MALAYSIA
MALAYSIA
1899 Preston White Drive, Reston, Virginia 20191 (703) 264-7200 © PRIMIR/NPES 2008
INTRODUCTION In today’s global business, print faces constant change and multinational challenges. In order to react intelligently and be proactive printing industry business leaders urgently need worldwide data to reference when making internationally-based business decisions. PRIMIR recently released a series of three reports on the “World Wide Market for Print.” Pira International was commissioned to investigate the key global print markets. This study identified 51 country markets that make up 99% of the global commercial printing industry. The series of reports detail social and economic climate in each region, demographic profiles, advertising trends, internet usage/adoption, print markets and applications, print process share, and market sizing for presses, equipment, consumables and paper. Forecasts are provided through 2011. The report that follows is a summary of data and information from all three reports pertaining to this specific country. Note: Unless otherwise noted, the data is presented in U.S. Dollars, taking into account forecast rates for GDP growth and inflation, constant 2006 exchange rates have been applied. The final report includes a database where statistics are provided for both current and constant U.S. Dollars as well as in local currency (both current and constant).
MALAYSIA - OVERVIEW Malaysia is a federation of 13 states, formerly British colonies. Formed in 1963, it is a federal constitutional monarchy and one of the two elective monarchies in the world. The Malaysian government follows the British parliamentary system model. The head of the state is the king who is a nominal figurehead. Executive power is vested in the cabinet led by its prime minister. The cabinet is chosen from members of the parliament.
Malaysia’s parliament consists of the Upper House and the Lower House, with the Upper House having six-year terms and the Lower House with five-year terms. Legislative power is divided between federal and state legislatures. There are more than 30 registered political parties. The Barisan Nasional (National Front), a coalition of 14 parties, has ruled Malaysia since 1957.
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Malaysia’s currency is the Ringgit (MYR), also known unofficially as the Malaysian Dollar. The Ringgit stands at MYR 3.673 to the dollar (August 2006). GDP is projected at US$144 billion for 2006. With a population of 25.7 million, GDP per capita was projected at US$5,589 in 2006.
DEMOGRAPHIC TRENDS Malaysia’s population stood at 25.3 million in 2005, set to increase to 38.9 million by 2050. The median age of the population in 2005 was 25 years, forecast to rise to 39.3 years by 2050.
The literacy rate currently stands at 88.7%, with male literacy at 92.0%. The labor force totals 10.7 million, with 14.5% in agriculture, 36% in industry, and 49.5% in services.
Figure 1 Malaysia: Long-term Demographic Trends by Age Group, 2000-2050 0-14
15-64
65+
Total population 45,000
80 70
38,924
30,000
62.2
50 40
35,000
33,223 67.4
33.7
25,000
65.7
22,997
20,000
30
23.7
15,000 18.2
20
16.1
10,000
8.9 10
5,000
4.1
0
0 2000
2025
Source: United Nations
2
2050
Population ('000s)
% population
60
40,000
ECONOMIC TRENDS The middle income country of Malaysia has changed itself from a producer of raw materials to a multi-sector economy. High world energy prices are beneficial to Malaysia as it is an exporter of oil and gas, as well as a major producer of tin, rubber and palm oil.
Following a slump in 2000-2001, the economy has since been rejuvenated. The country’s banking sector is now more resistant to external shocks. The current account surplus was a substantial US$20.5 billion, or 15.7% of GDP, in 2005. The government also removed a ban on short selling in March 2006, to bring about a more flexible capital market.
GDP is projected at US$144 billion for 2006, with GDP growth standing at 5.5%, up from 5.3% in 2005 and forecast to reach 5.8% in 2007. Inflation, standing at 4.5% in 2005, is set to fall to less than 1% by next year.
Small external debts, healthy foreign exchange reserves, estimated at US$70.2 billion in 2005, and low inflation are Malaysia’s strengths. The economy continues to depend on the sustained growth of its primary export destinations of the USA, China and Japan.
In recent years, the government has tightened its monetary policies and is reducing subsidies. In July 2005, it made an important move to keep the Ringgit stable, by removing the fixed exchange rate and replacing it with a managed floating system. This was aimed at supporting the country’s export-based economy. With the unpegging of the Ringgit from the US dollar, the country’s currency has become more sensitive to international interest rate trends.
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Table 1 Malaysia: Key Economic Indicators, 2003-2007 Indicator Population ('000s) Exchange rate (=US$1) Purchasing power parity (=US$1) GDP (local currency, millions, current prices) GDP (local currency, millions, constant 2000 prices) GDP (current, US$ million) GDP, PPP (current, US$ million) GDP per capita (US$) GDP per capita, PPP (US$) GDP growth (%) GDP deflator (%) Consumer price index (2000=100) Imports (US$ million) Exports (US$ million)
2003 24,379 3.80 1.59 395,017 378,800 103,952 244,381 4,264 10,024 5.4 3.5 104.3 81,948 99,369
2004 24,859 3.80 1.65 449,609 405,694 118,318 268,719 4,760 10,810 7.1 6.2 105.9 105,298 125,744
2005 25,347 3.78 1.67 494,544 427,196 130,796 290,683 5,160 11,468 5.3 4.5 109.0 114,411 140,870
2006p 25,770 3.74 1.68 538,683 450,692 144,033 314,453 5,589 12,202 5.5 3.2 112.5 n/a n/a
2007f 26,199 3.72 1.65 574,446 476,832 154,508 340,950 5,897 13,014 5.8 0.8 113.5 n/a n/a
Note: p=projected; f=forecast Source: Pira International, Ltd calculations from the United Nations (population data), International Monetary Fund (economic data)
THE MEDIA ENVIRONMENT The government and the ruling coalition party have significant control over the national media, including print media. There are around 85 daily and weekly newspapers, magazines and other publications approved by the Audit Bureau of Circulation, out of a total of 181 news magazines and publications. The total circulation of newspapers and periodicals in the country was around 8.9 million, though the audited figure by the Bureau was less than 5.4 million.
