT Resin Sdn MEP Polyplastics Others TOTAL
Note: Others include DIC, Dupont, and so on Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Share (%) 30.0 25.0 15.0 10.0 20.0 100.0
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PBT Market: Market Share Analysis (Malaysia), 2006
Others 20.0% Polyplastics 10.0%
GE 30.0%
MEP 15.0%
Toray and BASF 25.0%
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The PBT multinationals include those that import and redistribute PBT plastics to the Malaysian market, and those, that have production plants in Malaysia. Companies such as BASF and Toray have set up a production plants in Malaysia, while others such as GE Plastics have production bases Thailand that supply the market in Southeast Asia. GE Plastics is the largest market shareholder for PBT engineering plastics. The company represented almost 30 percent of the entire segment share of PBT. Toray has an alliance with BASF to form Toray BASF PBT Resin Sdn. for PBT manufacturing at BASFs Verbund site in Kuantan, Malaysia. Toray and BASF were placed second in the market, each contributing approximately 25 percent, while MEP held about 15 percent of the total unit share. Polyplastics in Malaysia held the fourth position in the market, with just 10 percent of the total market share. The top four competitors in total represented 80 percent of the total units of the PBT market in Malaysia.
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Demand Analysis
The other engineering plastics market consists predominately of PET, PMMA, and PPO. The PET engineering plastics make up the majority of the total other plastics segment in Malaysia. Demand for the other engineering plastics is expected to increase in future like the rest of the engineering plastics segments.
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Other Engineering Plastics Market: Market Share Analysis (Malaysia), 2006
Company Dupont GE Tejin Others TOTAL
Note: Others include MEP, Asahi, and so on Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Share (%) 50.0 32.0 10.0 8.0 100.0
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Other Engineering Plastics Market: Market Share Analysis (Malaysia), 2006
Tejin 10.0%
Others 8.0%
Dupont 50.0%
GE 32.0%
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There were only three large multinationals in the Malaysian market for the other plastics engineering segment. The three include Dupont, Teijin, and GE Plastics. These companies do not compete directly against one another since the plastics types they market differ. Dupont also sold around 1,000 tons PET per year to the Malaysia market, and held over 50 percent of the total share in this segment in 2006, while GE held the second position, with approximately 32 percent of the total segment share. Teijin trailed behind, with 10 percent of the total unit share.
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Thailand Engineering Plastics Market

