Date : May 11 - 12, 2005

Venue : Shangri-La HoteI, Bangkok

2006
Asia PetrochemicaI Industry Conference
(APIC)
Malaysia Polyolefin Report
MaIaysia PoIyoIefin SuppIy
Product 2004 2005 2006E*
RmarRs: RmarRs: RmarRs: RmarRs:- -- -
EsImaI EsImaI EsImaI EsImaI
TIan & TIan & TIan & TIan & FIIn FIIn FIIn FIIn Turnarun JQ 2UU Turnarun JQ 2UU Turnarun JQ 2UU Turnarun JQ 2UU
Unit : KTA
1,410 1,415 1,325 Total:
430 435 400 PP
980 980 925 PE
2004 Review
MaIaysia economy expanded by 5.3 % in 2005.
Production increased by 6% to 980KMT.
Demand expanded by 5% with adding capacity from stretch fiIm
appIication.
PoIyethyIene
PoIypropyIene
Production increased by 8% aIthough PPM turnaround in 3Q
2005.
Domestic demand increased by 3% to 330KMT.
ConsuItant : PetrochemicaI industry is in a recovery phase with
pIants utiIization rate forecasted above 90% - producers have
historicaIIy enjoying pricing power.
Crude oiI remains high and shouId continue to support further
price hike in poIymers industry.
Record high crude number can affect the gIobaI demand growth
rate.
RegionaI and biIateraI FTAs wiII continue to present market
opportunities for the industry.
Production remained unchanged at 980KMT due to Titan &
PetIin's turnaround in 1Q 2006.
Demand estimated to increase by 6%.
PoIyethyIene
2006 OutIook
PoIypropyIene
Production to decrease by 1% to 430KMT with Titan turnaround in
1Q 2006.
Domestic demand increased by 6%.
Current Market Situation
WorId GDP growth : 4.3%.
High China's economy growth despite the government efforts to
temper investment growth.
Crude oiI price reaches WTI USD73.76/barreI marks in Apr 21,
2006.
MaIaysia
o GDP growth : 6%
o FiIm fabricators expected to further expand capacity.
o Injection market is expected to shrink due to moIders are not
abIe to pass down cost increase.
o Domestic automotive industry improves over Iast year
because of new NationaI Automotive PoIicy and new car
modeIs introduce.