The newspaper market is growing strongly, with growth of 5.4% year-on-year since 2000. Out of a total US$1.16 billion advertising market in 2004, newspaper advertising was valued at US$702.6 million, magazine advertising at US$43.5 million and Internet advertising at US$8.6 million.
Internet users numbered 10.04 million in 2005, with a 36.7% penetration. This compared with 16.1% penetration in 2000.
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Table 2 Malaysia: Advertising and Print Media Trends, 2000-2004 Advertising media Above-the-line advertising (media sales) Total advertising expenditure (US$ million) Print advertising expenditure (US$ million) Newspaper advertising expenditure (US$ million) Magazine advertising expenditure (US$ million) Outdoor advertising expenditure (US$ million) Print's share of advertising expenditure (%) Internet advertising expenditure (US$ million) Newspaper trends Number of paid-for dailies Number of free dailies Number of paid-for non-dailies Number of paid-for Sundays Circulation of paid-for dailies ('000s) Circulation of free dailies ('000s) Circulation of paid-for non-dailies ('000s) Circulation of paid-for Sundays ('000s)
2000
2001
2002
2003
2004
806.5 530.9 496.4
830.8 557.6 509.6
908.0 617.5 575.9
996.2 681.0 622.8
1,163.4 764.2 702.6
34.5
48.0
41.6
41.9
43.5
n/a n/a n/a
n/a n/a 7.6
n/a n/a 7.4
16.3 68.4 8.9
18.1 65.7 8.6
31 n/a 1 30 2,191 n/a 17 2,548
34 n/a 2 14 2,399 n/a 40 2,384
32 1 2 14 2,334 140 120 2,395
32 1 2 32 2,429 143 69 2,957
34 1 n/a 34 2,608 145 n/a 3,959
Source: World Advertising Trends, World Press Trends, World Magazine Trends Figure 2 Malaysia: Trends in Internet Usage, 2000-2005 39.6
40 35
33.1
% population
30
27.6
25
23.1 19.3
20 16.1 15 10 5 0 2000
2001
2002
2003
2004
Source: Pira International Ltd calculations from Internetworldstats.com (www.Internetworldstats.com); OECD (broadband penetration)
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2005
PRINT MARKET TRENDS Some 3,162 printers were registered with the Home Affairs ministry in Malaysia. Its print market was valued at Ringgit12.1 billion (US$3.19 billion) in 2005, projected to grow by 6.5% in absolute terms in 2006 and by 3.1% in real terms, excluding the impact of inflation. During the period 2001-2006, the market grew at an average annual rate of 11% in absolute terms and over 7% in real terms.
Table 3 Malaysia: Print Market Trends, 2001-2006
Ringgit million, current prices Ringgit million, constant 2005 prices US$ million, current prices
2001
2005
2006p
12,860.9
% change 20052006 6.5
CAGR (%) 20012006 11.9
7,327.4
12,078.3
8,732.2
12,078.3
12,456.5
3.1
7.4
$1,928.3
$3,194.4
$3,438.7
7.6
12.3
Note: p=projected Source: Pira International Ltd
Sheetfed offset litho represents the single largest segment of the Malaysian market across print processes, with printing output valued at Ringgit3.14 billion in 2005, projected to grow by 6% in absolute terms in 2006. Coldset web offset is the next largest component of offset litho printing with output at Ringgit1.93 billion ahead of heatset web offset at Ringgit1.79 billion. The fastest growing areas of the market are Electrophotography and inkjet at Ringgit604 billion and Ringgit242 billion respectively in 2005, with letterpress losing market share.
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Table 4 Malaysia: Print Market Trends by Print Process, 2001-2006 (Ringgit million, current prices) Process Offset litho Sheetfed Web Coldset Heatset Gravure Flexo Screen Letterpress Electrophotography Inkjet Other Total
2001
2005
2006p
4,424.6 2,030.2 2,394.4 1,293.5 1,100.9 750.0 956.6 278.0 576.3 140.5 84.6 117.0 7,327.4
6,860.5 3,140.4 3,720.1 1,932.5 1,787.6 1,328.8 1,570.0 362.5 869.5 603.7 241.7 241.7 12,078.3
7,273.0 3,324.6 3,948.4 2,048.9 1,899.5 1,390.9 1,648.6 386.8 908.9 698.7 296.2 257.9 12,860.9
% change 2005-2006 6.0 5.9 6.1 6.0 6.3 4.7 5.0 6.7 4.5 15.7 22.5 6.7 6.5
CAGR (%) 2001-2006 10.5 10.4 10.5 9.6 11.5 13.1 11.5 6.8 9.5 37.8 28.5 17.1 11.9
Note: p=projected Source: Pira International Ltd
Table 5 Malaysia: Print Market Trends by Print Process, 2001-2006 (US$ million, current prices) Process Offset litho Sheetfed Web Coldset Heatset Gravure Flexo Screen Letterpress Electrophotography Inkjet Other Total
2001
2005
2006p
$1,164.4 534.3 630.1 340.4 289.7 197.4 251.7 73.2 151.6 37.0 22.3 30.8 $1,928.3
$1,814.5 830.6 983.9 511.1 472.8 351.4 415.2 95.9 230.0 159.7 63.9 63.9 $3,194.4
$1,944.6 888.9 1,055.7 547.8 507.9 371.9 440.8 103.4 243.0 186.8 79.2 68.9 $3,438.7
% change 2005-2006 7.2 7.0 7.3 7.2 7.4 5.8 6.2 7.9 5.7 17.0 23.9 7.9 7.6
CAGR (%) 2001-2006 10.8 10.7 10.9 10.0 11.9 13.5 11.9 7.2 9.9 38.3 28.9 17.5 12.3
Note: p=projected Source: Pira International Ltd
Across end-use areas, packaging represents the single largest product sector with sales of Ringgit2.23 billion in 2005, projected to grow by over eight percent in 2006. Key fast-growth areas during 2006 include advertising sectors such as coupons and inserts, as well as books and labels, with all sectors growing in real terms.