The Thai economy is export-dependent, with exports of goods and services accounting for 68.6% of the gross domestic product (GDP) in 2006. Thailand's recovery from the 1997-98 Asian financial crisis relied largely on external demand from the United States and other foreign markets. Beginning in 2002, domestic stimulus and export revival fueled a better performance, with real GDP growth at 7.1% in 2003 and 6.3% in 2004. In 2005, the economy decelerated to a 4.5% annual GDP growth rate due to the tsunami catastrophe, drought, and violence in the three southernmost provinces. In 2006, the rebound of production in agriculture and manufacturing, coupled with soaring numbers of tourists, increased the GDP by 5.0% (year-on-year). The demand for engineering plastics resins comes primarily from the automotive and electronics sector. Thailand is projected to become the automotive hub of Southeast Asia, and this is expected to spur the growth of the engineering plastics market in the country. Other demand from engineering plastics comes from sectors such as consumer and business appliance, glazing, construction, medical devices, and sporting goods. The Thai market for engineering plastics was valued at approximately 142,500 tons in 2006. The outlook for the engineering plastics market in Thailand is positive for 2006, as most enduser industries are expected to continue expansion plans.
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Engineering Plastics Market: Market Engineering Measurements (Thailand), 2006
Measurement Names Market age Units (in base year 2006) Potential units (in year 2013) Base year market growth rate Compound annual growth rate Price sensitivity Price range Number of products Competitors (active market competitors in 2006) Degree of competition Measurement Development Stage 142.5 kt 288.6 kt 11.3% 10.6% High $1,700 to 4,000/ton 5 15 to 20 9 Trend Increasing Increasing Increasing Increasing Increasing Increasing Stable Increasing
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Market Drivers
Engineering Plastics Market: Market Drivers Ranked in Order of Impact (Thailand), 2007-2013
Rank 1 2 3 4 Driver Growth in the automotive industry Increase in electronic and electrical appliance manufacturing Healthy macroeconomic factors Rising urbanization and growing middle class families in thailand 1-2 Years High High High Low 3-4 Years High High High Low 5-7 Years High High High Low
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Growth in the Automotive Industry Growth in the automotive industry drives the demand for engineering plastics. Already the worlds second largest pick-up truck market and ASEANs largest automotive market and assembler, Thailand moved closer to realizing Detroit of Asia status, with unexpectedly strong 2005 market results. In 2005, its auto industry had a production capacity of 1,255,100 units, with the major automotive makers such as Toyota, Isuzu, Mitsubishi, and Auto Alliance forging ahead and investing heavily in new plants and equipment. Other automakers such as GM, Ford, and Mazda have also increased their investment in Thailand, and are expanding their operations. The Thai Government has set a goal of producing 1.8 million vehicles by 2010 to become one of the worlds top 10 automotive manufacturers. Thai automakers use engineering plastics in a variety of areas such as exterior body panels and glazing, lighting, power train, and structures and interiors. The growth in the automotive industry has a positive effect on the engineering plastics market in Thailand.
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Increase in Electronic and Electrical Appliance Manufacturing The market for engineering plastics is also highly dependent on the health of the electronics industry in Thailand. The electrical and household appliance sectors make up approximately forty percent of the demand for engineering plastics products in the country. The Thai economy is export-dependent, with exports of goods and services accounting for 68.6% of the total GDP in 2006. Thailands electronics industry, led by HDD and IC production, is a dynamic force behind the nations economy, comprising 12% of manufacturing output and 30% of exports. Currently, Thailand is among the top five major exporters of computer-related products and a major participant in the global market for several products, such as hard disk drives (HDDs), keyboards, and printed circuit boards (PCBs). News of a stable and growing U.S. economy is likely to increase demand for electronic exports from 2004 to 2007. This driver is expected to have a high impact throughout the forecast period.
