The government’s ban on the export of rubberwood effective this month would help to lift a cap on local furniture makers’ earnings growth. This is simply because with more supply of rubberwood moving forward, manufacturers would be able to meet their orders faster.
Malaysia’s rubberwood exports were estimated to be worth up to RM300 million a year compared with the furniture exports of RM9.5 billion annually, hence the ban is important to ensure priority be given to the local furniture industry.
…expects additional revenue of RM100 million to RM120 million in 2018, due to rising demand for stretch film, which contributes 45% to the total revenue.
“We plan to add 12 lines over the next 20 years for the stretch film division on a 16-acre (6.47ha) land in the Sungai Petani Industrial Area. We have one 33-layer nano line now with another one scheduled in July, and we want to add two lines every two to three years. One line can generate RM100 million turnover…to increase its five-layer blown film lines by another three at its existing plant, and to add 16 more in the next 10 years, adding that each line can generate RM36 million in turnover or about 400 tonnes in output.”
“The PVC wrap lines will see altogether 20 lines by 2026, making us the largest PVC wrap manufacturer in Southeast Asia. By the end of this year, we will have eight lines. Our PVC wraps are popular in Indonesia and the Philippines.”
“We have a lot of areas we have not explored. We hope to be present in another 30 countries in five years. For instance, we want to break into the sub-Saharan region in Africa as we are only present in South Africa, Kenya and Nigeria. In the Americas, it is largely untapped. We have customers in the US, Canada and Mexico only.”
Apart from its stretch film division (45%), the group’s main revenue contributors are the garbage bags segment (25%), industrial films or bags (14%) and PVC food wrap (7%). The balance revenue comes from its compounding (calcium carbonate) and F&B units.
“We have directed Malaysia Airports Holdings Bhd (MAHB) to give priority to local companies who need the space… but we want the locals to grab opportunities faster. Jack Ma alone took up so much space,” referring to the Digital Free Trade Zone (DFTZ), which will see Malaysian Digital Economy Corp and Alibaba Corp collaborating to develop some 110 acres in the old Low Cost Carrier Terminal (LCCT) here.
…stronger export growth for the month resulted in a trade surplus of RM5.49 billion, the 235th consecutive month of trade surplus recorded since November 1997.