Yogender Singh, India, Asia-Pacific Correspondent12.08.21
Mr. Yaw Seng Heng- A brief Introduction
Mr. Yaw Seng Heng spearheaded Nippon Paint Malaysia Group to the top paints & coatings provider in Malaysia. He is widely known for his reputation in challenging the technological boundaries and “business as usual” practices within the paints market. His leadership in business practices and innovation won Nippon Paint several prestigious awards from Frost & Sullivan, Putra Brand Award and Readers’ Digest Trusted Brand Award.
His 37 years of vast experience has seen him establishing Nippon Paint’s manufacturing facilities in Pakistan (2006) and Bangladesh (2011). In 2014, he spearheaded the Nippon Paint Malaysia in assuming the control of Nippon Paint’s decorative companies in The Philippines and Thailand. In 2015, Mr. Yaw and his dedicated team of talents from Malaysia supported and propelled Nippon Paint’s decorative businesses in Indonesia with the implementation of the SAP ERP system and driving the business growth by focusing on tinting machines, strengthening distribution channels and churning our innovative products for the Indonesian market.
Mr. Yaw is widely known as the “systems architect” as he was instrumental in implementing the ISO 9001 Quality Management System, ISO 14001 Environmental Management System and the ISO 45001 Occupational Health and Safety Management System. He played a pivotal role when the Group decided to implement the SAP ERP system. Not only did he led the team towards the successful implementation of this system which saw a significant increase in productivity and efficiency, he went on to develop Nippon Paint Malaysia’s inaugural digital ecosystem called “CONNECT”.
A visionary leader championing the true entrepreneurial spirit, Mr. Yaw’s passion and drive are not only demonstrated in growing the business and brand but also in human development. Under his leadership, the Group has successfully churned out business leaders and talents who are key drivers of the company’s growth.
Coatings World- Can you give us a brief overview of Nippon Paints Malaysia’s operations? For e.g. installed capacity, number of manufacturing plants and focus area (architectural or industrial)?
Mr. Yaw Seng Heng- Established in 1967, Nippon Paint (Malaysia) Sdn. Bhd. has emerged as one of the most significant regional player in the paints and coatings industry with a strong presence in Pakistan, Bangladesh, the Philippines, Thailand and Indonesia.
We have 10 manufacturing facilities with a total annual installed capacity of 100,000,000 litres of paints & coatings products, more than 50 sales offices and a workforce of 6,000 people.
The Nippon Paint Malaysia Group (NPM Group) places a strong emphasis on Research and Development (R&D) activities, which remains a core priority to its success in product innovation. As a global leader in coating technologies with a database of more than 10,000 paint formulations, we pride ourselves at being a Total Coating Solutions provider with a multi-segment portfolio of offerings ranging from Architectural, Automotive, Industrial, Protective to Marine coatings from end-to-end solutions including painting tools and waterproofing solutions. In July 2020, Nippon Paint launched the industry’s first e-store, housing a range of coatings solutions and painting tools under one roof.
Coatings World- What is the approximate market share of Nippon Malaysia in the Malaysian paint & coating market?
Mr. Yaw Seng Heng- We dominate the Malaysian paint & coating market in both the major sub-segments of the industry. We have nearly 45% of the market share (on volume basis) in the architectural sub-segment and about 39% of the market share (on volume basis) in the industrial sub-segment in the country.
Coatings World- What is the approximate current size (volume and value) of Malaysia’s paint & coating industry? What is the split between the architectural and industrial segments? How has been the growth rates or CAGR for the Malaysian paint & coating industry in the last few years?
Mr. Yaw Seng Heng- Like many of the other Asian countries, architectural segment has a higher proportion in overall paint & coating industry in Malaysia. The architectural segment accounts for about 69% of the paint and coating industry volume in the country with an approximately value of USD 330 million (RM 1.375 billion) . The industrial segment holds the remainder of the industry with approximately of 31% amounting to approximately USD 153 million (RM 635 million).
Coatings World- Your Company has bought a major stake in Vital Technical, earlier this year. What is the significance of this acquisition for your company?