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Healthy Macroeconomic Factors Macroeconomic factors such as foreign capital investment and ASEAN Free Trade Area (AFTA) in Thailand drive the growth of engineering plastics in Thailand. Thailands industry, like many Asian countries, is supported by foreign direct investments (FDIs). Much of the FDIs are directed toward the machinery, electronics, and automobile industries. Thailand is also a member of the World Trade Organization (WTO). The elimination of trade taxes and tariff under AFTA is likely to spur growth in the end-user industries such as the automotive, electrical, and electronics manufacturing, and consequently increase demand for engineering plastics in Thailand. Rising Urbanization and Growing Middle Class Families in Thailand The urban population and middle-class families in Thailand are the primary end users of consumer electronics and electrical goods that use engineering plastics materials. As the urban population and middle-class groups in Thailand continue to grow, demand for these consumer-ready products is likely to grow as well. Approximately, 32 percent of its population lives in urban areas and the annual urbanization rate in Thailand is 2.9 percent in 2005. Urbanization and a growing middle-class population is expected to drive the end-user markets further, and spur the engineering plastics market toward further expansion.
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Market Restraints
Engineering Plastics Market: Market Restraints Ranked in Order of Impact (Thailand), 2007-2013
Rank 1 2 3 Restraint Increasing cost of raw materials Erosion of profit margins due to stiff competition Volatile government policies and domestic political uncertainty 1-2 Years High High Medium 3-4 Years High High Medium 5-7 Years High High Medium
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Increasing Cost of Raw Materials Rising costs of raw materials put upward pressure on prices. The production of engineering plastics is highly dependent on raw materials that come from crude oil and crude oil derivatives. The continuing rise in crude oil prices is causing prices of raw materials to increase sharply. Crude oil was priced at approximately $60-70 per barrel in 2006, from a low of $25 in 2003. It has substantially increased production costs for engineering plastics companies, which are finding it difficult to generate high profits because rise in prices is insufficient to cover increase in production costs.
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Erosion of Profit Margins due to Stiff Competition Many of the existing engineering companies in Southeast Asia are beginning to lose some of their competitive advantage. Increasing globalization is expected to result in the relocation of end-user companies out of Thailand to other booming Asian countries such as India or China. The end-user industries such as the auto making, electronics, electrical, and other household consumer products manufacturing have been experiencing tight margins since the 1997 financial crisis. In 2006, the engineering plastics market experienced increased competition from imported engineering plastics from countries such as Taiwan and South Korea. New manufacturing plants have also recently been set up in Malaysia, for example BASF and Toray formed joint venture for PBT plastics production, which poses a threat to Thai manufacturers and importers, and cuts into the profits of engineering plastics companies. This situation is expected to negatively impact the engineering plastics industry. The impact of this restraint is projected to remain high throughout the forecast period.
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Volatile Government Policies and Domestic Political Uncertainty The Thai Government welcomes foreign investment, to attract additional foreign investment, the government has modified its investment regulations. The amendments to its Foreign Business Act are expected to be passed during 2007, which would apply greater restrictions on the ability of non-Thais to own or control businesses, when operating in Thailand. On the other hand, although the appreciation of the Thai baht to the U.S. dollar relative to other regional currencies during the 2006-2007 period has not yet shown any significant dampening of Thai exports, the export sector margins have been affected. Due to domestic political uncertainty and concern about government's economic policies, Thai domestic demand and private investment were flat from early 2006, and are expected to remain flat in 2007 as well. This restraint is likely to limit the growth of the engineering plastics market in Thailand.
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Engineering Plastics Market: Unit Shipment Forecasts (Thailand), 2003-2013 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Units ('000 tons) 103.5 115.1 128.0 142.5 158.7 176.7 196.9 219.5 240.4 263.4 288.6 Unit Growth Rate (%) 11.2 11.2 11.2 11.3 11.3 11.4 11.4 11.5 9.5 9.5 9.6

