J. Pack. Sci. Technol. Vol. 5 No. 2 (1996)

The Packaging Industry in ASEAN
アセアン諸国の包装産業

Andrew Lee Siew Ling*

I

Introduction

This paper attempts to provide information ofmembers country of ASEAN. As many of these

The Asia Pacific region has register the high-countries do not have detailed data for thee s t a n d f a s t e s t e c o n o mi c g r o w t h r a t e i n t h epackaging industries, most of the data fromworld in the past few year (see Table 1). This

this paper are extracted from papers written byhas significantly impact the ASEAN packaging

participants that has taken part or have con-industry. The to tal packaging market for thetributed to the training carried out by the Pack-A S E A N c o u n t r i e s w a s a b o u t U S $ 6 . 5 b i l l io n .

aging Centre in Singapore. The paper will

The characteristics of the packaging industry

cover first packaging R&D in this region, thein most of the ASEAN countries are towards

specific packaging industry, the general trendhigh growth rates, a strong do mestic-orientation and national/regional markets.

and conclusion will be address at the end of
this paper.

Table 1 Gross national product of countries in ASEAN

Year
Country
SINGAPO RE
S'pore Dollar inMillion
MALAYSIA
Ringgit in Million

1987

1988
1989
1 990
1991
%
%
%
%
%
Currency
Currency
Currency
Currency
Currency
growth
growth
growth
growth
growth42,63610.20

49,99817.20

56, 844

13.70

63,67812.02

69,076

8.47

79,62511.20

90,86114.10 102,534 12.84 115,569 12.70 129,541

12.08

INDONESIA
Rupiahs in Million

124,817 21.56 142,105 13.85 167,185 17.50 196,919 17.70 227, 186 15.40

THAILAN D
Bahts in Million

1,299,913 14.76 1,559,804 20.00 1,856,476 19.01 2,182,100 17.54 2,509,427 15.00

PH I LIPPIN ES
Pesos in Million
JAPAN
Yen in Thousand
Million

68 5, 068 12.50 802,519 17.14 925,161 15.30 1,070,900 15.75 1,244,037 16.20
348,425

4.10

371,428

6.60

396, 197

6.70

424,5377.15

450,795

6.20*Packaging Center, Singapore Institute of Standards & Industrial Research, 1 Science Park Dr., Singapore 0511

- 81

The Packaging Industry in ASEAN

1. Pressure Factors for the Packaging

system, Asian countries have createdremarkable market impact in Europe, USA

Packaging in ASEAN, like the rest of theand Middle East. The packaging material

world, is subjected to a wide array of pressures,cost, logistic cost, have a great impact onespecially competitive pressures, environmen-

those manufacturers who export their prod-

ta l p re ssu re an d p re ss u res f ro m ne w r eg u la -ucts to faraway distance countries. There istions. These pressure arise from various fac-

an urgent need for every Asian industry totors as follows:develop an ecological packaging design in(a) The consumer profile in ASEAN has

logistics to minimize the packaging mater-c h a n g e d d ra s ti ca ll y o v e r the yea r s .

ial cost and logistic cost.

ASEAN econo mic success has brought in(c) Environmentalism

more wealth for their people and enhanced

Environmental pressures aimed at the solid

their buying power and expectation. Morewaste problem originally stemmed fro m

and more Asian consumers are demandingt w o p r i ma r y c o n c e r n s ( i ) t h e p e r c e i v e dquality and variety, product safety, hygieneloss of land fill space and (ii) the damage

and nutrition. Producers are now faced

to the ozone layer caused by chlorinatedwith the challenge of harmonizing modern

flouro-carbons (CFC's). Singaporeans gen-lifestyle with ethnic preference. With moreerate over 2 million tonnes of solid waste

women entering the workforce changes ineach year. If we separate our household

lifestyle are inevitable. This leads to differ-waste, more than 40% consists of paper,ent demands for packaging. For example,

plastic textiles, cans and glass which could

Asian consumers are willing to pay extra

be reused or recycled.

money for convenient packaging which are(d) Law and regulation which affects and will

easy to open and re-close, and can beaffect the packaging industry

placed in a microwave oven. Many new

Packaging legislation established inpackaging design that are already available

Europe and USA has affected the ASEAN

or will be developed according to the con-

Packaging Industries as ASEAN products

venience de mand. In addition, people aretransported to these countries must adhere

looking for variety of foods which are light,

to these legislation. Therefore many

low in calories, quick, or have other desir-

ASEAN Industries have been forced toable characteristic.

switch from the current packaging design(b) Cost remains the most important factor forto the new packaging design in terms of

packaging industry

the packaging material, labelling, bar cod-

With the opening up of the borders andbetter communication and transportation

ing and structure.
Packaging laws and regulations in the- 8 2 -

J. Pack. Sci. Technol. Vol. 5 No. 2 (1996)

region are still in the development stage.

metallizing layer.
4) Cost effective package for electronics prod-

2. Current R&D Situation in Singapore
and ASEANu ct.
In Mitsubishi they are trying to modify the
product to withstand the shock and vibra-

Many research and development projectt io n h az a rd s i n t h e d is t r i b u t i o n w i t h l es sdone in ASEAN co ncentrated mainly on costdamage, the result is in the packaging cost.

reduction and environment friendly packaging.

There are two examples; One is package of

Cost is the most important drive factor of R&D

an electrical heater and packaging for air-in every industries. Every industry tries hardconditioner.

to minimise their total packaging cost.