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Table 6 Malaysia: Print Market Trends by Product Sector, 2001-2006 (Ringgit million, current prices) Product
2001
2005
2006p
Books Catalogs Directories Magazines Newspapers Direct mail Brochures & pamphlets, other promotional print* Inserts Coupons, tickets & tape printing Posters & banners** Business forms Financial & legal printing*** Packaging - Corrugated & solid fiber - Cartons - Flexibles Labels Others Total
605.1 395.6 216.9 876.5 1,275.0 4.8 299.7
1,036.9 603.8 338.0 1,425.1 2,053.4 16.9 507.3
1,121.1 643.3 352.1 1,510.6 2,169.4 19.8 536.8
% change 2005-2006 8.1 6.6 4.2 6.0 5.6 17.2 5.8
CAGR (%) 2001-2006 13.1 10.2 10.2 11.5 11.2 32.6 12.4
62.8 7.3 108.8 273.5 287.0 1,355.7 808.6 313.0 234.1 395.6 1,162.9 7,327.4
118.4 16.9 186.0 471.7 521.1 2,234.4 1,294.6 538.5 401.3 603.8 1,944.7 12,078.3
127.9 18.9 197.3 491.5 563.8 2,418.0 1,334.7 562.9 520.4 658.0 2,032.4 12,860.9
8.1 11.9 6.1 4.2 8.2 8.2 3.1 4.5 29.7 9.0 4.5 6.5
15.3 21.1 12.6 12.4 14.5 12.3 10.5 12.5 17.3 10.7 11.8 11.9
Packaging - Consumer packaging - Industrial packaging
1,355.7 567.3 788.4
2,234.4 962.4 1,272.0
2,418.0 1,080.0 1,338.0
8.2 12.2 5.2
12.3 13.7 11.2
Note: p=projected; *excl. financial publications, etc; *plus other point-of-sale advertising materials; ***inc. financial reports, etc Source: Pira International Ltd
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Table 7 Malaysia: Print Market Trends by Product Sector, 2001-2006 (US$ million, current prices) Product Books Catalogs Directories Magazines Newspapers Direct mail Brochures & pamphlets, other promotional print* Inserts Coupons, tickets & tape printing Posters & banners** Business forms Financial & legal printing*** Packaging - Corrugated & solid fiber - Cartons - Flexibles Labels Others Total Packaging - Consumer packaging - Industrial packaging
2001
2005
2006p $299.7 172.0 94.1 403.9 580.1 5.3 143.5
% change 2005-2006 9.3 7.7 5.3 7.2 6.8 18.5 7.0
CAGR (%) 2001-2006 13.5 10.6 10.5 11.9 11.6 33.0 12.7
$159.2 104.1 57.1 230.7 335.5 1.3 78.9
$274.2 159.7 89.4 376.9 543.1 4.5 134.2
16.5 1.9 28.6 72.0 75.5 356.8 212.8 82.4 61.6 104.1 306.0 $1,928.3
31.3 4.5 49.2 124.7 137.8 591.0 342.4 142.4 106.1 159.7 514.3 $3,194.4
34.2 5.1 52.7 131.4 150.8 646.5 356.9 150.5 139.1 175.9 543.4 $3,438.7
9.2 13.1 7.2 5.4 9.4 9.4 4.2 5.7 31.1 10.2 5.7 7.6
15.6 21.5 13.0 12.8 14.8 12.6 10.9 12.8 17.7 11.1 12.2 12.3
$356.8 149.3 207.5
$591.0 254.5 336.4
$646.5 288.8 357.7
9.4 13.5 6.3
12.6 14.1 11.5
Note: p=projected; *excl. financial publications, etc; *plus other point-of-sale advertising materials; ***inc. financial reports, etc Source: Pira International Ltd
MACHINERY, INK, CONSUMABLES AND SUBSTRATES Given the speed of product development and the rapid pace of technology transfer, most of the key developments for printing presses and processes over the next five years will be seen in all of the main regions of the world, despite the fact that the rate of adoption varies between developed and developing regions.