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Engineering Plastics Market: Unit Shipment Forecasts (Thailand), 2003-2013
350 300
Units ('000 tons)
15
Unit Growth Rate (%)
250 200 150 100 50 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Year
10
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Engineering Plastics Market: Unit Shipment Forecasts by Segment Type (Thailand), 2003-2013
PA Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Units (kt) 9.5 10.3 11.1 12.0 13.0 14.0 15.1 16.3 17.6 19.0 20.6 UGR (%) 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 Units (kt) 59.8 67.0 75.0 84.0 94.1 105.4 118.0 132.2 145.4 159.9 175.9 PC UGR (%) 12.0 12.0 12.0 12.0 12.0 12.0 12.0 12.0 10.0 10.0 10.0 POM Units (kt) 13.2 15.1 17.4 20.0 23.0 26.5 30.4 35.0 39.2 43.9 49.1 UGR (%) 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 12.0 12.0 12.0 PBT Units (kt) 5.2 5.6 6.0 6.5 7.0 7.6 8.2 8.8 9.4 9.9 10.5 UGR (%) 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 6.0 6.0 6.0 Others Units (kt) 15.9 17.1 18.5 20.0 21.6 23.3 25.2 27.2 28.8 30.6 32.4 UGR (%) 8.0 8.0 8.0 8.0 8.0 8.0 8.0 8.0 6.0 6.0 6.0
Key: UGR=Unit Growth Rate Note: Others include polystyrene (PS), polyethylene terephthalate (PET), polyphenylene oxide (PPO), polymethylmethacrylate (PMMA)
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Engineering Plastics Market: Percent of Units by Plastic Type (Thailand), 2003-2013 Year 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 PA (%) 9.2 8.9 8.7 8.4 8.2 7.9 7.7 7.4 7.3 7.2 7.1 PC (%) 57.8 58.3 58.5 58.9 59.3 59.6 59.9 60.3 60.5 60.7 61.1 POM (%) 12.7 13.1 13.6 14.1 14.5 15.0 15.4 15.9 16.3 16.7 17.0 PBT (%) 5.0 4.8 4.7 4.6 4.4 4.3 4.2 4.0 3.9 3.8 3.6 Others (%) 15.3 14.9 14.5 14.0 13.6 13.2 12.8 12.4 12.0 11.6 11.2
Note: Others include polystyrene (PS), polyethylene terephthalate (PET), polyphenylene oxide (PPO), polymethylmethacrylate (PMMA) Note: All figures are rounded. Source: Frost & Sullivan
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The engineering plastics market in Thailand was estimated to be approximately 103,500 tons in 2003. The market for engineering plastics continued to improve since the sluggish recovering of the Southeast Asian markets from the financial crisis. The market grew by approximately 11.2 percent in 2003. In 2006, the market for engineering plastics posted an increase of 11.3 percent to reach unit shipment of an estimated 142,500 tons in 2006. Frost & Sullivan expects the engineering plastics market to witness a constant high growth from 2007 onwards, underpinned by increasing production and growth of the automotive industry. The growth rate forecast for the engineering plastics market in Thailand in 2007 through 2013 is likely to range between 11.3 and 9.6 percent. Demand is forecast to be spurred by increases in manufacturing and assembly of automotive, electronics, toys, and other plastic products as more manufacturers relocate to Thailand from other Southeast Asian countries. This is forecast to spur the use of engineering plastics in Thailand. The compound annual growth rate (CAGR) of the engineering plastics market in Thailand is estimated to be 10.6 percent from 2006 to 2013, and the unit shipment is forecast to reach almost 288,600 tons by 2008.
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There are five major segments in the engineering plastics market. They are PA, PC, POM, PBT and other engineering plastics types. The largest unit segment of the engineering plastics market in Thailand is also PC, which held a dominating 58.9 percent of the total engineering plastics market in Thailand in 2006. POM and the other engineering plastics are the second largest segments, each representing about 14.0 percent of the total engineering plastics units in 2006. PA segment held about 8.4 percent of the total units, and PBT 4.6 percent of the total units. The highest growth areas in the engineering plastics market are the PC and POM plastic types. The PC segment is projected to increase its unit share to about 61.1 percent by 2013, while POM segment is expected to show continued growth to around 17.0 percent in 2013. PA, PBT, and the other engineering plastic types are expected to see a small decline in segment shares in 2013. Decline in percentage share is not to be interpreted as a decline in quantity demand or shipment, but rather a difference of growth rate of various engineering plastics types.
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Pricing Trends
Engineering Plastics Market: Pricing Trends (Thailand), 2006
Segment Polyamide Polycarbonate Polyoxymethylene Polybutylene Terephathalate Others
Price ($/ton) 3,500 3,000 2,000 2,300 2,000
06/05 Trend UP UP UP UP UP
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Prices of engineering plastics in Thailand typically follow the global price trend. The price of most types of engineering plastics has been on an upward path since 2004. A number of big engineering plastics MNCs such as GE, Bayer, MEP, and others have production plants in Thailand. However, basically there is not much price difference seen between Singapore, Malaysia, and Thailand for the engineering plastics market.
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Engineering Plastics Market: Competitive Structure (Thailand), 2006
Number of Companies in the Market Types of Competitors Distribution Structure Tiers of Competition Notable Acquisitions, Mergers, Expansion 15 to 20 Multinationals, importers/traders Suppliers/manufacturers to end users Suppliers/manufacturers to distributors or end users 1 tier, multinationalsforeign and domestic Bayer has a production plant for PC production in Thailand. It has expanded its production capacity from 170 kt/y in 2005 to 270 kt/y by 2007. Mitsubishi Engineering Plastics (MEP) has a joint venture with TOA Chemical Ind. Thailand to produce POM and PC. Mitsubishi Chemical Corporation is expected to build a new BPA manufacturing plant (150kt/y) in Map Ta Phut, Thailand and commercial production will commence from 2010. BPA is a raw material for PC production. GE has a compounding plant in Thailand with capacity of 32,000 t/y. Compounding includes, PC ABS, PC ASA, PC PBT, PBT, PPO, and color Compounding. GE plans to double up production by 2008. Key End-user Groups Competitive Factors
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Electronics and electrical, automotive sector, household and consumer products, Source: Frost & Sullivan other general purpose plastics Price, quality of products, innovation and new products
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Demand Analysis
PA Market: Demand Analysis by Grade (Thailand), 2006
2006 (%) 75.0 25.0 100.0

