The Malaysian oleochemicals market has to deal at the same time with new capacity investments and a downturn in demand which led to a surplus. Capacity grew 14% in 2002 while demand decreased from 3-4% down to 2%. Experts disagree on whether this surplus will be absorbed within the next 2-3 years or continue throughout this decade. Malaysia is also struggling with a decline in production of palm kernel oil, the major raw material for oleochemicals.
Source: www.oleoline.com vom 2003-08-04.