Malaysia Base Oil Market Outlook

the malaysian base oil market is expected to display a promising outlook. according to recent reports, the base oil demand in malaysia increased by 14% during the first quarter of 2018. this growth is attributed to factors such as the new regulations set by the malaysian government for the transportation of hazardous materials across the country, the increase in the use of lubricants in the automotive industry, and the rise of independent lubricants blending companies in the country. despite the retirement of certain products such as group ii base oils, due to new technology and increased regulations, the malaysian base oil market is expected to remain positive and maintain its steady growth. the country has noteworthy refining capacities, continuously increasing consumption along with development of new refinery projects. one of the factors of continued success for the malaysian base oil market is the presence of major segments like automotive & other consumer-related products, industrial products, and heavy duty products. furthermore, the presence of refining giants such as petronas and shell has allowed malaysia to stay competitive in the base oil market and encourages imports and exports of such products within the country. malaysia has also seen many reputable base oil distributors, such as sce benelux, adaram oils ltd., and suez, moving into the area and setting up operations. this has encouraged new competition in the market and provides convenience and assurance to industries, thus increasing the sales of base oils in the country. in addition, the country is also home to some of the world’s largest base oil refineries. in the years to come, malaysia could be looking into using the refineries in petronas and shell to produce the highest quality base oil, as well as blending oils in order to supply the entire asean region. it is predicted that malaysia will continue its dominance in the base oil industry until 2032. with increasing rates of technology, infrastructure, and regulations, the malaysian base oil market is expected to continue its growth, with an estimated 8% growth rate by 2030.