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Table 8 Malaysia: Printing Machinery (US$ million, current prices) Sector Sheetfed offset Coldset web offset Heatset web offset Gravure Flexo Screen Letterpress Electrophotography Inkjet Spares Prepress - Film imagesetters - Platesetters Postpress Total
35.2 11.8 10.0 6.4 9.8 4.3 10.1 8.2 3.9 37.1 8.8
% change 2005-06 -2.8 -1.9 -2.9 -7.8 7.5 -7.9 -9.8 10.4 22.6 7.9 3.6
1.9 6.9 8.4 154.1
-8.8 7.8 3.4 1.3
2006
31.7 12.9 9.2 5.4 10.6 4.3 7.0 21.8 5.2 35.9 9.5
% change 2006-11 -10.0 9.0 -8.2 -16.5 7.6 -0.6 -30.4 167.2 33.0 -3.2 7.8
1.5 8.0 8.1 161.5
-20.9 15.9 -4.0 4.8
2011
Source: Pira International Ltd
Table 9 Malaysia: Printing Machinery (Ringgit million, current prices) Sector Sheetfed offset Coldset web offset Heatset web offset Gravure Flexo Screen Letterpress Electrophotography Inkjet Spares Prepress - Film imagesetters - Platesetters Postpress Total
129.1 43.4 36.7 23.6 36.0 15.8 37.1 29.9 14.4 136.0 32.4
% change 2005-06 -5.7 5.5 1.7 -8.7 14.1 -12.0 -11.3 11.5 9.0 15.5 8.1
7.1 25.3 30.9 565.4
-4.9 12.4 7.2 5.3
2006
116.3 47.3 33.7 19.7 38.7 15.7 25.8 79.9 19.2 131.7 35.0
% change 2006-11 -10.0 66.3 58.8 37.7 26.0 60.3 -0.3 76.3 126.1 53.9 66.0
5.6 29.3 29.6 592.7
-3.6 85.6 54.9 57.0
2011
Source: Pira International Ltd
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Table 10 Malaysia: Printing Consumables (US$ million, current prices) Sector Graphic arts film All aluminum plates - Metal CtP - Conventional Polyester/paper Flexo plates Total
6.7
% change 2005-06 -1.5
22.8 12.9 9.9 1.1 2.6 33.2
29.4 32.5 25.5 13.2 3.3 19.0
2006
5.0
% change 2006-11 -25.4
31.2 22.1 9.0 1.6 3.6 41.3
36.8 72.0 -9.0 39.2 39.5 24.5
2011
Source: Pira International Ltd
Table 11 Malaysia: Printing Consumables (Ringgit million, current prices) Sector Graphic arts film All aluminum plates - Metal CtP - Conventional Polyester/paper Flexo plates Total
24.5
% change 2005-06 -4.4
83.7 47.3 36.4 4.2 9.4 121.8
25.6 28.6 21.8 9.9 0.3 15.5
2006
18.3
% change 2006-11 -25.4
114.4 81.3 33.1 5.8 13.2 151.7
36.8 72.0 -9.0 39.2 39.5 24.5
2011
Source: Pira International Ltd
Table 12 Malaysia: Printing Inks (US$ million, current prices) Sector Sheetfed offset Coldset web offset Heatset web offset Gravure Flexo Screen Letterpress Electrophotography Inkjet Other Total
2006 26.2 16.2 14.8 10.9 13.0 3.0 7.2 7.1 3.1 2.7 104.3
% change 2005-06 10.0 10.1 10.4 8.7 9.1 10.8 8.6 20.2 29.2 8.9 10.8
2011 37.3 22.3 22.3 17.5 19.5 3.7 8.1 30.9 12.8 4.0 178.5
Source: Pira International Ltd
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% change 2006-11 42.5 37.8 50.2 61.4 50.0 21.1 12.0 332.8 315.3 49.5 71.2
Table 13 Malaysia: Printing Inks (Ringgit million, current prices) Sector Sheetfed offset Coldset web offset Heatset web offset Gravure Flexo Screen Letterpress Electrophotography Inkjet Other Total
2006 96.2 59.3 54.5 39.9 47.8 11.2 26.6 26.2 11.3 9.8 382.8
% change 2005-06 6.7 6.9 7.1 5.5 5.9 7.6 5.4 16.7 25.4 5.7 7.6
2011 137.0 81.8 81.8 64.4 71.7 13.5 29.8 113.5 47.1 14.7 655.2
% change 2006-11 42.5 37.8 50.2 61.4 50.0 21.1 12.0 332.8 315.3 49.5 71.2
Source: Pira International Ltd
Table 14 Malaysia: Printing Substrates (US$ million, current prices) Sector Uncoated mechanical Coated mechanical Uncoated woodfree Coated woodfree Newsprint Packaging paper & board Other paper Films Foils Other Packaging substrates Total
14.7 33.5 79.0 118.6 91.9
% change 2005-06 3.5 3.5 2.2 2.9 6.9
410.5 17.6 90.1 71.5 105.1 1,032.6
2006
22.6 55.3 121.5 181.3 124.1
% change 2006-11 53.5 64.8 53.7 52.8 35.0
6.1 1.9 5.2 4.9
679.4 26.5 145.0 115.1
65.5 51.0 61.0 61.0
15.3 6.0
158.8 1,629.5
51.0 57.8
Source: Pira International Ltd
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2011
Table 15 Malaysia: Printing Substrates (Ringgit million, current prices) Sector Uncoated mechanical Coated mechanical Uncoated woodfree Coated woodfree Newsprint Packaging paper & board Other paper Films Foils Other Packaging substrates Total
54.0 123.1 290.0 435.4 337.2
% change 2005-06 0.5 0.5 -0.8 -0.2 3.8
1,506.4 64.4 330.6 262.5 385.9 3,789.5
2006
82.9 202.9 445.7 665.3 455.4
% change 2006-11 53.5 64.8 53.7 52.8 35.0
2.9 -1.1 2.1 1.8
2,493.3 97.3 532.1 422.5
65.5 51.0 61.0 61.0
11.9 2.8
582.9 5,980.3
51.0 57.8
2011
Source: Pira International Ltd
For more comprehensive information about the global printing industry, please refer to the three PRIMIR reports “World Wide Market for Print” (Phase I, Phase II and Final). Visit http://www.primir.org/past_primir_studies.html for descriptions, tables of contents, and ordering information.