Mr. Yaw Seng Heng- In March 2021, Nippon Paint Malaysia acquired a majority stake in Vital Technical Sdn. Bhd. Vital Technical was established in 2002 and is the number one player in the Malaysian Sealants, Adhesives and Fillers (SAF) market. The acquisition is part of the group’s ongoing growth strategy as a market leader in the home and industrial improvement solutions industry, offering Total Coating and Construction Solutions.
The business integration will fortify our financial position through mutual sales while expanding product line-ups through innovative engineering that meets the needs of our customers. We will also be able to enhance competencies and efficiency through the increase of production capacity and coordination of raw material procurement.
Coatings World- How is the competitive landscape in the Malaysian Paints & Coating industry? How does Nippon Paint Malaysia score over the competitors?
Mr. Yaw Seng Heng-The paints & coatings industry has always been a very competitive and more so during the pandemic. However, we always keep ourselves ahead of the game by pushing innovation boundaries to churn out fresh, bold and transformative solutions that cater to our customers’ needs. We always have to be on our toes and be alert about changes in consumer patterns. Take for instance consumer buying patterns pre, during and post-pandemic. There has been a drastic increase in demand for anti-viral and anti-bacterial products which is why we have recently relaunched our Anti-Viral and Anti-Bacterial coating range.
This is why we continue to evolve ourselves- from being a Total Coating Solutions provider to now a Total Coating and Construction Solutions Provider. We hear our customers’ needs and find solutions that satisfy their needs in order to set ourselves apart in the market.
Nippon Paint Malaysia Group today has moved beyond offering comprehensive one-stop coatings, but also added on construction products that provide high quality, total compatibility, beautiful finishing and protection at every layer- from the floor to the roof and everything in between. This has also allowed us to capture both the construction and personal or home DIY market while offering affordable solutions for all segments.
Coatings World- What has been the impact of Covid 19 on your company’s operations and the Malaysian paint & coating industry?
Mr. Yaw Seng Heng- COVID-19 has been the largest disrupting factor for the businesses and humankind in one’s living memory. The pandemic has created huge disruptions in supply chains and prices, which had a huge impact on the demand for paints and coatings products. Controls on movement under the pandemic restrictions and raw material shortages limited production capacity for most of the industries, including ours.
We were also challenged with demand shortages and disruption of the raw material supply chain. However, with every problem comes an opportunity. COVID-19 for instance created an untapped market for us. In 2020 we seized the opportunity to re-launch our VirusGuard product with a new and improved formula, scientifically proven to be 99% effective against Covid-19 (Sars-CoV-2). VirusGuard was first launched in 2015 to combat H1N1, HFMD, E.COLI, MRSA and Staphylococcus Aureus.
Coatings World- Per capita consumption of paints and coatings, has remained low in the country. Do you see the situation changing in the medium and long term?
Mr. Yaw Seng Heng- This is partly correct. However, if you look at the figures from the previous decade, Malaysia has made rapid progress in the per capita consumption of paints & coatings products. We are very positive that this trend will continue on in the medium and long-term.
Coatings World- What according to you is the largest challenge facing the Malaysian paints & coating industry?
Mr. Yaw Seng Heng- The rising cost of raw materials is the single largest challenge for Malaysian paints & coatings producers. This increase has created a domino effect. Production costs have increased significantly. Paints and coatings manufacturers are forced to increase the product prices, which suppressed the demand of these paints & coatings products in some of the market segments.
Coatings World- Could you share your observation on some of the latest trends in the Malaysian paint & coating industry?
Mr. Yaw Seng Heng- More and more Malaysians are prioritizing their health now more than ever and this extends to their living and working spaces as well. Associations and building construction professionals in the market are finding ways to redefine the safety of their buildings and currently, it also means providing not just a conducive but a safe environment for better health and wellbeing of the community. Architects and property developers also need to rethink the design of spaces in this day and age to respond to the changes brought on by the pandemic. A proactive, long-term solution such as painting space and commonly frequented areas can minimise the risk of the spread of the virus through anti-microbial coatings.
As we are in the chemical industry, business sustainability through ESG practices has gathered momentum over the last few years. Many paints and coatings companies are coming up with more sustainable business practices such as committing to carbon footprint reduction, environmental protection, eliminating the use of lead and producing low VOC products.
Conversion of Malaysian Ringgit to USD based on 1 RM= 0.24 USD- Reference Date 110th November 2021
These figures are based on Coatings World research.
