Economic Development will Drive the Growth Opportunities for Propylene Industry in Southeast Asia (Sea)

Polyolefin industry in Southeast Asia is growing at a much faster pace owing to the different macro-economic factors such as improving gross domestic product (GDP) growth rate, increasing per capita income and so on. Economic condition of Myanmar, Indonesia, Malaysia and Vietnam is improving since 2010, which indicates the economic stability of these countries.

Southeast Asia Propylene Market By IndustryARCThough Singapore, Thailand and Philippines economies are going through a tough economic downturn, it is expected that during the coming five years the respective economies will turn back and petrochemical industry will flourish with a lot of investment from petrochemical giants. New plants and existing plant expansion will increase the capability of the Southeast region to meet the growing propylene demand. With the economic improvement the consumer spending also increases due to micro economic factors such as increase in the disposable income. People buy more FMCD products, automobile; this increases the overall plastic consumption. Plastic is also used heavily in infrastructure and this explains the rapidly increasing consumption amongst individuals and corporate alike. Plastics and petrochemical companies in the Southeast Asia are equipping their factories with latest technologies and machineries to increase their production capacities. The demand of chemicals which are used for plastic production is on the rise. Polypropylene is one of the major ingredient chemical used in the production of plastic. It is a derivative product of propylene. As the economy grows, the petrochemical demand will be affected positively.