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1899 Preston White Drive, Reston, Virginia 20191 (703) 264-7200 © PRIMIR/NPES 2008
INTRODUCTION In today’s global business, print faces constant change and multinational challenges. In order to react intelligently and be proactive printing industry business leaders urgently need worldwide data to reference when making internationally-based business decisions. PRIMIR recently released a series of three reports on the “World Wide Market for Print.” Pira International was commissioned to investigate the key global print markets. This study identified 51 country markets that make up 99% of the global commercial printing industry. The series of reports detail social and economic climate in each region, demographic profiles, advertising trends, internet usage/adoption, print markets and applications, print process share, and market sizing for presses, equipment, consumables and paper. Forecasts are provided through 2011. The report that follows is a summary of data and information from all three reports pertaining to this specific country. Note: Unless otherwise noted, the data is presented in U.S. Dollars, taking into account forecast rates for GDP growth and inflation, constant 2006 exchange rates have been applied. The final report includes a database where statistics are provided for both current and constant U.S. Dollars as well as in local currency (both current and constant).
MALAYSIA - OVERVIEW Malaysia is a federation of 13 states, formerly British colonies. Formed in 1963, it is a federal constitutional monarchy and one of the two elective monarchies in the world. The Malaysian government follows the British parliamentary system model. The head of the state is the king who is a nominal figurehead. Executive power is vested in the cabinet led by its prime minister. The cabinet is chosen from members of the parliament.
Malaysia’s parliament consists of the Upper House and the Lower House, with the Upper House having six-year terms and the Lower House with five-year terms. Legislative power is divided between federal and state legislatures. There are more than 30 registered political parties. The Barisan Nasional (National Front), a coalition of 14 parties, has ruled Malaysia since 1957.
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Malaysia’s currency is the Ringgit (MYR), also known unofficially as the Malaysian Dollar. The Ringgit stands at MYR 3.673 to the dollar (August 2006). GDP is projected at US$144 billion for 2006. With a population of 25.7 million, GDP per capita was projected at US$5,589 in 2006.
DEMOGRAPHIC TRENDS Malaysia’s population stood at 25.3 million in 2005, set to increase to 38.9 million by 2050. The median age of the population in 2005 was 25 years, forecast to rise to 39.3 years by 2050.
The literacy rate currently stands at 88.7%, with male literacy at 92.0%. The labor force totals 10.7 million, with 14.5% in agriculture, 36% in industry, and 49.5% in services.
Figure 1 Malaysia: Long-term Demographic Trends by Age Group, 2000-2050 0-14
15-64
65+
Total population 45,000
80 70
38,924
30,000
62.2
50 40
35,000
33,223 67.4
33.7
25,000
65.7
22,997
20,000
30
23.7
15,000 18.2
20
16.1
10,000
8.9 10
5,000
4.1
0
0 2000
2025
Source: United Nations
2
2050
Population ('000s)
% population
60
40,000
ECONOMIC TRENDS The middle income country of Malaysia has changed itself from a producer of raw materials to a multi-sector economy. High world energy prices are beneficial to Malaysia as it is an exporter of oil and gas, as well as a major producer of tin, rubber and palm oil.
Following a slump in 2000-2001, the economy has since been rejuvenated. The country’s banking sector is now more resistant to external shocks. The current account surplus was a substantial US$20.5 billion, or 15.7% of GDP, in 2005. The government also removed a ban on short selling in March 2006, to bring about a more flexible capital market.
GDP is projected at US$144 billion for 2006, with GDP growth standing at 5.5%, up from 5.3% in 2005 and forecast to reach 5.8% in 2007. Inflation, standing at 4.5% in 2005, is set to fall to less than 1% by next year.
Small external debts, healthy foreign exchange reserves, estimated at US$70.2 billion in 2005, and low inflation are Malaysia’s strengths. The economy continues to depend on the sustained growth of its primary export destinations of the USA, China and Japan.
In recent years, the government has tightened its monetary policies and is reducing subsidies. In July 2005, it made an important move to keep the Ringgit stable, by removing the fixed exchange rate and replacing it with a managed floating system. This was aimed at supporting the country’s export-based economy. With the unpegging of the Ringgit from the US dollar, the country’s currency has become more sensitive to international interest rate trends.
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Table 1 Malaysia: Key Economic Indicators, 2003-2007 Indicator Population ('000s) Exchange rate (=US$1) Purchasing power parity (=US$1) GDP (local currency, millions, current prices) GDP (local currency, millions, constant 2000 prices) GDP (current, US$ million) GDP, PPP (current, US$ million) GDP per capita (US$) GDP per capita, PPP (US$) GDP growth (%) GDP deflator (%) Consumer price index (2000=100) Imports (US$ million) Exports (US$ million)
2003 24,379 3.80 1.59 395,017 378,800 103,952 244,381 4,264 10,024 5.4 3.5 104.3 81,948 99,369
2004 24,859 3.80 1.65 449,609 405,694 118,318 268,719 4,760 10,810 7.1 6.2 105.9 105,298 125,744
2005 25,347 3.78 1.67 494,544 427,196 130,796 290,683 5,160 11,468 5.3 4.5 109.0 114,411 140,870
2006p 25,770 3.74 1.68 538,683 450,692 144,033 314,453 5,589 12,202 5.5 3.2 112.5 n/a n/a
2007f 26,199 3.72 1.65 574,446 476,832 154,508 340,950 5,897 13,014 5.8 0.8 113.5 n/a n/a
Note: p=projected; f=forecast Source: Pira International, Ltd calculations from the United Nations (population data), International Monetary Fund (economic data)
THE MEDIA ENVIRONMENT The government and the ruling coalition party have significant control over the national media, including print media. There are around 85 daily and weekly newspapers, magazines and other publications approved by the Audit Bureau of Circulation, out of a total of 181 news magazines and publications. The total circulation of newspapers and periodicals in the country was around 8.9 million, though the audited figure by the Bureau was less than 5.4 million.