From these two examples we can see how

Total packaging cost is a combination of the

it is important for our product designer andcosts for materials, equipment operations,packaging designer to be aware that inte-

labour and logistics. The packaging cost cangration of the packaging design into thealso include the cost of product recalls, failure

function design and aesthetic design of theto re-purchase by customers and cost of

product is important.

repackaging. There are two approaches toSony Japan has also make many efforts tod ev el op eco lo gi ca l p ac ka g i n g d e s i g n . O n e i s

reduce the packaging for their electronics

the concentration on individual packaging.

p rod ucts.

Packaging designs should minimize theAnother examples of cost reduction is mul-amount of consumer packaging as well astransport packaging.

tiple slot packaging design for the harddisk drive. The new technologies devel-

2.1 R&D example of cost reduction for individual packaging
There are numerous R&D examples of effective packaging reduction efforts.
1) Glass containers today are typically manu-

oped by SISIR's Packaging Centre cut

factured with less material th an was usedtion load deflection of Polyurethane resulte v e n a s r ec e n t l y a s t e n y e a r s a g o .

in extra time and cost. SISIR's Packaging

Sankawa's downtime by 50%.
Multiple slot packaging is commonly usedin the local hard disk drive industry. Determining the acceleration value and indenta-

2) Metal cans, particularly aluminium bever-Centre developed the cushion curves forage cans, weigh less than they did in the
past.

the Sankawa packaging and save at least
15% in material costs.

3) Many products which formerly has several
layers of packaging now have only one with

2.2 R&D example of cost optimization inlogistics- 8 3 -

The Packaging Industry in ASEAN

The second approach in cost reduction is tocushioning and various cushion constructure to

overview the entire logistic process to optimize

protect the video recorder. After evaluation

total cost in logistics. SISIR's packaging centre

tests, we have identified the most competitive

has developed a window based software pack-cushion design using corrugated fibreboard

age COPS (Cost Optimization Packaging Sys-c u s h i o n i n g .

tem) to help the companies minimise their dis-

It is most important that the proposed pack-tribution cost by optimizing space usage as wella g i n g u si n g c o r r u g a t e d b o a r d c u s h i o n i n g a r e

as packaging materials. The software examines

able to compete with existing packaging inall possible combinations of packing products

terms of technical requirements and cost sav-

into their containers and then provides the user

ings. For a good cushion design the cushion-

with best solution to package the products.

ing must not only possess function for the

COPS then optimizes both cost of packaging

cushioning purpose but as well as on the pur-materials and logistics cost so that the mostpose of supporting the product. Due to the easy

cost effective packaging arrangement can bemoulding methods, the existing EPS cushion-

selected. COPS is extremely useful to person-

ing could easily satisfy both these functio ns

nel involved in sales budget estimation, prod-

together. Creating a workable new corrugated

uct design as well as logistics planning. COPS

board cushioning that combines both the func-

is designed to be efficient and user friendly andtion seems mo re co mplicated than EPS cush-helps companies achieve greater profit max-

ioning. However, the corrugated cushioning

i mi s a t i o n w i t h o u t c o mp r o mi s i n g p a c k a g i n gmaterial quality and operational efficiency.

design could be divided into 2 parts, the construction part and the cushion design part.
Besides the Egg tray, moulded pulp are

2.3 Development of environmentally friendly
packaging for electric productOne of the most significant research andenjoying strong growth especially for electron-

development is the transport packaging design

development is on its way to evaluate the cush-using recyclable packaging material i.e. corru-

ion pads in terms of the cushion dimension andgated fibreboard paper instead of using expand-s t r u c t u r e a s t h e r e a r e n o r e c o g n i s e d me t h o d

ed polystrene form (EPS) because of the envi-

to design moulded pads.

ic products with light weight such as Fax
machine, video camera etc. Research andOverall, it appears that moulded pulp has theronmental pressure.
SISIR's Packaging Centre has developed apotential to replace EPS foam. However mould-

corrugated fibreboard cushioning to replace

ed pulp as a cushioning material is inappropri-

the EPS cushion for video recorders. Based on

ate for the packaging of heavy products or

our experience, we developed a basic table oft h e mo d u l a s t r u c t u r e f o r c o r r u g a t e d b o a r d

products experiencing rough handling.
The shortage of forest in ASEAN is becom-- 8 4 -

J. Pack. Sci. Technol. Vol. 5 No. 2 (1996)

ing another big environmental issue particu-

under way to define "typical" systems which

larly in China. To have new pallet to partiallyare realistic enough that they can be used as

replace the timber pallet is becoming a need.

the basis for evaluation of packaging/disposal

Pallets made of corrugated fibreboard anddecision or to define a more restrictive process

honeycomb and plastic have already developed

which can be used.

and used in the ma rket.

A new approach to reducing packaging in

SISIR's Packaging Centre has developed aconsumer packaging is to sell refills of con-one way EPS pallet for a local company. The

centrates for certain products. For example,

designed strength of the pallet can sustain up

concentrated refills are now available for sev-

to 1 ton loading. This means that the corru-

eral types of laundry products. Some packing

gated pallet is used in one way plastics palletuses gallon plastic bottles for the original pack-are mostly used in reuse cases. In Japan, someage and simple packaging for refill.

plastic pallets have been in use for many years.

With the development of metallizing coating,

In Thailand, there will be a plastic pallet man-a lot of solid packaging has been replaced andufacturer.

will be replaced by the flexible packaging.