Two of the most popular grades of PA are PA 6 and PA 66. In Thailand, the demand for PA 6 is slightly less than PA 66. PA 66 held approximately 75.0 percent of the PA market, while PA 6 contributed the other 25.0 percent of the market. The higher grade PA 66 is typically dominated by the large engineering plastics manufacturers such as DuPont, Asahi, Toray, and BASF, while the lower grade PA 6 is dominated by smaller multinationals such as Ube, Bayer, and Toray.
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PA Market: Demand Analysis by End Users (Thailand), 2006 End-user Automotive Electronics Others TOTAL 2006 (%) 55.0 40.0 5.0 100.0
Automotive and electronics are two of the largest end users of PA plastics. The automotive industry consumed almost 55.0 percent of the total PA plastics imported by Thailand, while the electronics industry consumed about 40.0 percent of the PAs in Thailand. The other 5.0 percent are used by other industries categorized under general purposes.
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PA 6 Market: Market Share Analysis (Thailand), 2006
Company Ube Toray BASF TOTAL
Share (%) 50.0 35.0 15.0 100.0

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BASF 15.0%
Ube 50.0%
Toray 35.0%
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Company Dupont Asahi Kasei Toray BASF Others TOTAL

Share (%) 50.0 10.0 10.0 10.0 20.0 100.0
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Engineering Plastics Market: PA 66 Market (Thailand), 2006
Others 20.0%
Dupont 50.0%
BASF 10.0%
Toray 10.0%
Asahi Kasei 10.0%
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Most of the multinationals in the PA market import PA resins from abroad to redistribute in Thailand. However, a few companies manufacture PA resins/plastics in Thailand. Companies such as Ube have a plant in Thailand that produces PA 6 for local consumption. In 2006, DuPont remained the top PA 66 engineering plastic manufacturer in Thailand.Although the company does not have a plant in Thailand, it is able to leverage profitably from its PA plants in other regions of the world, for example Dupont has a plant in SG, and has plans to expand its production, and export them to Thailand. DuPont held about more than 50.0 percent of the PA 66 market, followed by Asahi Kasei, Toray, and BASF that trailed behind with 10.0 percent of the total market share. The top four companies held a combined share of 80.0 percent of the total market, which is about four-fifths of the total PA market in Thailand. In 2006, Ube emerged as the top PA 6 engineering plastics manufacturer in Thailand. The company has a plant to manufacture PA 6 in Thailand, and is able to use that as a selling factor to end users that aim to have a higher local content. Ube held about 50.0 percent of the total PA 6 market units.Toray followed closely behind with 35.0 percent, and BASF with 15.0 percent of market share.
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Demand Analysis
PC Market: Demand Analysis by End Users (Thailand), 2006 End-user Automotive Industry Disc Electronics Others TOTAL
Note: Others include construction materials, and other industry sectors Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
2006 (%) 45.0 38.0 15.0 2.0 100.0
Automobiles and discs accounted for 45.0 percent and 38.0 percent, respectively of the end-user application in the Thai market, respectively in 2006. PC plastics can be used in various industries. In Thailand, PC plastics growth is being supported by vigorous demand in automotive parts such as bumpers, skirting, and dashboards, optical use such as music CDs, housing for OA materials, and housing for EE materials. Further demand for PC plastics is seen for construction materials use such as sheets and films, packaging and storage, furniture and interior designs.
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PC Market: Market Share Analysis (Thailand), 2006
Company Bayer MEP Others TOTAL

