Yogender Singh, India, Asia-Pacific Correspondent11.13.24
Editor’s Note: Craig Tham is the commercial head at AkzoNobel Malaysia, and he offers his insights into the Malaysian paint and coatings market. Unless otherwise specified, references in these responses pertain to the Malaysian context and reflect the interviewee’s opinions. These insights do not necessarily represent the broader market perspective.
Coatings World: Can you take us through the journey of AkzoNobel in Malaysia?
Craig Tham: AkzoNobel’s journey in Malaysia began with the acquisition of ICI Paints (Malaysia) Sdn Bhd in 2008, a company established back in 1959. Through this acquisition, AkzoNobel inherited the Dulux brand, which has been trusted by Malaysian customers for over 60 years. Today, our factory in the Nilai Industrial Estate, staffed by around 200 employees, supports the production of Decorative Paints, Metal & Specialty Coatings, and Protection & Marine Coatings.
In addition, our office in Petaling Jaya functions as a global business services hub, offering key support in finance, human resources, and supply chain, alongside serving as the commercial workspace for our various business units.
Further expanding our reach in Malaysia, we acquired Colourland Paints in 2018 to provide a comprehensive portfolio that addresses diverse market segments. Through these efforts, AkzoNobel has grown its presence and deepened its commitment to serving Malaysia’s evolving needs in the paint and coatings industry.
Coatings World: What is the approximate market share of your company in the architectural segment in Malaysia?
Craig Tham: Unfortunately, we are unable to disclose specific market share figures publicly. However, we’re proud to be recognized as one of the major players in Malaysia’s paint industry. We remain committed to strengthening our brand presence and continuously invest in expanding our distribution network to better serve our customers in the architectural segment.
Coatings World: What is the general state of the architectural coating industry in Malaysia? How has been the growth in the last few years? Which segments have outpaced the industry growth in the country over these years?
Craig Tham: The architectural coating industry in Malaysia is closely influenced by several macroeconomic factors, primarily construction growth, commercial and residential property development, and private consumption. When the construction and property markets are thriving, we tend to see an increased demand in the decorative paints industry, which can drive higher revenues for paint manufacturers and distributors. Over the past few years, these factors have played a pivotal role in shaping industry growth, with segments linked to new property developments and large-scale construction projects.
Coatings World: What is the approximate size of architectural coating market (value or volume) in Malaysia?
Craig Tham: While we’re unable to disclose the overall market value ourselves, one research firm has estimated the size of the Malaysia architectural coatings market at approximately USD 513.09 million for 2024¹, with the residential segment (by end-user) being the largest contributor.
Coatings World: How is the competition in the Malaysian coating industry?
Craig Tham: The decorative paints market in Malaysia is highly competitive, with a strong presence of global, regional, and local manufacturers. Some of the longstanding players in the industry include Nippon, Jotun, Kansai, Sancora, and KCC Paints, among others.
Coatings World: What are some of the key challenges facing the coating industry in Malaysia?
Craig Tham: Some of the major challenges facing the coating industry in Malaysia are supply chain disruptions and fluctuating raw material prices, which have impacted production and costs. Additionally, while there has been a gradual recovery in construction and infrastructure projects post-pandemic, this shift has affected paint and coating demand.
There’s also a noticeable shift toward more sustainable products as consumers increasingly value environmental benefits. To keep up with these evolving preferences, companies may need to invest more in R&D and innovation to offer more sustainable solutions that align with consumer expectations.
Coatings World: Your company acquired Colourland Paints Sdn Bhd a few years back. How has that acquisition helped you over the years? Do you plan to grow inorganically in the coming years?
Craig Tham: Since acquiring Colourland Paints Sdn Bhd, we’ve focused on streamlining its product portfolio to ensure we offer the right products for consumers in this segment. This acquisition has supported our commitment to invest in and strengthen our brands, while expanding the availability of our products to better serve our customers. Looking ahead, we remain dedicated to strategic growth initiatives that reinforce our market presence and customer reach.
Coatings World: Can you share with us your future expansion plans (greenfield or brownfield) in the country?