These figures are based on Coatings World research.
Mr. Yaw Seng Heng spearheaded Nippon Paint Malaysia Group to the top paints & coatings provider in Malaysia. He is widely known for his reputation in challenging the technological boundaries and “business as usual” practices within the paints market. His leadership in business practices and innovation won Nippon Paint several prestigious awards from Frost & Sullivan, Putra Brand Award and Readers’ Digest Trusted Brand Award.
His 37 years of vast experience has seen him establishing Nippon Paint’s manufacturing facilities in Pakistan (2006) and Bangladesh (2011). In 2014, he spearheaded the Nippon Paint Malaysia in assuming the control of Nippon Paint’s decorative companies in The Philippines and Thailand. In 2015, Mr. Yaw and his dedicated team of talents from Malaysia supported and propelled Nippon Paint’s decorative businesses in Indonesia with the implementation of the SAP ERP system and driving the business growth by focusing on tinting machines, strengthening distribution channels and churning our innovative products for the Indonesian market.
Mr. Yaw is widely known as the “systems architect” as he was instrumental in implementing the ISO 9001 Quality Management System, ISO 14001 Environmental Management System and the ISO 45001 Occupational Health and Safety Management System. He played a pivotal role when the Group decided to implement the SAP ERP system. Not only did he led the team towards the successful implementation of this system which saw a significant increase in productivity and efficiency, he went on to develop Nippon Paint Malaysia’s inaugural digital ecosystem called “CONNECT”.
A visionary leader championing the true entrepreneurial spirit, Mr. Yaw’s passion and drive are not only demonstrated in growing the business and brand but also in human development. Under his leadership, the Group has successfully churned out business leaders and talents who are key drivers of the company’s growth.
Coatings World- Can you give us a brief overview of Nippon Paints Malaysia’s operations? For e.g. installed capacity, number of manufacturing plants and focus area (architectural or industrial)?
Mr. Yaw Seng Heng- Established in 1967, Nippon Paint (Malaysia) Sdn. Bhd. has emerged as one of the most significant regional player in the paints and coatings industry with a strong presence in Pakistan, Bangladesh, the Philippines, Thailand and Indonesia.
We have 10 manufacturing facilities with a total annual installed capacity of 100,000,000 litres of paints & coatings products, more than 50 sales offices and a workforce of 6,000 people.
The Nippon Paint Malaysia Group (NPM Group) places a strong emphasis on Research and Development (R&D) activities, which remains a core priority to its success in product innovation. As a global leader in coating technologies with a database of more than 10,000 paint formulations, we pride ourselves at being a Total Coating Solutions provider with a multi-segment portfolio of offerings ranging from Architectural, Automotive, Industrial, Protective to Marine coatings from end-to-end solutions including painting tools and waterproofing solutions. In July 2020, Nippon Paint launched the industry’s first e-store, housing a range of coatings solutions and painting tools under one roof.
Coatings World- What is the approximate market share of Nippon Malaysia in the Malaysian paint & coating market?
Mr. Yaw Seng Heng- We dominate the Malaysian paint & coating market in both the major sub-segments of the industry. We have nearly 45% of the market share (on volume basis) in the architectural sub-segment and about 39% of the market share (on volume basis) in the industrial sub-segment in the country.
Coatings World- What is the approximate current size (volume and value) of Malaysia’s paint & coating industry? What is the split between the architectural and industrial segments? How has been the growth rates or CAGR for the Malaysian paint & coating industry in the last few years?
Mr. Yaw Seng Heng- Like many of the other Asian countries, architectural segment has a higher proportion in overall paint & coating industry in Malaysia. The architectural segment accounts for about 69% of the paint and coating industry volume in the country with an approximately value of USD 330 million (RM 1.375 billion) . The industrial segment holds the remainder of the industry with approximately of 31% amounting to approximately USD 153 million (RM 635 million).
Coatings World- Your Company has bought a major stake in Vital Technical, earlier this year. What is the significance of this acquisition for your company?
Mr. Yaw Seng Heng- In March 2021, Nippon Paint Malaysia acquired a majority stake in Vital Technical Sdn. Bhd. Vital Technical was established in 2002 and is the number one player in the Malaysian Sealants, Adhesives and Fillers (SAF) market. The acquisition is part of the group’s ongoing growth strategy as a market leader in the home and industrial improvement solutions industry, offering Total Coating and Construction Solutions.
