Updated Oct 27, 2022 03:46

Flax Fiber Market in Malaysia

Market Overview
The Malaysian flax fiber market totaled $ in , approximately reflecting the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption, however, faced a dramatic contraction. Over the period under review, the market attained the maximum level at $ in 2007; however, from 2008 to , consumption remained at a lower figure.


Consumption
Flax fiber consumption in Malaysia fell to tons in , waning by -% compared with the year before. In general, consumption showed a significant decrease. Flax fiber consumption peaked at tons in 2007; however, from 2008 to , consumption stood at a somewhat lower figure.

The value of the flax fiber market in Malaysia fell remarkably to $ in , with a decrease of -% against the previous year. This figure reflects the total revenues of producers and importers (excluding logistics costs, retail marketing costs, and retailers' margins, which will be included in the final consumer price). Over the period under review, consumption faced a drastic downturn. Over the period under review, the market hit record highs at $ in 2007; however, from 2008 to , consumption remained at a lower figure.


Market Forecast
Depressed by shrinking demand for flax fiber in Malaysia, the market is expected to continue its downward consumption trend over the next eight years. The performance of the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to depress the market volume to tons by the end of .

In value terms, the market is forecast to contract with an anticipated CAGR of -% for the period from to , which is projected to bring the market value to $ (in nominal prices) by the end of .


Market Structure
Flax fiber market in Malaysia consists almost entirely of imported products. In recent years, import price have increased sharply. Despite the hike in price, Malaysia relies completely on foreign supplies: the volume of domestic output remains insufficient to satiate market demand. In , the share of imports in total consumption accounted for % in value terms and % in physical terms. The share of imports decreased moderately ( percentage point) over the period under review.


Trade Balance
Malaysia remains a net importer of flax fiber; in physical and value terms, imports consistently exceeded exports from 2007 to . In , there was a significant trade deficit of tons, which was equal to $. This tangible trade deficit reflects the fact that the market remains dependent on imports, which is likely to continue in the medium term.