Many approaches have been proposed toLightweighting of all flexible packaging isdevelop the environment friendly packaging by

being promoted as being environmentally1) requiring manufactures to "take back" used

responsible, as is the idea of using a single

packaging,ma t e r i a l s w h e n e v e r p os s i b l e f o r a c o mp l et e2) banning of certain materials, usually plas-pack. If a single material pack is not possible,

tics,

then the next target is easy separation of con-3) requiring that packages be made of only

stituent element fo r recycling.

one material,

3. Future Packaging R&D in Singapore
and ASEAN

4) minimizing printing on packages,5) requiring packaging to be made of recyclable or recycled material,

3.1 Computer models for shelf-life prediction6) requiring packages to be made of

An article published in Tapp i stated that,b i o d e g r a d ab l e ma t e r i a l ,7) adopting the ERA hierarchy of reduce,"Approximately 50% of the food in third world

reuse, recycle, incinerate, land fill, andcountries is rendered unusable due to lack of8) choosing package designs only after a life

proper packaging. There is an urgent need tohelp food industries to choose appropriate

cycle analysis of each package type.
Experience has shown that each of thesepackaging materials for the food products they

approaches have advantages and disadvantages. Thus research and develop ment are

produced.
Research and development in SISIR is on the- 8 5 -

The Packaging Industry in ASEAN

way to develop a computer model for shelf-life

created by each different type of cushioning

prediction. This computer will provide a meansmaterial or design, in response to a shock

to pretest materials before actual storage test-

input. Match the cushion design to the prod-

ing. In this computer program product, storage

uct sensitivity profile.

parameters, packaging materials are enteredF i n it e eleme n t mo d el lin g c an b e ex pec te dindependently. The computer will provide as o me d a y t o a l l o w t h e p r o d u c t d e s i g n e r t o

combination of the product and packaging forstorage time and cost.

assess each design's sensitivity to various

3.2 Source reduction: less waste in the firstp l a c e
Source reduction (also known as waste
reduction, waste minimisation waste prevention) is a term that describes the prevention ofwaste at its source by using the minimum
quantities of materials necessary to achieve adynamic inputs so that inherent strength canbe designed originally into the product rather
than rely on package design to supplement the
shortcomings of the product.
Verification procedures (such as ISTA,
ASTM, ISO) can result in more efficient packages being designed and implemented in much
shorter time frames with lower expected failure rates. Relying on performance definitions

required function.
In essence, source reduction is a form of
resource optimisation, i.e., making best use of
the resources required to produce the package.
Such an approach make sense not only for the

opens the field of alternatives for the designer
to any number of materials and methods for
packaging his/her products.
All of these will enable us to realize the true
value of Source Reduction opportunities. It canenvironment, but also as a business strategy.
There are many tools available for implementing Source Reduction procedures in pack-be the driver for technology development, but
we have to resist the current Luddite atmosphere that positions packaging as the perfect

age design and development.
Targeted distribution environmental mea-

analogy for our wasteful, disposable society.

surement should result in more appropriate validation test of designs so the package can betargeted toward the intended distribution
rather than some large, amorphous generictransport system. This is design only for what

3.3 Life cycle analysis (LCA)
As a theory, Life Cycle Analysis (LCA) would
seem to be the ideal approach in the selectionof the best packaging. An LCA evaluation identifies all inputs and effects involved in the man-the package is expected to see.
Damage Boundary Analysis offers the opportunity to more closely match the product's sensitivity to shock input to that damage potential- 8 6 -

ufacture, use, and disposal of a particular product, from cradle to grave. Alternative systems
for handling a container, such as reuse, disposal after a single use, or recycling, can be

J. Pack. Sci. Technol. Vol. 5 No. 2 (1996)

specified and analyzed. The factors concerned

must carry out R&D project for your own prod-in LCA are: extraction of raw materials, con-ucts to continuously create new product andsumption of energy, emissions to air, emission

packaging, which can live, survive and per-to water, emission to soil, pruduction of solid

suade in different culture and environment

waste. The result of an LCA is a vector of infor-

Last but not least, it is also important formation. For example, the amount of electrical

ASEAN packaging industries to take into con-energy required to manufacture, use and dis-sideration our own natural resources. For

pose of a package according to a specified

example; the vast forest in Indonesia could

scheme can be estimated and compared to thebring many environmentally friendly packaging

electrical energy required for several alterna-

for wine or tube form product. The skin of thetive. Unfortunately, the requirements for otherbanana in Philipines could be reused again forforms of energy, the amount of mining

other product and even coconuts in Malaysia

required in some other country, the amount of

could replace the EPS cushioning in the nearoil or gas that will need to be imported, thefuture.

level of employment, and many other factors
may also be altered. The difficulty comes when

II

Singaporethese different measures are compared to try

1. Introduction

to determine the optimal selection. Currently,
there is no generally accepted system for mak-Singapore consists of the island of Singapore

ing the decision based on the effects on a vari-and some 58 islets within its territorial waters.

ety of factors.

It is situated approximately 136.8 kilometres

In ASEAN Mitsubishi conducted LCA for

north of the Equator. The main island is about

expanded polystyrene form (EPS) used in their

42 kilometres in length and 23 kilometres inelectronics appliance.

breadth, and 580.6 square kilometres in area.
It has a coastline of approximately 150.5 kilo-

4. The need for Packaging R&D in
A S E A N

metres. The total land area, including the islets,
is 639.1 square kilo metres.
Singapore's immediate neighbours are

Packaging R&D in ASEAN is a combinationof technology transfer and technology innovation. Many packaging industries were challenged and will be challenged by the global
market, environment issue and legislation. The
packaging industries especially the industries
that export the product to different countries,- 8 7 -

Malaysia (Peninsular Malaysia, to the northSabah and Sarawak to the east) and Indonesia
to the south. Singapore is linked with Peninsular Malaysia by a 1,056-metre long causeway,
which carries a road, a railway and a water
pipeline across the Strait of Johor.