Craig Tham: We are committed to driving business growth and optimizing our operations in Malaysia. In the coming months, we will be relocating our ASEAN Regional Decorative Research & Development Hub from Singapore to Nilai, where our plant is located. This move will support our continuous efforts to upgrade existing products with the latest technologies, as well as innovate new products that meet the evolving needs of today’s discerning consumers.
Coatings World: Recently your parent company announced plans to cut 2,000 jobs globally. Would it have an impact on Malaysia operations?
Craig Tham: Recently, AkzoNobel announced a global plan to optimize costs and enhance the efficiency of its functions, which includes a reduction of approximately 2,000 positions globally. At this stage, we are still focused on optimizing costs and improving efficiency within our Malaysia operations to continue delivering on our commitments, particularly in brand investment and ensuring product availability for our customers.
Coatings World: Is AkzoNobel taking any steps to be a more sustainable company?
Craig Tham: At a global level we’re focused on realizing our science-based target of halving our carbon emissions across the value chain by 2030². It’s one of several ambitions we have for 2030, which also include achieving 100% circular use of materials in our own operations and empowering more than 100,000 people in local communities with new skills. In addition, we aim to have 30% female executives by 2025.
Here in Malaysia, at our Nilai factory, we’ve installed 1,438 solar panels since 2020, which helps us save around 30% on energy consumption each month. This is further powering our efforts to transition all our production locations to
renewable electricity.
Coatings World: What are some of the more sustainable products that AkzoNobel has developed? How are they addressing new trends and expectations from consumers?
Craig Tham: Consumers today are more discerning in choosing products, seeking products that are safer and healthier for their living and working spaces. At AkzoNobel, we invest into making our products more sustainable and longer lasting. Some of our decorative paint products in Malaysia are designed with bio-based materials and no added VOCs (volatile organic compounds), which helps to create healthier indoor spaces, reduced energy consumption, and less waste to nature.
Our Keep Cool technology, which we offer through our Dulux Weathershield range of paint products, can reduce energy costs by 10%-15% by lowering temperatures by up to 5°C. We also offer Dulux EasyClean Plus, featuring Silver Ion Technology, which provides a protective layer on the walls, effective against the growth of certain bacteria³ and viruses4.
Additionally, the newly launched Dulux Ambiance Pearl Glo, with HD Colour Technology and antioxidant properties, keeps walls looking vivid and fresh for longer. The Ambiance Pearl Glo product has been in Malaysia for more than 40 years and has a long and distinguished legacy of providing consumers with beautiful and rich color palettes for interior spaces.
Coatings World: Please share with us about AkzoNobel’s societal programs and how it’s helping local communities.
Craig Tham: We believe in the power of paint to transform lives by uplifting communities, changing behavior and making living spaces more fun, liveable and enjoyable. Our Let’s Colour program, part of our AkzoNobel Cares initiative, has positively impacted over 100 million people in 46 countries, using in excess of 2 million liters of paint. In Malaysia, we’ve supported local communities through partnerships with councils, schools, orphanages, non-profits, and businesses to brighten lives and protect what matters most.
One notable project was at SMK Seri Titiwangsa sports school in Kuala Lumpur, where we inspired 400 students and teachers with new murals and provided year-round protection to the exterior walls using Dulux Weathershield Powerflexx. Additionally, we partnered with the Melaka state government to repaint heritage buildings, preserving the city’s cultural identity and creating economic opportunities by attracting tourism.
References:
1. Report sourced from https://www.mordorintelligence.com/industry-reports/malaysia-architectural-coatings-market
2. Baseline 2018
3. Anti-bacteria performance
* Dulux EasyClean Plus has been tested against 6 types of bacteria as per TUV-JIS Z 2801 test method. Dulux EasyClean Plus sample was found to meet the anti-bacterial performance requirements for the following set of bacteria:
- Pseudomonas aeruginosa (ATCC 9027)
- Staphylococcus aureus (ATCC 6538P)
- Bacillus subtilis (ATC 6633)
- Salmonella typhimurium (ATCC 14028)
- MRSA (NCTC 12493)
- Escherichia coli (ATCC 8739)
4 Anti-virus performance
• Effective against human coronavirus NL-63 (99% efficacy) - with 30 min of exposure on the painted surface (based on certificate of
analysis issued by IMSL UK)
• This is NOT tested for coronavirus disease 2019 (COVID-19)
• Virus and bacteria can also spread through other external/Internal surfaces.
