Malaysia Cement Industry Report - 2015

Malaysia Cement Industry Report - 2015

This report profiles Malaysia’s cement industry, discussing market trends through 2014 and outlook for 2015 and beyond. The report also highlights leading players in the sector including Lafarge Malayan Cement Berhad (Lafarge Malaysia), Tasek Corporation Berhad (Tasek) and Cahya Mata Sarawak Berhad (CMS).

The cement industry is one of the strategic industries of Malaysia, acting as the feeder to several other industries like real-estate, construction and infrastructure. The Malaysian cement industry has witnessed strong growth in demand during the last few years, thanks to government spending on infrastructure projects.

Going forward, cement demand is expected to continue its uptrend trajectory, driven mainly by the continued progress of government-led investments and key infrastructure projects coupled with the on-going residential and commercial developments. The 11th Malaysia Plan and Economic Transformation Programme (ETP) will be the key drivers for the industry growth.

However, the major challenges faced by the industry are the rising raw material and transportation costs. The industry will also have to meet global pollution and emission standards which will take considerable amount of investment.

Key Points:

Growth in cement demand is driving companies towards capacity expansion. West Malaysia leads in terms of integrated production capacity, accounting for around 91% of the total existing capacity, while East Malaysia accounts for 9%.

During 2009-10, domestic annual consumption of cement experienced a slowdown. However, the industry saw a significant demand recovery during the last four years, growing at a CAGR of over 5%.

The cement production index grew at a CAGR of 4.4% during 2009-13. The index grew by 6.6% y/y in 2014, exceeding its historical average. In 1HFY15, the index grew by 16% y/y.

1. Industry Profile
1.1 Sector overview
1.2 Sector size
1.3 Competitive landscape
1.4 Environmental scanning

2. Market Trends and Outlook
2.1 Key economic indicators-Malaysia
2.2 Installed capacity
2.3 Cement production
2.4 Cement consumption
2.5 Cement trade
2.6 Cement prices
2.7 Construction trends
2.8 Infrastructure spending
2.9 Market outlook

3. Leading Players and Comparative Matrix
3.1 Leading Players
3.1.1 Lafarge Malayan Cement Berhad (Lafarge Malaysia)
3.1.2 Tasek Corporation Berhad (Tasek)
3.1.3 Cahya Mata Sarawak Berhad (CMS)
3.2 Comparative matrix
3.3 SWOT analysis

4. Tables and Charts
Table 1: Key infrastructural thrust areas of 10th Malaysia Plan
Table 2: Major cement producers in Malaysia
Table 3: Integrated cement plants in Malaysia
Table 4: Key financial ratios of leading players as of fiscal-year end
Table 5: Comparison of half-year results of leading players

Chart 1: Per capita cement consumption trend in Malaysia
Chart 2: Breakup of world cement production by countries
Chart 3: Value of cement production output in Malaysia
Chart 4: Breakup of Malaysian GDP by sector
Chart 5: Major political parties in Malaysia by percentage of seats in parliament
Chart 6: Per capita cement consumption trend in Malaysia
Chart 7: Quarterly GDP growth rate-Malaysia
Chart 8: Monthly average exchange rate
Chart 9: Y/Y change in inflation indices-Malaysia
Chart 10: Benchmark interest rate-Malaysia
Chart 11: Share of players in terms of installed capacity
Chart 12: Capacity expansion by major players
Chart 13: Total annual cement production
Chart 14: Y/Y change in industrial production index-Cement
Chart 15: Total annual cement consumption in Malaysia
Chart 16: Annual cement demand as a ratio of domestic production
Chart 17: Cement exports from Malaysia
Chart 18: Cement imports in Malaysia
Chart 19: Price of a 50 kg bag-Ordinary Portland Cement
Chart 20: Annual inflation in cement prices
Chart 21: Y/Y growth-Construction sector
Chart 22: Y/Y growth-Residential units under construction
Chart 23: New government projects awarded-Annual
Chart 24: New private sector projects awarded-Annual
Chart 25: Forecast for cement consumption in Malaysia
Chart 26: Breakup of revenues by segments-Lafarge Malaysia
Chart 27: Net sales of Lafarge Malaysia
Chart 28: Profit margins of Lafarge Malaysia
Chart 29: Breakup of revenues by segments-Tasek
Chart 30: Annual revenues of Tasek
Chart 31: Profit margins of Tasek
Chart 32: Breakup of revenues by segments-CMS
Chart 33: Annual revenues of CMS

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