The Packaging Industry in ASEAN

1.1 Climate
The main features of Singapore climate are

increase of 2 per cent over that of the previous
y e a r .

relatively uniform temperature, high humidity
sure of the island and its close proximity to the

1.3 Economy
The Singapore economy grew by 7.2 per centEquator.

during the first quarter of 1995. This was large-

and abundant rainfall due to the maritime expo-

The average daily temperature is 26.7°C. The

ly due to slower growth in the manufacturing,mean maximum temperature of 30.8°C occurs

construction and transport and communica-in the afternoon, and the mean minimum oftion s sectors co mp ared to th e previou s quar-

23.8°C just before dawn. November to January,

ter. However, the financial an business ser-during the Northeast Monsoon, are generally

vices, and co mmerce sectors grew faster.
T h e ma n u f a c t u r i n g s e c t o r g r e w b y 7 . 3 p e r

the cooler months.
Relative humidity often exceeds 90 per centcent, down from 12 per cent a quarter ago. The

at night and in the early hours of the morning

major industries recorded mixed perfor-

shortly before sunrise. On dry afternoons, it is

ma n c e s . O u t p u t d e c l i n e d i n t h e p e t r o l e u m,usually between 60 per cent and 70 per cent.

t ra n s p o rt e q u i p me n t , a n d p a i n t s a n d p har ma-

The average daily relative humidity is 84.4 perceutical industries by continued to grow in thec e n t .

other key industries. The lower output in theRain, failing all the year round, is most abun-

petroleum and pharmaceutical industries weredant from November to January, the first half

partly due to shutdowns of plants for mainte-of the Northeast Monsoon. July, during thenance.

Southwest Monsoon, records the lowest average rainfall. Much of the rain falls in sudden
showers with rainfall of more than 50 millime-

2. Packaging Industry Status

tres a day occurring about nine times a year.
The annual rainfall is 2,359 millimetres.
Thunderstorms are frequent during the inter-

There are about 200 companies in the pack-monsoon months of April-May and October-a g i n g i n d u s t r y a n d t h e ma i n s e g me n t o f t h eNovember. The highest recorded wind speed

industry are, metal, corrugated paper/box andp l a s t i c .

during a squall is 144 kilometres an hour.

2.1 The paper packaging industry
This is a well established industry. There are

1.2 Population
The resident population (of Singapore citizens and permanent residents) at June 30, 1994

a total of approximately 60 companies that manufacturer paper, corrugated box and paper,

was estimate at 2,930,000. This represents anpaper bags and paper carton box. In the corr u g a t e d b o x t h e r e a r e 8 l a r g e ma n u f a c t u r e r s

-

8

8

-

J. Pack. Sci. Technol. Vol. 5 No. 2 (1996)

and 10 other smaller manufacturers that havewooden boxes, packaging case and crates andtheir own corrugator. Most of these companies

pallets to the industry. There is a strong push

are part of the Corrugated Box Manufacturers

recently for standardizing of the pallet size in

Association.

Singapore.

A total of more than 3 thousand employees
were employed by this industry with an out putof approximately S$600 million annually.

2.5 Glass industry
There are no glass industry in Singapore. All
the glass containers are imported.

2.2 Metal packaging industry
T h e me t a l p a c k a g in g i n d u s t r y p r o d u c e d 2

III M a l a y s i apiece cans, 3 piece cans, drums closure. There
are 12 tin plate can manufacturers with one

1. Introduction

company dominating 80% of the beverage market. One company can produce 2 piece can.

Malaysia comprises the Peninsular Malaysia,

Both thin plate and aluminium 2 piece can be

Sabah and Sarawak. Thailand is to the north of

produced in Singapore.

Peninsular Malaysia and Singapore is to the

All the raw material (both tin plate and alu-

south. The Straits of Malacca separate Suma-

minium) are imported. There are ll metal con-tra of Indonesia from the south western part oftainers and drums manufacturers with 4 major

Malaysia Peninsula. Sabah and Sarawak is con-drum manufacturers supply the market.

nected to Kalimantan of Indonesia and is sep-

2.3 Plastic packaging industry
There are more than 80 companies producing plastic sheet, plastic film, plastic bag, styrol foams, plastic bottles and containers. The
main player in the plastic industry are usuallypart of a large group of companies. Most otherplastic companies are small and medium size.
Due to a large electronic industry present in
Singapore, there is a high demand for electronic packaging. More than 30 companies aresupplying foamed shock absorbent material.

2.4 Wooden packaging industry
There are about 16 companies supplying

arated from Malaysia Peninsula by the South
China Sea.