The newspaper market is growing strongly, with growth of 5.4% year-on-year since 2000. Out of a total US$1.16 billion advertising market in 2004, newspaper advertising was valued at US$702.6 million, magazine advertising at US$43.5 million and Internet advertising at US$8.6 million.
Internet users numbered 10.04 million in 2005, with a 36.7% penetration. This compared with 16.1% penetration in 2000.
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Table 2 Malaysia: Advertising and Print Media Trends, 2000-2004 Advertising media Above-the-line advertising (media sales) Total advertising expenditure (US$ million) Print advertising expenditure (US$ million) Newspaper advertising expenditure (US$ million) Magazine advertising expenditure (US$ million) Outdoor advertising expenditure (US$ million) Print's share of advertising expenditure (%) Internet advertising expenditure (US$ million) Newspaper trends Number of paid-for dailies Number of free dailies Number of paid-for non-dailies Number of paid-for Sundays Circulation of paid-for dailies ('000s) Circulation of free dailies ('000s) Circulation of paid-for non-dailies ('000s) Circulation of paid-for Sundays ('000s)
2000
2001
2002
2003
2004
806.5 530.9 496.4
830.8 557.6 509.6
908.0 617.5 575.9
996.2 681.0 622.8
1,163.4 764.2 702.6
34.5
48.0
41.6
41.9
43.5
n/a n/a n/a
n/a n/a 7.6
n/a n/a 7.4
16.3 68.4 8.9
18.1 65.7 8.6
31 n/a 1 30 2,191 n/a 17 2,548
34 n/a 2 14 2,399 n/a 40 2,384
32 1 2 14 2,334 140 120 2,395
32 1 2 32 2,429 143 69 2,957
34 1 n/a 34 2,608 145 n/a 3,959
Source: World Advertising Trends, World Press Trends, World Magazine Trends Figure 2 Malaysia: Trends in Internet Usage, 2000-2005 39.6
40 35
33.1
% population
30
27.6
25
23.1 19.3
20 16.1 15 10 5 0 2000
2001
2002
2003
2004
Source: Pira International Ltd calculations from Internetworldstats.com (www.Internetworldstats.com); OECD (broadband penetration)
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2005
PRINT MARKET TRENDS Some 3,162 printers were registered with the Home Affairs ministry in Malaysia. Its print market was valued at Ringgit12.1 billion (US$3.19 billion) in 2005, projected to grow by 6.5% in absolute terms in 2006 and by 3.1% in real terms, excluding the impact of inflation. During the period 2001-2006, the market grew at an average annual rate of 11% in absolute terms and over 7% in real terms.
Table 3 Malaysia: Print Market Trends, 2001-2006
Ringgit million, current prices Ringgit million, constant 2005 prices US$ million, current prices
2001
2005
2006p
12,860.9
% change 20052006 6.5
CAGR (%) 20012006 11.9
7,327.4
12,078.3
8,732.2
12,078.3
12,456.5
3.1
7.4
$1,928.3
$3,194.4
$3,438.7
7.6
12.3
Note: p=projected Source: Pira International Ltd
Sheetfed offset litho represents the single largest segment of the Malaysian market across print processes, with printing output valued at Ringgit3.14 billion in 2005, projected to grow by 6% in absolute terms in 2006. Coldset web offset is the next largest component of offset litho printing with output at Ringgit1.93 billion ahead of heatset web offset at Ringgit1.79 billion. The fastest growing areas of the market are Electrophotography and inkjet at Ringgit604 billion and Ringgit242 billion respectively in 2005, with letterpress losing market share.
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Table 4 Malaysia: Print Market Trends by Print Process, 2001-2006 (Ringgit million, current prices) Process Offset litho Sheetfed Web Coldset Heatset Gravure Flexo Screen Letterpress Electrophotography Inkjet Other Total
2001
2005
2006p
4,424.6 2,030.2 2,394.4 1,293.5 1,100.9 750.0 956.6 278.0 576.3 140.5 84.6 117.0 7,327.4
6,860.5 3,140.4 3,720.1 1,932.5 1,787.6 1,328.8 1,570.0 362.5 869.5 603.7 241.7 241.7 12,078.3
7,273.0 3,324.6 3,948.4 2,048.9 1,899.5 1,390.9 1,648.6 386.8 908.9 698.7 296.2 257.9 12,860.9
% change 2005-2006 6.0 5.9 6.1 6.0 6.3 4.7 5.0 6.7 4.5 15.7 22.5 6.7 6.5
CAGR (%) 2001-2006 10.5 10.4 10.5 9.6 11.5 13.1 11.5 6.8 9.5 37.8 28.5 17.1 11.9
Note: p=projected Source: Pira International Ltd
Table 5 Malaysia: Print Market Trends by Print Process, 2001-2006 (US$ million, current prices) Process Offset litho Sheetfed Web Coldset Heatset Gravure Flexo Screen Letterpress Electrophotography Inkjet Other Total
2001
2005
2006p
$1,164.4 534.3 630.1 340.4 289.7 197.4 251.7 73.2 151.6 37.0 22.3 30.8 $1,928.3
$1,814.5 830.6 983.9 511.1 472.8 351.4 415.2 95.9 230.0 159.7 63.9 63.9 $3,194.4
$1,944.6 888.9 1,055.7 547.8 507.9 371.9 440.8 103.4 243.0 186.8 79.2 68.9 $3,438.7
% change 2005-2006 7.2 7.0 7.3 7.2 7.4 5.8 6.2 7.9 5.7 17.0 23.9 7.9 7.6
CAGR (%) 2001-2006 10.8 10.7 10.9 10.0 11.9 13.5 11.9 7.2 9.9 38.3 28.9 17.5 12.3
Note: p=projected Source: Pira International Ltd
Across end-use areas, packaging represents the single largest product sector with sales of Ringgit2.23 billion in 2005, projected to grow by over eight percent in 2006. Key fast-growth areas during 2006 include advertising sectors such as coupons and inserts, as well as books and labels, with all sectors growing in real terms.
