Fadillah Bin Yusof: “The industry must take cognizance of the challenges that global economies are currently facing, and determine the measures it can take to overcome these challenges.”

“The industry must take cognizance of the challenges that global economies are currently facing, and determine the measures it can take to overcome these challenges,” said Fadillah Bin Yusof, deputy minister of science, technology & innovation. He spoke at the MPMA International Plastics Conference in Kuala Lumpur.

To deal with regional competition, Fadillah called on the industry to upgrade and venture into manufacturing value-added products. The industry should move up the value-chain and must build its competitive edge, he told more than 200 delegates attending the November 4 to 5 conference.

Meanwhile, Southeast Asian plastics industry officials are watching how China deals with the global economic downturn.

One executive, who did not want to be named, said he expects China to adjust its export rebate duty on plastic goods -- a move that could hurt companies in Southeast Asia that are also pursuing export markets.

The rebate was 11 percent last year, and dropped to 5 percent this year. The executive also expects Chinese banks to reduce interest rates.

Export-oriented plastics factories in Malaysia, Thailand and Vietnam have benefited from the Chinese decision to reduce export rebate from this year. They have also won market share due to the appreciating yuan and rising labor costs in China.