1.1

ClimateMalaysia lies entirely in the equatorial zone.
The climate is governed by the regime of thenorth-east and south-west monsoons whichblow alternately during the course of the year.
The north-east monsoon blows from approximately mid November till March, and thes o u t h - w e s t mo n s o o n b e t w e e n M a y a n d S e p tember, the periods of change between the two
monsoons being marked by heavy rainfall. The
period of the south-west monsoon is a drier
period for the whole country, particularly forthe other states of the west coast of the Penin-- 8 9 -

The Packaging Industry in ASEAN

sula, sheltered by the land mass of Sumatra.

mented market with products ranging from

Being in the tropics the average temperatures a n i t a r y c a n s f o r f o o d i t e ms a n d o t h e r c o n -throughout the year is constantly high 26°C or
8 0 ° F .

sumer product such as aerosol and paint canswith a large variety of sizes and specifications.
The estimated usage of general line cans by

1.2 Population and economy
The total population in 1995 is estimated atthe various sector is tabulated as follows: forConfectionery a total of 400 tonnes, for Motor

19.95 million and is proposing to have a total

Oil (all sizes) a total of 3,000 tonnes, for Paint

population of 70 million in year 2095 (based ona total of 2,300 tonnes, for Edible Oil a total ofgrowth rate of 3.2). The last few years have

1,000 tonnes and for Aerosol a total of 1,000

seen Malaysian's companies taking moret o n n e s .

aggressive strategies to market their product.

The estimated demand for soft drinks and

The GDP growth of the last years has been 81 0 % .

beer in 1993 is soft drinks 506 million cans, andbeer 360 million cans.
The steel drums in the Malaysia are mainly

2.Packaging Industry Status

for packing the following products; including
latex, edible Oil, oleochemicals, lubrication Oil,The main packaging material used inpaint, agro-Chemicals, flavours and fragrances,

Malaysia are paper/paper board, metal, glass,and chemicals.

plastics and wood. The packaging industries
can be divided into:

2 . 3 G l a s s
The Malaysia glass container industry main-

2.1 The corrugated fibreboard industry
This is a well established industry. There arely cater for the beer, soft drinks, pharmaceutical and chemical goods. The glass bottle has

about 46 corrugated box plants in Peninsularfour main types of products; this include

Malaysia. The total capacity of the plants is esti-

returnable glass containers, single trip bottle,

mated to be in the range of 833,000 metric tons

jars (wide mouth) and others.

but production is approximately 321,000 metrictonnes.

An estimated of about 60-70% of the product i o n i s f o r t h e d o me s t i c ma r k e t w h e r e a s th eremaining 30-40% is being exported mainly to
East and West Asia.

2.2 Metal packaging industry
The metal packaging industries can be subdivided into the general line cans, the bever-

2.4 Plastics
In Malaysia, about 60-70% of the plastic man-age cans and the steel drums.
The general line cans market is a very frag-ufacturers are involves in the packaging Indus-- 9 0 -

J. Pack. Sci. Technol. Vol. 5 No. 2 (1996)

try. The packaging comes in two forms:

population comprises predominantly the Thaii) Flexible includes bags, files, sheets andpeople with about 6.7 million ethnic Chinese.

laminated plastics,

Other ethnic minorities include the Malays,ii) Rigid includes bottles, boxes, crates andd r u m s .

Laotians, Vietnamese, Kh mers and hilltribes
p e o p l e .

IV Thailand

1.3 Economic Performance
In 1992, Thailand's economy grew 7.2 per-

1. Introduction

cent, marginally lower than the growth rate of
7.9 per cent in 1992. Thailand's gross domes-

Situated in South-East Asia, Thailand has atic product (GDP) reached US$107.3 billion,

total land area of some 514,000 square kilometres, It is bordered to the west and north bywith a per capita GDP of US$1,800 in 1992.

Myanmar, to the north-east by Laos and to theThailand's inflation rate was 4.1 per cent whiles o u t h - e a s t b y C a mb o d i a . T h a i l a n d e x t e n d s

its unemployment rate was around 3 per centsouthward, along the isthmus of Kra, to thei n

1 9 9 2 .

Malay Peninsula, where it borders Malaysia.

Several factors has supported Thailand's

Thailand extends 1,620 kilometres from northstrong economic growth in 1992. These factors

to sourh and 775 kilometres at its widest from

included the increase in private consumption

east to west. It has a coastline of 2,400 kilo-arising from personal income tax cuts, higher

metres. The isthmus, shared with Myanmar,

export, and growth in investment especially ingives Thailand a short coastline on the Indiant h e c o n s u me r g o o d s , e l e c t r o n i c s a n d p e t r o -Ocean, and the country also has a long Pacificchemicals industries, and government spending on infrastructure.

coastline on the Gulf of Thailand.

2. Packaging Industry Status
1.1 Climate
Thailand's climate is generally tropical with

Economic developments in Thailand has

a high degree of humidity. There are three sea-s t i mu l a t e d t h e d e ma n d f o r p a c k a g i n g i n t h esons; hot (March to May), rainy June to Octo-

past few years. Gross domestic product (GDP)ber) and cool (November to February), The

has shown double-digit growth rates between

mean temperature is around 30°C (86°F), vary-

1985 and 1991. From 1992 to recent years, theing from 23.7°C to 32.5°C (from 75°F to 91°F).

growth rate is at 7 to 8 percent and this growthrate is expected for the next 3 to 5 years. The

1.2 Population
The population of Thailand was estimated ataround 59.4 million people in 1992. Thailand's

packaging industry has been growing in importance in Thailand. With more foods exported,- 9 1 -

The Packaging Industry in ASEAN

the need for better design to compete in the

cardboard boxes. 3 pulp mills produce shortinternational market, the growing expectation

fibre pulp.

of consumer with more purchasing power,changing lifestyles, tastes and preference has

2.2 Metal packaging manufacturer

all resulted in a higher demand for more con-

The main product of metal packaging indus-

venient and sophisticated packaging. The total

try is can. Both 2 piece and 3 piece can are

number of packaging companies is about 1,600.

ma n u f a c t u r e d i n t h e i n d u s t r y . O t h e r me t a l

The majority of these companies are small andpackaging product include drums, tubes,

medium size. The four main segments in thea e r o s o l s , ca p s an d f oi l .

packaging industry are the paper, the plastic,
the

metal

and

the

glass

industry.