Note: Others include Dow, Asahi Kasei, Teijin, GE, and so on
Share (%) 50.0 37.0 13.0 100.0
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PC Market: Market Share Analysis (Thailand), 2006
Others 13.0%
Bayer 50.0%
MEP 37.0%
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In the PC market, Thailand exports 79 percent of its total production to the world market. Whereas, the region saw a consumption of around 84,000 tons in 2006. Currently, Thailand is the second largest exporter of PC plastics, globally. In 2006, the country exported 298,754.00 tons of PC, following the United States. There are approximately 6 PC multinationals in Thailand including Bayer, MEP, Dow Chemicals, Asahi, Teijin, and GE. Distribution is largely done through distributors or agents such as Nagase, Inabata, Thai Polyplastic, Itochu,TPCC. Bayer Thailand tops the list of PC producers to emerge as the largest producer in Thailand. The company intends to increase its production in Thailand to 270,000 tons per year, to meet its global production of 1.2 million tons in 2007. MEP increased its annual PC production to 170,000 tons in 2007. Mitsubishi Chemical Corporation is expected to build a new BPA (raw material for PC) manufacturing plant (150kt/y) in Map Ta Phut, Thailand, and the commercial productionis likely to commence from 2010. Competitive factors for the PC market are price and quality. Service and on-time delivery does play an important part in choosing the right distributor.
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Demand Analysis
POM Market: Demand Analysis by End Users (Thailand), 2006 End-user Electrical and electronics Household products Automotive Others TOTAL
Note: Others include medical devices, toys, and other general purpose usage Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
2006 (%) 40 22 18 20 100
Demand for POM has tremendous growth potential in Thailand. The electrical and electronics sector was the largest end user of POM, accounting for over 40.0 percent of the total Thai consumption of POM. Household consumer products accounted for about 22.0 percent of the total consumption, while the automotive industry contributed about 18.0 percent of the total POM market. The automotive industry is expected to become a larger consumer of POM in future. Main application areas are windshield wiper system, loudspeaker covers, ventilation grills in the rear of vehicle, fuel tank caps, fuel pump casings, and safety belt mechanisms. Other smaller areas of consumption are medical devicestoy making, and general-purpose plastics that accounted for approximately 20.0 percent of the total demand.
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POM Market: Market Share Analysis (Thailand), 2006
Company Polyplastics TPAC (Thai-PolyAcetal) Dupont Others TOTAL
Note: Others include Asahi Kasei, MEP, and other smaller importers/traders Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Share (%) 60.0 10.0 10.0 20.0 100.0
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POM Market: Market Share Analysis (Thailand), 2006
Others 20.0%
Polyplastics 60.0%
Dupont 10.0%
TPAC (ThaiPolyAcetal) 10.0%
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There are about 5 POM multinationals supplying the market in Thailand. While many companies are still relying on imports, some have set up plants in Thailand to produce POM for local consumption. MEP (Thai-Polyacetal) is the only company in Thailand that has manufacturing capabilities. The top three POM multinationals in Thailand contributed over 80.0 percent of the total POM unit share in Thailand. In 2006, Polyplastics was the POM market leader, holding more than 60 percent of segment shares. The second and third positions were held by MEP (Thai- Polyacetal) and Dupont, each with 10.0 percent of unit share. Polyplastics has been holding a leadership position for POM for over seven years, as end users are favoring locally manufactured POM plastics. POMs obtained locally are more costeffective in terms of logistics and service. Many end users have begun to purchase from local manufacturers such as MEP and Polyplastics that are able to offer lower prices to the end users.
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Demand Analysis
PBT Market: Demand Analysis by End-user (Thailand), 2006 End-user Electrical and electronics Others TOTAL 2006 (%) 85.0 15.0 100.0
PBT is primarily used in the electrical and electronics industry, automotive, and telecommunications, and precision engineering applications. The important applications that use PBT are housings, functional parts for electric motors, housing, and brackets for all types of electrical and electronic components, windscreen wipers, and capacitor housings. Major applications, in general, and precision engineering include parts for computer printers, photocopiers, cameras and optical equipment, gas meter housings, components, and housings for valves and pumps. PBT engineering plastics are also preferred for parts in domestic appliances such as electric cookers and irons, and in medical packaging. Approximately 85.0 percent of the demand for PBT came from electrical and electronics industry in 2006. General applications accounted for the other 15.0 percent.
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PBT Market: Market Share Analysis (Thailand), 2006
Company GE Toray MEP Polyplastics CCP Others TOTAL
Note: Others include Toyobo, Dupont, and Bayer, and so on Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
Share (%) 30.0 15.0 15.0 12.0 12.0 16.0 100.0
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PBT Market: Market Share Analysis (Thailand), 2006
Others 16.0% CCP 12.0%
GE 30.0%
Polyplastics 12.0%
MEP 15.0%
Toray 15.0%
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Eight companies supply PBT to the engineering plastics market in Thailand. Most of the companies are large multinationals and incumbent market participants such as GE plastics, MEP, Polyplastics, Toray, CCP, Bayer, and Dupont. The market for PBT is relatively concentrated in Thailand. The top five PBT multinationals in Thailand contributed more that 84.0 percent of the total PBT units in Thailand. GE Plastics has production facilities in Thailand, with a capacity of 9,600 tons of PBT per year. In 2006, GE Plastics lead the market, holding approximately 30.0 percent of the total unit shares. The second and third market positions were held by MEP and Toray, each with 15.0 percent of unit shares, respectively.
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Demand Analysis
The other engineering plastics market in Thailand was comparatively large compared to the markets in Malaysia and Singapore. The other engineering plastics market consists of predominately PMMA, PPO, and PET. The PMMA engineering plastics made up the majority the other plastics segment in Thailand. In 2006, the demand of PMMA reached 13,000 tons in Thailand. The other engineering plastics are typically used in the niche electronic markets, and for other general purpose materials. There is an increasing use of PMMA in the automotive market. Demand for the other engineering plastics is expected to increase like the rest of the engineering plastics segments. Growth is spurred largely by the growing automotive industry in Thailand. Some of these plastics have provided strong competition to the PC and PA segments because they are generally less expensive compared to nylon or PC.
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Other Engineering Plastics Market: Market Share Analysis (Thailand), 2006
Company Mitsubishi Rayon GE Dupont Others TOTAL Share (%) 50.0 25.0 5.0 20.0 100.0
Note: Others include BASF (PET), Asahi (PPO), MEP (PPO)Thai ABS (ABS), Bayer (TPU), and so on Note: All figures are rounded; the base year is 2006. Source: Frost & Sullivan
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Other Engineering Plastics Market: Market Share Analysis (Thailand), 2006
Others 20.0%
Mitsubishi Rayon 50.0%
Dupont 5.0%
GE 25.0%
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The market for other engineering plastics is very concentrated. Companies have niche areas, where they compete in and are not in direct competition with each other. Mitsubishi Rayon recently entered the market for PMMA in Thailand, while GE Plastics, Asahi, and MEP supply PPO. Other miscellaneous plastics such as TPU, PC-ABS blends, PET, and PS are supplied in small quantities by companies such as Bayer, Thai-ABS, and BASF.
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Database of Key Industry Participants
Key Market Participants

