Despite the global commodity price impact and financial market volatility, Malaysia's economy remained strong owing to a diversified production and export base, strong balance sheet position, flexible exchange rate, responsive macroeconomic policies and deep financial markets. The Malaysian economy expanded by 4.2% in the first quarter of 2016. Construction industry in the country has observed a robust growth rate in last five years. The value of the construction industry was recorded MYR 140.0 billion in 2015, which increased to MYR 166.0 billion in 2016. The growth in the construction industry has tremendously impacted the tiles market in the country. Also, it has been forecasted that the construction sector is expected to grow by 8.0% in coming year and will reach at MYR 170.0 billion in 2017; this will further boost the demand of tiles in the country.
Tile manufacturing industry in Malaysia shows a different picture than the one existing 20 years ago. In earlier times, people had cemented floors in their houses and other places such as office, retail outlets and others. With the rise in standard of living, tiles for floors were introduced in the market which had quality as well as aesthetic beauty. In early years, the tiles were used only on the floors by the customers including the residential sector, commercial sector, hospitality and healthcare sector and others. With the changing time and introduction of new variants in the tile industry, the market has witnessed a sharp peak in the sales of wall and roof tiles. Moreover, the further expansion of product portfolio of the tile companies has led to increase in the revenues of the industry. The companies introduced variants such as 3D tiles, carpet tiles and others in the market.
The replacement demand for tiles had increased over the years by existing residential, commercial and government units in the country which had positively impacted the tiles industry. The rising export of the Malaysian tiles due to high demand in the international market has further supported the revenues of the industry. The tiles market has enhanced over the years with the entry of new products in the country. Also, it has been observed that the Malaysian population has gradually shifted from cement and stone floors, wall paints and other materials to floor tiles, wall tiles and roof tiles.
Most of the newly constructed houses and commercial complexes are using tiles for flooring due to ease of installation and easy availability in variety of forms based on the requirement of individual product. The prices of porcelain tiles are higher as compared to other types of tiles which cause higher revenue generation by this segment. Porcelain tiles can be used for both indoor and outdoor application and can be used on floors and exterior walls. In cases of high foot traffic, high moisture content and when the people do not have high pricing issue, porcelain is preferred choice. This led the porcelain tiles to contribute higher share in the tiles market in Malaysia in 2016.
The southern and central region of Malaysia dominated in total sales of tiles in the country in 2016 owing to the high number of commercial and residential buildings in these regions. Places including Meleka, Kuala Lumpur, Bahu, Johar and others fall under this category. The southern region of the country is the major hub for the manufacturing of tiles and hence attributed to the revenues of tile industry in Malaysia in 2016. The increase in the number of residential units created a huge demand for the tiles in the country. In addition to this, the residential units have a constant demand of the replacement tiles which attributes to the tile industry in the country.
Malaysia tile industry is saturated and fragmented in nature with various organized and unorganized players operating in the space. Established players are already having strong presence in the market and hence new players can enter the market only when it is a big brand or there is a big merger or acquisition. The big players concentrate on the exports as well as domestic market whereas the small players cater to the domestic demand for tiles in the country. The parameters used for competition between the companies include quality, variety, price, location of plant and branding. Location of plant is very important so as to increase sales and decrease transportation cost. Guocera, MML, Niro and White horse focus on quality and hence are more expensive. They also invest significant portion of revenue on branding and advertising.
The competition in the Malaysia tile industry is very high and the companies have developed various strategies to compete. Few strategies include holding various events and promotions for its customers, strengthen manufacturing capabilities and enhancing its production plants, investing in technology to improve their quality and to keep innovating and launching new products designs, acquire other firms to expand its market and reduce production cost through research in raw materials to achieve higher financial results. The major firms in Malaysia Tiles market in terms of revenue include YI-LAI Berhad, White Horse, MML, Kim Hin Industry Berhad, Guocera, Seacera Group Berhad, Johan holdings and Niro Ceramic Group.
The market will increase in future owing to growing urbanization and changes in type of dwelling. The number of households is anticipated to increase by 2021 raising the demand for residential units, which will directly impact the tiles industry in the country. The incline in commercial spaces in future will lead to rise in the requirement of the tiles. Increase in number of hotels in coming years will affect the market positively. Latest innovations, new launches and replacement tiles are expected to trigger the demand for tiles in the country.
Key Topics Covered in the Report
Sales Tiles Malaysia
Guocera Malaysia Tiles
MML Tiles Market Malaysia
Ceramic Tiles Demand Malaysia
Wooden Flooring Market Malaysia
Architect Demand for Tiles Malaysia
Kim Hin Industry Tiles Sales
Ceramic Tiles Sales Yi-LAI
Puzzle Floor Tiles Market Malaysia
Niro Ceramics Tiles Revenue Malaysia
Tile Manufacturer Malaysia White Horse
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