There are two companies that make tin plate,Siam Tin plate Co. Ltd. and Thai Tin plate
Manufacturing Co. Ltd. Special alloys and alu-

2.1 The paper industry

minum are imported.

The paper industry companies of about 300

There are about 140 metal packaging manu-

companies. About 70 percent can be consid-

facturers. Approximately 13 are large can man-ered as small scale manufacturer. The majori-

ufacturers. Two manufacturer currently makety of the manufacturers (about 160) produce

aluminum beverage can. About 8 larger pro-corrugated boxes. The number of cardboard

ducer of canned food make their own cans.

box manufacturer is approximately 120. Largeusers of multi-layer bags such as the cement
industry and feed mills usually have in-house

2.3 Glass packaging manufacturer
90 percent of the glass packaging are bottles.

production facilities. The single layer-bag is

The remain 10 percent are mainly for jars.

ma i n l y u s e d i n r e t a i l s t o r e s .

Most of the glass manufactured are for the

There are about 12 big manufacturers of cor-local market.

rugated boxes that have corrugator. In 1992,

Glass packaging manufacturing is the oldest

they produced about 660 thousand tons of cor-of the four packaging manufacturing segments.

rugated board and 560 thousand tons was used

There are 5 major glass bottle manufacturers

for their own production and the remain arewith a total capacity of around 750 thousand
tons a year.

sold to other manufacturers. There are about
10 large and medium size cardboard box manufacturers. Their production volume is usuallysmaller than the large corrugated box manuf a c t u r e r .

2.4 The plastic industry
The plastic industry provide a wide range of
products. In the flexible form, products include

Raw material is supplied by 41 paper mills.

plastic film, bags and woven sacks. In the more

About 4 of these mills supply the paper for

rigid form products include foam containers,- 9 2 -

J. Pack. Sci. Technol. Vol. 5 No. 2 (1996)

plastic bottles and cups.

tres, while total land and sea area is about 9.8

Plastic packaging manufacturing is themillion square kilometres.

youngest and most rapidly expanding industri-Indonesia has a tropical climate, which isal segment. The current number of plastic

greatly influenced by mountains and the sea.

packaging manufacturers exceeds 1300. About

The lowlands have high humidity, moderately

70 percent are small scale manufacturers, withhigh temperatures ranging from 20 to 30°C,

less than 500 tons of production capacity per

feeble sands a few kilometres from the sea, andyear. The 28 larger manufacturers of bags pro-rainfall averaging more that 1,000 million
metres a year.

duces bags and envelopes for export (around
65 thousand tones a year). The 12 styrofoam
tons a year. Many plastic packaging manufac-

1.2 Population
Indonesian has a population of about 184 mil-turers produce plastic products for other pur-lion people in 1992, making in the fifth mostposes as well. Manufacturers of styrofoam also

populated country in the world.

manufacturers have a total capacity of 4,500

make car parts and other insulation material.

1.3 Economy
The manufacturing sector is playing an
increasingly importan t role in the Indonesia

Manufacturers of shopping bags also produce
freezer bags and bags for garbage can andsome bottle manufacturers also make plastic
plates and toys.

economy. It accounted for 19.5 per cent of the
GDP in 1990 as compared to 12 per cent inV

1982. The industrialisation strategy adopted byIndonesia

the Indonesia government in the early stages

1. Introductionof development was directed towards importsubstitution and employment creation. Tariffs

Indonesia is the largest country in Southeast

and non-tariff barriers were erected to protect

Asia, both in population and in area. It is also

the domestic industries. This has resulted in a

the largest archipelago in the world, consisting"high cost economy" and lack of internationalof more than 13,000 islands stretching in acompetitiveness suffered by much of Indone-r o u g h c r e s c e n t f o r 5 , 5 0 0 k i l o me t r e s . T h e s e

sia's manufacturing industry.

islands form a crossroad between two ocean -Indonesia's manufacturing sector produced a

the Pacific and Indian Ocean, and a bridge

vast range of products. Most consumer goods

between two continents - Asia and Australia.

such as processed foods and beverages, tobacco products, textiles and garments, motor vehi-

1.1 Climate
The total land area of the Republic of Indone-cle components and assemblies and electricalappliances are produced by the private sector,

sia is approximately 1.9 million square kilome-- 9 3 -

Tlte Packaging Industry in ASEAN

often in joint ventures with foreign companies.

nates, films and bags,ii) Rigid packaging like bottles, drums and2. Packaging Industry Status

jerry

cans,

iii) Woven bags.
Packaging Industry in Indonesia has grown

2.1.1 The flexible packaging industry

rapidly in recent years. The rap id g ro wth in

The development of flexible packaging indus-

agriculture and industry is one important point

try in Indonesia began in 1977. Currently, therethat cause the rapid growth in packaging indus-

are 43 companies in the flexible packaging. Outt r y . F a s t ex p an s i o n o f s u p e r ma r k e t s , d ep a rt -of the 43 companies, 2 companies are foreign

me n t a l s t o re s a n d s h o p p i n g ma l l s i s q u i c k l yinvestment, 9 companies are domestic invest-

changing the traditional and economic growth,ment and 32 companies are Nonfacility or local

the demand for a better living standards has

investment.

also brought an increasing demand for pack-For some specialized flexible packaging, thea g i n g .