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Table 6 Malaysia: Print Market Trends by Product Sector, 2001-2006 (Ringgit million, current prices) Product
2001
2005
2006p
Books Catalogs Directories Magazines Newspapers Direct mail Brochures & pamphlets, other promotional print* Inserts Coupons, tickets & tape printing Posters & banners** Business forms Financial & legal printing*** Packaging - Corrugated & solid fiber - Cartons - Flexibles Labels Others Total
605.1 395.6 216.9 876.5 1,275.0 4.8 299.7
1,036.9 603.8 338.0 1,425.1 2,053.4 16.9 507.3
1,121.1 643.3 352.1 1,510.6 2,169.4 19.8 536.8
% change 2005-2006 8.1 6.6 4.2 6.0 5.6 17.2 5.8
CAGR (%) 2001-2006 13.1 10.2 10.2 11.5 11.2 32.6 12.4
62.8 7.3 108.8 273.5 287.0 1,355.7 808.6 313.0 234.1 395.6 1,162.9 7,327.4
118.4 16.9 186.0 471.7 521.1 2,234.4 1,294.6 538.5 401.3 603.8 1,944.7 12,078.3
127.9 18.9 197.3 491.5 563.8 2,418.0 1,334.7 562.9 520.4 658.0 2,032.4 12,860.9
8.1 11.9 6.1 4.2 8.2 8.2 3.1 4.5 29.7 9.0 4.5 6.5
15.3 21.1 12.6 12.4 14.5 12.3 10.5 12.5 17.3 10.7 11.8 11.9
Packaging - Consumer packaging - Industrial packaging
1,355.7 567.3 788.4
2,234.4 962.4 1,272.0
2,418.0 1,080.0 1,338.0
8.2 12.2 5.2
12.3 13.7 11.2
Note: p=projected; *excl. financial publications, etc; *plus other point-of-sale advertising materials; ***inc. financial reports, etc Source: Pira International Ltd
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Table 7 Malaysia: Print Market Trends by Product Sector, 2001-2006 (US$ million, current prices) Product Books Catalogs Directories Magazines Newspapers Direct mail Brochures & pamphlets, other promotional print* Inserts Coupons, tickets & tape printing Posters & banners** Business forms Financial & legal printing*** Packaging - Corrugated & solid fiber - Cartons - Flexibles Labels Others Total Packaging - Consumer packaging - Industrial packaging
2001
2005
2006p $299.7 172.0 94.1 403.9 580.1 5.3 143.5
% change 2005-2006 9.3 7.7 5.3 7.2 6.8 18.5 7.0
CAGR (%) 2001-2006 13.5 10.6 10.5 11.9 11.6 33.0 12.7
$159.2 104.1 57.1 230.7 335.5 1.3 78.9
$274.2 159.7 89.4 376.9 543.1 4.5 134.2
16.5 1.9 28.6 72.0 75.5 356.8 212.8 82.4 61.6 104.1 306.0 $1,928.3
31.3 4.5 49.2 124.7 137.8 591.0 342.4 142.4 106.1 159.7 514.3 $3,194.4
34.2 5.1 52.7 131.4 150.8 646.5 356.9 150.5 139.1 175.9 543.4 $3,438.7
9.2 13.1 7.2 5.4 9.4 9.4 4.2 5.7 31.1 10.2 5.7 7.6
15.6 21.5 13.0 12.8 14.8 12.6 10.9 12.8 17.7 11.1 12.2 12.3
$356.8 149.3 207.5
$591.0 254.5 336.4
$646.5 288.8 357.7
9.4 13.5 6.3
12.6 14.1 11.5
Note: p=projected; *excl. financial publications, etc; *plus other point-of-sale advertising materials; ***inc. financial reports, etc Source: Pira International Ltd
MACHINERY, INK, CONSUMABLES AND SUBSTRATES Given the speed of product development and the rapid pace of technology transfer, most of the key developments for printing presses and processes over the next five years will be seen in all of the main regions of the world, despite the fact that the rate of adoption varies between developed and developing regions.