Coatings World: Can you take us through the journey of AkzoNobel in Malaysia?
Craig Tham: AkzoNobel’s journey in Malaysia began with the acquisition of ICI Paints (Malaysia) Sdn Bhd in 2008, a company established back in 1959. Through this acquisition, AkzoNobel inherited the Dulux brand, which has been trusted by Malaysian customers for over 60 years. Today, our factory in the Nilai Industrial Estate, staffed by around 200 employees, supports the production of Decorative Paints, Metal & Specialty Coatings, and Protection & Marine Coatings.
In addition, our office in Petaling Jaya functions as a global business services hub, offering key support in finance, human resources, and supply chain, alongside serving as the commercial workspace for our various business units.
Further expanding our reach in Malaysia, we acquired Colourland Paints in 2018 to provide a comprehensive portfolio that addresses diverse market segments. Through these efforts, AkzoNobel has grown its presence and deepened its commitment to serving Malaysia’s evolving needs in the paint and coatings industry.
Coatings World: What is the approximate market share of your company in the architectural segment in Malaysia?
Craig Tham: Unfortunately, we are unable to disclose specific market share figures publicly. However, we’re proud to be recognized as one of the major players in Malaysia’s paint industry. We remain committed to strengthening our brand presence and continuously invest in expanding our distribution network to better serve our customers in the architectural segment.
Coatings World: What is the general state of the architectural coating industry in Malaysia? How has been the growth in the last few years? Which segments have outpaced the industry growth in the country over these years?
Craig Tham: The architectural coating industry in Malaysia is closely influenced by several macroeconomic factors, primarily construction growth, commercial and residential property development, and private consumption. When the construction and property markets are thriving, we tend to see an increased demand in the decorative paints industry, which can drive higher revenues for paint manufacturers and distributors. Over the past few years, these factors have played a pivotal role in shaping industry growth, with segments linked to new property developments and large-scale construction projects.
Coatings World: What is the approximate size of architectural coating market (value or volume) in Malaysia?
Craig Tham: While we’re unable to disclose the overall market value ourselves, one research firm has estimated the size of the Malaysia architectural coatings market at approximately USD 513.09 million for 2024¹, with the residential segment (by end-user) being the largest contributor.
Coatings World: How is the competition in the Malaysian coating industry?
Craig Tham: The decorative paints market in Malaysia is highly competitive, with a strong presence of global, regional, and local manufacturers. Some of the longstanding players in the industry include Nippon, Jotun, Kansai, Sancora, and KCC Paints, among others.
Coatings World: What are some of the key challenges facing the coating industry in Malaysia?
Craig Tham: Some of the major challenges facing the coating industry in Malaysia are supply chain disruptions and fluctuating raw material prices, which have impacted production and costs. Additionally, while there has been a gradual recovery in construction and infrastructure projects post-pandemic, this shift has affected paint and coating demand.
There’s also a noticeable shift toward more sustainable products as consumers increasingly value environmental benefits. To keep up with these evolving preferences, companies may need to invest more in R&D and innovation to offer more sustainable solutions that align with consumer expectations.
Coatings World: Your company acquired Colourland Paints Sdn Bhd a few years back. How has that acquisition helped you over the years? Do you plan to grow inorganically in the coming years?
Craig Tham: Since acquiring Colourland Paints Sdn Bhd, we’ve focused on streamlining its product portfolio to ensure we offer the right products for consumers in this segment. This acquisition has supported our commitment to invest in and strengthen our brands, while expanding the availability of our products to better serve our customers. Looking ahead, we remain dedicated to strategic growth initiatives that reinforce our market presence and customer reach.
Coatings World: Can you share with us your future expansion plans (greenfield or brownfield) in the country?
Craig Tham: We are committed to driving business growth and optimizing our operations in Malaysia. In the coming months, we will be relocating our ASEAN Regional Decorative Research & Development Hub from Singapore to Nilai, where our plant is located. This move will support our continuous efforts to upgrade existing products with the latest technologies, as well as innovate new products that meet the evolving needs of today’s discerning consumers.