Indonesian still needs to import some finished

There are approximately 250 significant pack-products and raw material to meet it's needs.

aging manufacturers and about 500 smaller
ones in Indonesia. Except for a few food com-

2 .1 .2 R ig id pa ckag ing
The annual capacity for rigid packaging ispanies which have their own integrated food

90,000 tons, and there are four major produc-

packaging, generally the packaging industry is

ers of rigid plastic packaging.

separated from the food industry. In addition,

2.1.3 Woven bags industry

mo st of the food packaging industry are no t

There are approximately 66 manufacturers

specialized in food packaging, they also makefor woven bags with an annual production of
105,000 tons.

other kind of packaging. The packaging industry in Indonesia can be divided into five kinds
packaging industry, the paper board packaging

2.2 The paper and paper board industry
Currently there are 70 companies producing

industry, glass packaging industry, metal pack-corrugated carton box with a total licensed

aging industry and jute packaging industry.

capacity of 596,965 tons annually. Out of the 70

of packaging industries, namely the plastic

companies, 3 companies are foreign invest-

2.1 The plastic packaging industry
Ab out 125 companies are producing plastic

ment, 26 companies are domestic investment

packaging with a total annual production capac-

Box kraft liner and medium paper which are

ity of 280,000 tons. This industry can be sub-used as the raw material for the corrugatedboxes is 5-7%.

and 41 companies are local investment.

divided into three categories:i)The flexible packaging industry likelami-

- 9 4 -

/ Pack. Sci. Technol. Vol. 5 No. 2 (1996)

2.3 The glass packaging industry
The main products of glass packaging whichward to 241 kilometres south of Taiwan andsouthward to 14.4 kilometre off Borneo.

are consumed by food packaging industry are

1.1 Climate
The country enjoys a year-round tropical climate generally characterise by warm days andbottles. In the last three years, it seems that
there is no growth in the bottle industry. The
total production is 145,000 tons/year. There

cooler evenings. The climate year is divided

are 12 companies producing glass bottle. Not

into three predominant seasons-rainy from Julymuch glass bottles are i mported.

to October, cool and dry from November to

In terms of market share, beverages share

February, and hot and dry from March to May.

65% and other food products such as edible oil,T h e a v e r a g e t e mp e r a t u r e i s 2 7 ° C , w i t h t h efruits, vegetables share 15% of the market.

average humidity at 77 per cent.
The northern part of the archipelago is in the

2.4 The steel packaging industry
The total annual capacity of steel packaging

direct path of tropical storms and typhoons,product is about 150,000 tons and there arewhich are prevalent during the rainy season.

approximately 50 companies in this industry.

The southern part has a milder climate and is

There piece cans represent the major output ofseldom affected by tropical storms.

the steel packaging industry (80% of the vol-The average rainfall is 305 centimetres.

ume).

1.2 Population
The Philippines has an estimated population

For 2 piece beverage cans, the total usage ofaluminum is estimated at 13,300 tons. There isof 64.3 million in 1992, primarily of Indo-Malay,

a trend for more aluminium to be used for var-

Chinese and Spanish descent. The annual pop-

i o u s f o o d p ro d u c t s s u c h a s b ev e r a g e s , s e a foods, food trays etc.

ulation growth rate is about 3 per cent.
The population density is 210 inhabitants per
square kilometre, with 13 per cent of the total

VI Philippines

population living within the Metro Manila area.

1. Introduction

About 57 per cent of the population live in rural
areas.

The Philippines is an archipelago of approx-

by the South China Sea in the west, the Pacif-

1.3 Economy
The Philippines economy is organised basically arou nd light indu stry and ag ricultu re,ic Ocean is the east, the Sulu and Celebes Seas

with the p rocessing o f agricultural productsin the south, and the Bashi Channel in thenorth. Collectively, the islands stretch north-accounting for the largest share of the manu-

imately 7,107 islands scattered over an area of
about 300,000 square kilometres. It is bounded- 9 5 -

The Packaging Industry in ASEAN

facturing sector.

The Philippines is mainly an agricultural

The Philippines economy has a number ofcountry so its primary products are the farmproblems that resulted from mismanagement

product. The packaging industry can be divid-of the country's resources in the early 1980s.

ed into four main sectors, they are the

However, the present government under Pres-paper/paper board having approximately 45%

ident Fiel V Ramos is geared towards securingof the packaging market, metal packaging

economic recovery in the short term and sus-

about 20%, glass about 18%, plastic about 15%

tainable growth in the long run. A key strate-

and other packaging such as bamboo basket,

gy is to encourage investments and to makewooden crates... etc, make up the remaining
2 % .

Philippines export products more competitivein the world market. Agriculture, including
industries, has also been given more attention.

