MARKET DEVELOPMENT
Tap Opportunities In Bio-Based Chemicals - MIDA Chief
Tap Opportunities In Bio-Based Chemicals - MIDA Chief
21/08/2014 (Bernama) - Bio-based chemicals such as oleochemicals derived from vegetable oils and fats, are one of the opportunities that could be explored as the sector shows promising future growth potential in the global market.
"The awareness on environment preservation should be seen as an avenue for new business opportunity, particularly in producing green chemical products," said Malaysian Investment Development Authority (MIDA) Chief Executive Officer Datuk Azman Mahmud.
He urged Malaysian oleochemical players to focus on delivering specialty oleochemical derivatives that are environmentally friendly, more innovative, tehcnology-driven as well as safe for the consumers.
Azman made the remarks in his opening speech at a seminar on "Oleochemical Industry in Malaysia: Downstream Expansion and Sustainability", in Kuala Lumpur, Wednesday.
He said the US and European companies had a comparative advantage in capatilising on this new business opportunity, thanks to their proprietary technologies in producing high-value specialty chemicals from basic oleochemicals.
"Malaysia has the raw materials but still lacks the technology innovation to increase its competitiveness in the space.
"A pratical business model enabling Malaysian companies to penetrate and tap this market is to encourage interested parties to establish joint ventures with foreign partners," Azman said.
According to Malaysian Palm Oil Board, Head of Synthesis and Product Development Unit, Dr Yeong Shoot Kian, a speaker at the seminar, global oleochemical market is led by surging demand for renewable-based products, favourable government initiatives and shifting consumer preferences for sustainable solutions.
He said the Asia-Pacific, led by Indonesia, China and Malaysia, accounted for 60 per cent of the total oleochemical production capacity.
"The awareness on environment preservation should be seen as an avenue for new business opportunity, particularly in producing green chemical products," said Malaysian Investment Development Authority (MIDA) Chief Executive Officer Datuk Azman Mahmud.
He urged Malaysian oleochemical players to focus on delivering specialty oleochemical derivatives that are environmentally friendly, more innovative, tehcnology-driven as well as safe for the consumers.
Azman made the remarks in his opening speech at a seminar on "Oleochemical Industry in Malaysia: Downstream Expansion and Sustainability", in Kuala Lumpur, Wednesday.
He said the US and European companies had a comparative advantage in capatilising on this new business opportunity, thanks to their proprietary technologies in producing high-value specialty chemicals from basic oleochemicals.
"Malaysia has the raw materials but still lacks the technology innovation to increase its competitiveness in the space.
"A pratical business model enabling Malaysian companies to penetrate and tap this market is to encourage interested parties to establish joint ventures with foreign partners," Azman said.
According to Malaysian Palm Oil Board, Head of Synthesis and Product Development Unit, Dr Yeong Shoot Kian, a speaker at the seminar, global oleochemical market is led by surging demand for renewable-based products, favourable government initiatives and shifting consumer preferences for sustainable solutions.
He said the Asia-Pacific, led by Indonesia, China and Malaysia, accounted for 60 per cent of the total oleochemical production capacity.