The business integration will fortify our financial position through mutual sales while expanding product line-ups through innovative engineering that meets the needs of our customers. We will also be able to enhance competencies and efficiency through the increase of production capacity and coordination of raw material procurement.
Coatings World- How is the competitive landscape in the Malaysian Paints & Coating industry? How does Nippon Paint Malaysia score over the competitors?
Mr. Yaw Seng Heng-The paints & coatings industry has always been a very competitive and more so during the pandemic. However, we always keep ourselves ahead of the game by pushing innovation boundaries to churn out fresh, bold and transformative solutions that cater to our customers’ needs. We always have to be on our toes and be alert about changes in consumer patterns. Take for instance consumer buying patterns pre, during and post-pandemic. There has been a drastic increase in demand for anti-viral and anti-bacterial products which is why we have recently relaunched our Anti-Viral and Anti-Bacterial coating range.
This is why we continue to evolve ourselves- from being a Total Coating Solutions provider to now a Total Coating and Construction Solutions Provider. We hear our customers’ needs and find solutions that satisfy their needs in order to set ourselves apart in the market.
Nippon Paint Malaysia Group today has moved beyond offering comprehensive one-stop coatings, but also added on construction products that provide high quality, total compatibility, beautiful finishing and protection at every layer- from the floor to the roof and everything in between. This has also allowed us to capture both the construction and personal or home DIY market while offering affordable solutions for all segments.
Coatings World- What has been the impact of Covid 19 on your company’s operations and the Malaysian paint & coating industry?
Mr. Yaw Seng Heng- COVID-19 has been the largest disrupting factor for the businesses and humankind in one’s living memory. The pandemic has created huge disruptions in supply chains and prices, which had a huge impact on the demand for paints and coatings products. Controls on movement under the pandemic restrictions and raw material shortages limited production capacity for most of the industries, including ours.
We were also challenged with demand shortages and disruption of the raw material supply chain. However, with every problem comes an opportunity. COVID-19 for instance created an untapped market for us. In 2020 we seized the opportunity to re-launch our VirusGuard product with a new and improved formula, scientifically proven to be 99% effective against Covid-19 (Sars-CoV-2). VirusGuard was first launched in 2015 to combat H1N1, HFMD, E.COLI, MRSA and Staphylococcus Aureus.
Coatings World- Per capita consumption of paints and coatings, has remained low in the country. Do you see the situation changing in the medium and long term?
Mr. Yaw Seng Heng- This is partly correct. However, if you look at the figures from the previous decade, Malaysia has made rapid progress in the per capita consumption of paints & coatings products. We are very positive that this trend will continue on in the medium and long-term.
Coatings World- What according to you is the largest challenge facing the Malaysian paints & coating industry?
Mr. Yaw Seng Heng- The rising cost of raw materials is the single largest challenge for Malaysian paints & coatings producers. This increase has created a domino effect. Production costs have increased significantly. Paints and coatings manufacturers are forced to increase the product prices, which suppressed the demand of these paints & coatings products in some of the market segments.
Coatings World- Could you share your observation on some of the latest trends in the Malaysian paint & coating industry?
Mr. Yaw Seng Heng- More and more Malaysians are prioritizing their health now more than ever and this extends to their living and working spaces as well. Associations and building construction professionals in the market are finding ways to redefine the safety of their buildings and currently, it also means providing not just a conducive but a safe environment for better health and wellbeing of the community. Architects and property developers also need to rethink the design of spaces in this day and age to respond to the changes brought on by the pandemic. A proactive, long-term solution such as painting space and commonly frequented areas can minimise the risk of the spread of the virus through anti-microbial coatings.
As we are in the chemical industry, business sustainability through ESG practices has gathered momentum over the last few years. Many paints and coatings companies are coming up with more sustainable business practices such as committing to carbon footprint reduction, environmental protection, eliminating the use of lead and producing low VOC products.
Conversion of Malaysian Ringgit to USD based on 1 RM= 0.24 USD- Reference Date 110th November 2021
These figures are based on Coatings World research.
These figures are based on Coatings World research.