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Table 8 Malaysia: Printing Machinery (US$ million, current prices) Sector Sheetfed offset Coldset web offset Heatset web offset Gravure Flexo Screen Letterpress Electrophotography Inkjet Spares Prepress - Film imagesetters - Platesetters Postpress Total
35.2 11.8 10.0 6.4 9.8 4.3 10.1 8.2 3.9 37.1 8.8
% change 2005-06 -2.8 -1.9 -2.9 -7.8 7.5 -7.9 -9.8 10.4 22.6 7.9 3.6
1.9 6.9 8.4 154.1
-8.8 7.8 3.4 1.3
2006
31.7 12.9 9.2 5.4 10.6 4.3 7.0 21.8 5.2 35.9 9.5
% change 2006-11 -10.0 9.0 -8.2 -16.5 7.6 -0.6 -30.4 167.2 33.0 -3.2 7.8
1.5 8.0 8.1 161.5
-20.9 15.9 -4.0 4.8
2011
Source: Pira International Ltd
Table 9 Malaysia: Printing Machinery (Ringgit million, current prices) Sector Sheetfed offset Coldset web offset Heatset web offset Gravure Flexo Screen Letterpress Electrophotography Inkjet Spares Prepress - Film imagesetters - Platesetters Postpress Total
129.1 43.4 36.7 23.6 36.0 15.8 37.1 29.9 14.4 136.0 32.4
% change 2005-06 -5.7 5.5 1.7 -8.7 14.1 -12.0 -11.3 11.5 9.0 15.5 8.1
7.1 25.3 30.9 565.4
-4.9 12.4 7.2 5.3
2006
116.3 47.3 33.7 19.7 38.7 15.7 25.8 79.9 19.2 131.7 35.0
% change 2006-11 -10.0 66.3 58.8 37.7 26.0 60.3 -0.3 76.3 126.1 53.9 66.0
5.6 29.3 29.6 592.7
-3.6 85.6 54.9 57.0
2011
Source: Pira International Ltd
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Table 10 Malaysia: Printing Consumables (US$ million, current prices) Sector Graphic arts film All aluminum plates - Metal CtP - Conventional Polyester/paper Flexo plates Total
6.7
% change 2005-06 -1.5
22.8 12.9 9.9 1.1 2.6 33.2
29.4 32.5 25.5 13.2 3.3 19.0
2006
5.0
% change 2006-11 -25.4
31.2 22.1 9.0 1.6 3.6 41.3
36.8 72.0 -9.0 39.2 39.5 24.5
2011
Source: Pira International Ltd
Table 11 Malaysia: Printing Consumables (Ringgit million, current prices) Sector Graphic arts film All aluminum plates - Metal CtP - Conventional Polyester/paper Flexo plates Total
24.5
% change 2005-06 -4.4
83.7 47.3 36.4 4.2 9.4 121.8
25.6 28.6 21.8 9.9 0.3 15.5
2006
18.3
% change 2006-11 -25.4
114.4 81.3 33.1 5.8 13.2 151.7
36.8 72.0 -9.0 39.2 39.5 24.5
2011
Source: Pira International Ltd
Table 12 Malaysia: Printing Inks (US$ million, current prices) Sector Sheetfed offset Coldset web offset Heatset web offset Gravure Flexo Screen Letterpress Electrophotography Inkjet Other Total
2006 26.2 16.2 14.8 10.9 13.0 3.0 7.2 7.1 3.1 2.7 104.3
% change 2005-06 10.0 10.1 10.4 8.7 9.1 10.8 8.6 20.2 29.2 8.9 10.8
2011 37.3 22.3 22.3 17.5 19.5 3.7 8.1 30.9 12.8 4.0 178.5
Source: Pira International Ltd
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% change 2006-11 42.5 37.8 50.2 61.4 50.0 21.1 12.0 332.8 315.3 49.5 71.2
Table 13 Malaysia: Printing Inks (Ringgit million, current prices) Sector Sheetfed offset Coldset web offset Heatset web offset Gravure Flexo Screen Letterpress Electrophotography Inkjet Other Total
2006 96.2 59.3 54.5 39.9 47.8 11.2 26.6 26.2 11.3 9.8 382.8
% change 2005-06 6.7 6.9 7.1 5.5 5.9 7.6 5.4 16.7 25.4 5.7 7.6
2011 137.0 81.8 81.8 64.4 71.7 13.5 29.8 113.5 47.1 14.7 655.2
% change 2006-11 42.5 37.8 50.2 61.4 50.0 21.1 12.0 332.8 315.3 49.5 71.2
Source: Pira International Ltd
Table 14 Malaysia: Printing Substrates (US$ million, current prices) Sector Uncoated mechanical Coated mechanical Uncoated woodfree Coated woodfree Newsprint Packaging paper & board Other paper Films Foils Other Packaging substrates Total
14.7 33.5 79.0 118.6 91.9
% change 2005-06 3.5 3.5 2.2 2.9 6.9
410.5 17.6 90.1 71.5 105.1 1,032.6
2006
22.6 55.3 121.5 181.3 124.1
% change 2006-11 53.5 64.8 53.7 52.8 35.0
6.1 1.9 5.2 4.9
679.4 26.5 145.0 115.1
65.5 51.0 61.0 61.0
15.3 6.0
158.8 1,629.5
51.0 57.8
Source: Pira International Ltd
12
2011
Table 15 Malaysia: Printing Substrates (Ringgit million, current prices) Sector Uncoated mechanical Coated mechanical Uncoated woodfree Coated woodfree Newsprint Packaging paper & board Other paper Films Foils Other Packaging substrates Total
54.0 123.1 290.0 435.4 337.2
% change 2005-06 0.5 0.5 -0.8 -0.2 3.8
1,506.4 64.4 330.6 262.5 385.9 3,789.5
2006
82.9 202.9 445.7 665.3 455.4
% change 2006-11 53.5 64.8 53.7 52.8 35.0
2.9 -1.1 2.1 1.8
2,493.3 97.3 532.1 422.5
65.5 51.0 61.0 61.0
11.9 2.8
582.9 5,980.3
51.0 57.8
2011
Source: Pira International Ltd
For more comprehensive information about the global printing industry, please refer to the three PRIMIR reports “World Wide Market for Print” (Phase I, Phase II and Final). Visit http://www.primir.org/past_primir_studies.html for descriptions, tables of contents, and ordering information.
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