2.1 The paper and paper board industry
Raw material of the paper and paper board

The Philippines' real Gross National Productmanufacturer are largely locally available. Only

(GNP) registered a marginal growth of only

very few manufacturers choose to import their

0.04 per cent in 1991. For 1992, the GNP was

raw material for higher quality paper.

employment-generating domestic and export

officially estimated to have grown by 0.6 per

2.2 The metal industry
Tin can are more widely used in Philippines

cent. However, the country's real Gross
Domestic Product (GDP-which excludes

than aluminium can. Raw materials of metal-

income from abroad) registered negative

based packaging come only from one source.

growth of -0.7 per cent and -0.4 per cent in

Importation of tin plates is restricted, however,1991 and 1992 respectively. The poor perfor-

companies whose products are to be exported

mance of the economy was due to fiscal tight-

are allowed to import certain amount of tin
p l a t e .

ening by the government, drought problems
which hit the agricultural sector and serous
deterioration in the power shortfall in the man-

2.3 The glass industry
Glass bottles and jars are still widely used.

ufacturing sector.
After two years of economic stagnation, some

The largest supplier of glass containers ineconomic analysts expect the Philippines econ-

Philippines is San Miguel Corporation which is

omy to pick up by the end of 1993 with growth

also the largest packaging manufactures in theof around 1 per cent in 1993. For 1994, thecountry with also its own packaging manufac-

economy is expected to grow by around 3 perturing capability in corrugated, plastic andcent (data has yet been published).

metal packaging.

2. Packaging Industry Status

-

9

6

-

J. Pack. Sci. Technol. Vol. 5 No. 2 (1996)

Table 2 Land size of countries in ASEAN

2.4 The plastic industry
Plastic packaging has been growing in theCountry

Land size(sq/km)Size ofcountry
compared to
SI NGAPO RE

P h i l i p p i n e s . P o l y e t h y l e n e l e a d s a mo n g t h eother plastic packaging materials in import.

SINGAPORE

633

1

Other major plastic resins imported include

MALAYSIA

330,434522

polypropylene, polystyrene, polycarbonate and

INDONESIA

1,919,443

3,032

THAILAND

514,000

812

PHI LIPPINES

300,000

474

JAPAN

377,815

597

some

PVC.

Domestic production of synthetic resins has
mainly been a secondary source of raw materials for the packaging and plastic industry.

Table 3 Number of packaging companies in ASEAN

VII Trend of Packaging in ASEANCountry

Number of
packagingcompanies

ranging economic profiles. In the past few

SINGAPORE

200+

years, the econo my of the ASEAN has all

MALAYSIA<500>

grown at a very rapid speed. This growth has

INDONESIA

750+

both stimulated the growth of the packaging

THAILAND

1600+

industry as well as created certain challenges

PHILIPPINES<600>

The region has diverse cultures and wide

for the industry. A summary of tables showing
comparision between the ASEAN countries are
Table 4 Number of glass companies in ASEAN

attached (Table 2 - Table 7).
The consumer profile of the ASEAN coun-

Country

Number of
glasscompanies

of geographical boarders have created remark-SIN GAPO RE

0able market optimism in all economic classes.

MALAYSIA

3+

The consumers now demand quality and vari-

IN DO NESIA

12

e t y, p roduct sa fet y, h yg i en e an d n u t r itio n .

THAILAND

5

Three main factors will continue to influence

PH ILI PPINES

7+

tries has changed drastically over the years.
Increasing disposable income and opening up

the development trend on packaging in
A S E A N .
Table 5 Number of plastic packaging companies in ASEAN

1 .

C o s t- 9 7 -Country

Number of plastic
packagingcompanies

SIN GAPO RE

80+

MALAYSIA－IND ONESIA125

THAILAND

1 300+PHILI PPINES

7+ (Flexible)

The Packaging Industry in ASEAN

Table 6 Number of metal packaging companies in ASEAN

3. Environmental FriendlyCountry

Number of metal
packagingcompanies

SINGAPO RE

12

MALAYSIA

11+

INDONESIA50

THAILAND

13+

PHILIPPINES

17+

More and more consumers are concernedwith the possible problem of environment
waste. Although currently not the main factor
affecting development of packaging trend
ASEAN, it is definitely a factory that cannot beignored in tomorrow's packages in this region.

VIII Specific Packaging Trend

Table 7 Number of corrugated / paper packaging
companies in ASEAN

Glass and metal packaging will grow but at

Number ofcorrugated /paper packaging
companies

a slower rate. Plastic packaging showed a up

SINGAPO RE

60

metal packaging. Paper packaging will contin-

MALAYSIA

46+ (Corrugated box
and carton)ue to grow in their localized region. Recently,

INDONESIA

70 (Corrugated box
and carton)material for paper, it had hamper the growth

THAILAND300

PHILIPPINES－Country

trend and will continue to challenge glass anddue to a continued increase in the price of raw
of certain paper industry.
More and more plastic film and container are
seen in the market and the growth of plastic
continue to be good. Pressure will be on reduc-In spite of increased purchasing power, cost

ing the wastage of packaging materials. Moreremains the single important factor for selec-

recycling and reused packaging will be expect-tion. Consumers demand quality and appeal in

ed. Pressure will also be on packaging manu-

packaging, however, if the packaging cost isfactu rers to reduce the amount of packag ing
material used for packaging.

too high compared to other available alternative, the consumer usually is not willing to pay
for the extra cost.

2. Packaging Appeal
With the improved purchasing power, morechoices available, the new distribution networks and international co mp et itions, consumers are becoming more discriminating inselection of products. Packaging design andlayout that can appeal to the consumer will continue to win in the competitive market.

- 9 8 -

R e f e r e n c e1) Various country paper prepared by countries
participants on packaging industries status of
their own countries
2) Investment opportunities study for packaging
manufacturing in Thailand
3) Singapo re fact and pictures
4) Economic Survey-Trade and Development
Board, Singapore( R e c eiv ed 5 D ec e mb e r 1 9 9 5 )