Report of Malaysia Paper Industry

1. Report of Malaysia Paper Industry By The Malaysian Pulp and Paper Manufacturer Association (MPPMA) Year 2012

2. Malaysia Participants • Mr Tan Chaik Phoay – Muda Paper Mills, Tasek • Mr Wong Peng Khoon – Muda Paper Mills, Kajang • Ms Lee Hooi Fung – Nibong Tebal Paper Mill • Mr Mohamad Razi Bin Idris – Pascorp Paper Industries • Mr Chua Keat Lee – Malaysian Newsprint Industries

3. Malaysia Facts • Consists of : West & East Malaysia with 13 states and 3 federal territory • Area : 329,847 Square Kilometer • Length :  West Malaysia 748 km (465 mi) SSE-NNW & 322 km (200 mi) ENE-WSW : East Malaysia ( Sabah )12 km (256 mi) E-W & 328 km (204 mi) N – S: East Malaysia ( Sarawak ) 679 km (422 mi) NNE-SSW & 254 km (158 mi) ESE-WNW • Population ( 2012 ) : 29.2 Mil • Ethnic Groups : Malay , Chinese, Indian, Others • Capital City : Kuala Lumpur • GDP 2012: USD 472.9 bil; USD 16,186 per capita • Language: Bahasa Malaysia (official), English (widely used in business), Mandarin, Tamil and Iban • Local currency:Ringgit (MYR) Source :- Encyclopedia of Nation

4. Malaysia Major Trade Partner’s * Source :- Malaysia Statistic Dept

5. Malaysia Major Export Country 2011 * * Malaysia-Japan export trade value is at 79.87 billion for year 2011 Source :- Malaysia Statistic Dept

6. Malaysia Major Import Country 2011 * Malaysia-Japan import trade value is at 65.46 billion for year 2011 Source :- Malaysia Statistic Dept

7. Malaysia Major Export Country 2012 * * Malaysia-Japan export trade value is at 63.59 billion for year 2012 up to Sept Source :- Malaysia Statistic Dept

8. Malaysia Major Import Country 2012 * Malaysia-Japan export trade value is at 48.46 billion for year 2012 up to Sept Source :- Malaysia Statistic Dept

9. Malaysia Paper Manufacturing Industry Comprises 3 sub-sectors : • Paper Manufacturing • Paper Products • Printing and Publishing

10. Paper Mills In Malaysia

11. Major producers in Malaysia

12. Paper capacity in Malaysia Major capacity increased in Containerboard paper (+300,000 tons) Source :- MPPMA

13. Paper – Supply & Demand (‘Mil Tons) Source :- MPPMA

14. Economic sectors supported by Paper Mills

15. Wastepaper – Domestic Supply & Demand (‘000 Tons) Source :- MPPMA

16. Wastepaper Consumption By Types (‘000 Tons) Source :- MPPMA

17. Challenges faced by the industry • Shortage of domestic wastepaper supply continues due to new capacities • Quality of waste paper is getting deteriorated – High moisture and high out-throw

18. High imports of wastepaper (‘000 Tons) 30% imports 20% imports 14% imports Source :- MPPMA

19. Paper Recycling System Malaysia By The Malaysian Pulp and Paper Manufacturer Association (MPPMA) Year 2012

20. Paper Recycling System in Malaysia Major Recovered Paper Sources Household / Residential Newspaper Publishers Town Councils School’s Network Charity’s Association Industrial Factories Commercial Centres 4 Major Recovered Paper Classification ONP OMG B&W OCC OLD MAGAZINES OLD NEWSPAPER OFFICEA4PAPER OLD CORRUGATED Waste paper from printers, office shredded paper, Included Leftovers from publishers, Weekly / monthly leftovers from publishers, books, Cardboard boxes, trimmings waste from electrics appliances, packaging manufacturers, textiles, fruits…etc

21. Paper Recycling System in Malaysia Current Distribution of Recovered Paper Major Recovered Paper Sources Household / Residential Newspaper Publishers ¥4-5 ¥7-8 ¥11-12 Town Councils Small Collectors / Packers (No Baling Machine) (Most of them own/rent 3MT Lorries) Paper Mills School’s Network Main Collectors / Packers / Wholesaler ( Most of them have their own baling machine) Charities Association Industrial Factories Commercial Centres Incentive / Rebate Support Collection Activities to School / Charities Confidential Documents * Price can be varies due to move of International Price

22. Paper Recycling System in Malaysia Higher Collection / Recovery of Recovered Paper By States

23. Paper Recycling System in Malaysia Small Collectors / Packers (No Baling Machine)

24. What We Learn From This Training • JPA & JRPA have a very active roles in promoting the recycling system in Japan • Active association memberships as advisor roles in promoting recycling program in each of the designated areas. • A strong / active action / Implementation Group such as Paper Recycling Promotion Center by JRPA • Noted that Japan have a very details classification of recycle waste for the residential, business and industrial communities / channel (Implemented since 1974) • Effective Recycling Message to the Public / Residences with A Good Government Support & Local Municipals • Japan Local municipals providing the facilities to the communities to ensure the success of the recycling system. • Good & Pro-active cooperation between paper mills and recycling industries in sharing information and relationship business trust. • A very matured legal system of Paper Recycling system established since 1974 or during the Pre-Edo • We need an on-going process to promote recycling program in all levels • Paper mills in Japan have created a very strong quality control of waste at wholesalers level and then to the collectors (reduce the incoming check of waste at paper mill)

25. What can we work/promote from now? • Exploring more public awareness of recycling of waste in all channels which can provide immediate impact towards the recovery of waste collection and quality incoming of the waste ( Example : schools, industrials, commercial, and residence areas) • Recently, some of the waste paper have been exported out from Malaysia which was reported by local customs. This definitely are some of the potential issue facing which reduce the rate of local collection recovery rate. (Working with local customs authorities to reduce the exporting of waste due to local shortage) • Paper mills in Malaysia, receiving most of the left-over / poor quality of in-coming waste from the wholesaler ( mainly OCC segment). We need get more guidelines or process details to overcome the in-coming from the wholesalers. • Malaysia’s waste paper specification need to be revise to Japan classification which can have a significant improvement on the quality of the waste papers collected. (Pre-print brochures, leaflets, sharing information to household, PTA…etc) • Looking at under-recovered areas / states in Malaysia which having a significant growth due to the developments by the state government ( East Malaysia : Sabah & Sarawak)

26. Possible cooperation/support from Japan? • To share more new ideas or technical knowledge in improving manufacturing yield within 2-3 years from now ( All paper production makers ). Targeting to reach 90 to 94% yield. • Malaysia at this moment still imports a significant volume of waste paper from Europe, USA and Australia. Therefore, with the excess of waste papers currently available which we hope Japan can provide some incentives to support us while we are still developing the strategy to recover more waste from the local market. • Japan have a well establishment of paper recycling system since 1974 till today which we hope we can be get more details pertaining the set-up which we can use to be implement / as a guidelines within the associations , members, communities and with our government bodies. • Existing methodology or quality checks implemented in Japan which can be use to assist to reduce our moisture issues and prohibited materials from the wholesalers. • Setting up WTE (Waste To Energy) plant for all paper mills by providing special grant to set-up the facilities • Possible to assist us or to provide a TIMELINE details how to set up A very establish paper recycling system ( Example : What we must do 1st before we move to 2nd Step)

27. Thank You Year 2012