Coatings World: Recently your parent company announced plans to cut 2,000 jobs globally. Would it have an impact on Malaysia operations?
Craig Tham: Recently, AkzoNobel announced a global plan to optimize costs and enhance the efficiency of its functions, which includes a reduction of approximately 2,000 positions globally. At this stage, we are still focused on optimizing costs and improving efficiency within our Malaysia operations to continue delivering on our commitments, particularly in brand investment and ensuring product availability for our customers.
Coatings World: Is AkzoNobel taking any steps to be a more sustainable company?
Craig Tham: At a global level we’re focused on realizing our science-based target of halving our carbon emissions across the value chain by 2030². It’s one of several ambitions we have for 2030, which also include achieving 100% circular use of materials in our own operations and empowering more than 100,000 people in local communities with new skills. In addition, we aim to have 30% female executives by 2025.
Here in Malaysia, at our Nilai factory, we’ve installed 1,438 solar panels since 2020, which helps us save around 30% on energy consumption each month. This is further powering our efforts to transition all our production locations to
renewable electricity.
Coatings World: What are some of the more sustainable products that AkzoNobel has developed? How are they addressing new trends and expectations from consumers?
Craig Tham: Consumers today are more discerning in choosing products, seeking products that are safer and healthier for their living and working spaces. At AkzoNobel, we invest into making our products more sustainable and longer lasting. Some of our decorative paint products in Malaysia are designed with bio-based materials and no added VOCs (volatile organic compounds), which helps to create healthier indoor spaces, reduced energy consumption, and less waste to nature.
Our Keep Cool technology, which we offer through our Dulux Weathershield range of paint products, can reduce energy costs by 10%-15% by lowering temperatures by up to 5°C. We also offer Dulux EasyClean Plus, featuring Silver Ion Technology, which provides a protective layer on the walls, effective against the growth of certain bacteria³ and viruses4.
Additionally, the newly launched Dulux Ambiance Pearl Glo, with HD Colour Technology and antioxidant properties, keeps walls looking vivid and fresh for longer. The Ambiance Pearl Glo product has been in Malaysia for more than 40 years and has a long and distinguished legacy of providing consumers with beautiful and rich color palettes for interior spaces.
Coatings World: Please share with us about AkzoNobel’s societal programs and how it’s helping local communities.
Craig Tham: We believe in the power of paint to transform lives by uplifting communities, changing behavior and making living spaces more fun, liveable and enjoyable. Our Let’s Colour program, part of our AkzoNobel Cares initiative, has positively impacted over 100 million people in 46 countries, using in excess of 2 million liters of paint. In Malaysia, we’ve supported local communities through partnerships with councils, schools, orphanages, non-profits, and businesses to brighten lives and protect what matters most.
One notable project was at SMK Seri Titiwangsa sports school in Kuala Lumpur, where we inspired 400 students and teachers with new murals and provided year-round protection to the exterior walls using Dulux Weathershield Powerflexx. Additionally, we partnered with the Melaka state government to repaint heritage buildings, preserving the city’s cultural identity and creating economic opportunities by attracting tourism.
References:
1. Report sourced from https://www.mordorintelligence.com/industry-reports/malaysia-architectural-coatings-market
2. Baseline 2018
3. Anti-bacteria performance
* Dulux EasyClean Plus has been tested against 6 types of bacteria as per TUV-JIS Z 2801 test method. Dulux EasyClean Plus sample was found to meet the anti-bacterial performance requirements for the following set of bacteria:
- Pseudomonas aeruginosa (ATCC 9027)
- Staphylococcus aureus (ATCC 6538P)
- Bacillus subtilis (ATC 6633)
- Salmonella typhimurium (ATCC 14028)
- MRSA (NCTC 12493)
- Escherichia coli (ATCC 8739)
4 Anti-virus performance
• Effective against human coronavirus NL-63 (99% efficacy) - with 30 min of exposure on the painted surface (based on certificate of
analysis issued by IMSL UK)
• This is NOT tested for coronavirus disease 2019 (COVID-19)
• Virus and bacteria can also spread through other external/Internal surfaces.
