BMI View: We forecast Malaysia's mining industry to reach US$38.7bn by 2017, growing at an annual average rate of 2.5% from 2011 levels. The bulk of this growth will be led by the country's nascent gold mining sector, which has attracted a number of foreign investors in recent years. In contrast, the tin sector will continue to experience lacklustre growth due to depleting resources and falling ore grades.
| Brightening Outlook |
|Malaysia - Mining Industry Value & Growth|
We forecast Malaysia's mining industry to reach US$38.7bn by 2017, growing at an annual average rate of 2.5% from 2011 levels. Malaysia's mining sector is heading towards a brighter future in the coming years as foreign investors make a beeline for investment in the once booming industry. Anti-mining measures such as increased taxation and greater environmental regulations in neighbouring countries have taken its toll on miners and reignited enthusiasm over mining investment in Malaysia. To highlight, the government has issued 200 new mining leases since 2010, with Singapore-based iron ore miner Zhong Cheng Mining Sdn Bhd recently announcing the decision to move its entire operations to Malaysia. The company has invested a total of US$128mn in Malaysia to date, and is looking to triple that amount by 2016 in an attempt to fund its aggressive expansion programmes. Although we believe Malaysia's mining sector is poised to stage a comeback following the collapse of its tin mining industry in the 1980s, we cautioned that the path towards a brighter future will not be smooth as depleting reserves and the rising threat of social opposition will continue to inhibit output growth.
We expect Malaysia's nascent gold mining sector to account for the bulk of mining growth. Monument Mining's Selinsing gold mine is set to become the country's largest gold mine as the old Penjom mine's reserves run out. Malaysia provides an attractive mining legislative environment for foreign investors (tax holidays,...
The Malaysia Mining Report has been researched at source and features Business Monitor International (BMI)'s mining and commodity forecasts for metals, minerals and gems, covering all major indicators including reserves, production, exports and values. The report also analyses trends and prospects, national and multinational companies and changes in the regulatory environment.
BMI's Malaysia Mining Report provides industry strategists, service companies, company analysts and consultants, government departments, trade associations and regulatory bodies with BMI's independent forecasts and competitive intelligence on the mining industry in Malaysia.
- Use BMI's independent industry forecasts on Malaysia to test other views - a key input for successful budgeting and planning in this mining market.
- Target business opportunities and risks in Malaysia's mining sector through our reviews of latest mining industry trends, regulatory changes and major deals, projects and investments in Malaysia.
- Assess the activities, strategy and market position of your competitors, partners and clients via our Company Profiles (inc. KPIs and latest activity), Key Projects Tables and Competitive Landscape Tables.
BMI Industry View
Summary of BMI's key forecasts and industry analysis, covering mining reserves, supply, demand and prices, plus analysis of landmark company developments and key changes in the regulatory environment.
Business Environment Ratings
BMI's Mining Business Environment Ratings provide a country-comparative Risk-Reward Ratings index aimed at investors (mining companies and support service providers) in the regional mining market. The ratings methodology makes sophisticated use of over 40 industry, economic and demographic data points and is part of BMI's integrated Country Risk-Industry Ratings products.
Details and analysis of all current and planned developments (new ventures, capacity expansion and other investments) across the sector broken down by metal/ore.
BMI Industry Forecasts
Historic data series (2009-2012) and forecasts to end-2018 for all key industry and economic indicators (see list below), supported by explicit assumptions, plus analysis of key downside risks to the main forecast. Indicators include:
- Mining Industry: Industry size (US$mn), real growth (%), % of GDP, employment ('000), workforce as % of total workforce, average wage (US$).
- Output:Production volumes ('000 tonnes, carats etc.) for all major metals, minerals, ores and gems mined in each state, including bauxite, copper, gold, coal, lead, silver, tin, titanium, uranium, zinc etc.
- Exports: Value of exports (US$mn) for all major metals, minerals, ores and gems mined in each state .
- Commodity Markets: Global demand, supply, stocks and benchmark prices (US$) for aluminium, copper, lead, nickel, tin, zinc, gold and steel.
BMI Macroeconomic Forecasts
BMI forecasts to end-2018 for all headline macroeconomic indicators, including real GDP growth (%), inflation (%), fiscal balance (% of GDP), trade balance (US$bn), current account (US$bn) and external debt (US$bn).
Competitive Landscape Tables & Analysis
Comparative company analyses and tables detailing by US$ sales, % share of total sales, number of employees, year established, market cap/NAV, ownership structure, production and % market share.
Examines the competitive positioning and short- to medium-term business strategies of key industry players. Strategy is examined within the context of BMI's industry forecasts, our macroeconomic views and our understanding of the wider competitive landscape. The latest financial and operating statistics and key company developments are also incorporated within the company profiles, enabling a full evaluation of recent company performance and future growth prospects.