GE Plasics http://www.geplastics.com/gep/en/Home/Home/home.html and http://www.geplastics.com.cn/schinese/ Dupont www.dupont.com.sg MEP http://www.m-ep.co.jp/mep-en/index.htm Polyplastics http://www.polyplastics.com/en/index.vm Asahi Kasei http://www.akchem.com/emt/eng/index.html Bayer http://www.bayer.co.th/webphp/eng/default.php Teijin http://www.teijinkasei.com/default.asp BASF http://www.corporate.basf.com Toray http://www.toray.co.jp/english/plastics/baseabroad/tts.html DSM http://www.dsm.com/en_US/html/dep/home_dep.htm Lanxess http://corporate.lanxess.com/en/corporate-home/company.html
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Key Market Participants (Contd...)

Ube http://www.ube-ind.co.jp/english/index.htm MRC http://www.mrc.co.jp/english/index.html Rhodia http://www.rhodia.com/us/home_tunel.asp Dow http://plastics.dow.com/about/eng_therm.htm DIC http://www.dic.co.jp/eng/index.html
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Engineering Plastics Market in Southeast Asia P127-39

2008 Frost & Sullivan, All rights reserved www.frost.com

2008 Frost & Sullivan, All rights reserved www.frost.com

2008 Frost & Sullivan, All rights reserved www.frost.com

Executive Summary (Contd...)

Executive Summary (Contd...)

Executive Summary (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Executive Summary (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Executive Summary (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Executive Summary (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Executive Summary (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Total Southeast Asia Engineering Plastics Market

Market Engineering Measurements

Market Overview and Introduction

Key Industry Challenges

Source: Frost & Sullivan

Key Industry Challenges (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Key Industry Challenges (Contd...)

Key Industry Challenges (Contd...)

Key Industry Challenges (Contd...)

Source: Frost & Sullivan

2008 Frost & Sullivan, All rights reserved www.frost.com

Market Drivers (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Market Drivers (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

2008 Frost & Sullivan, All rights reserved www.frost.com

Market Restraints (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Unit Shipment Forecasts

Unit Shipment Forecasts (Contd...)

450 400 350 300 250 200 150 100 50 0

Units ('000 tons)

2008 Frost & Sullivan, All rights reserved www.frost.com

Unit Shipment Forecasts (Contd...)

Market Forecasts and Trends

Market Forecasts and Trends (Contd...)

Market Forecasts and Trends (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Market Forecasts and Trends (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Competitive Structure (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Singapore Engineering Plastics Market

Market Overview and Introduction

Market Engineering Measurements

2008 Frost & Sullivan, All rights reserved www.frost.com

Market Drivers (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Market Drivers (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com

Market Drivers (Contd)

Market Drivers (Contd)

2008 Frost & Sullivan, All rights reserved www.frost.com

2008 Frost & Sullivan, All rights reserved www.frost.com

Market Restraints (Contd...)

2008 Frost & Sullivan, All rights reserved www.frost.com