Kuala lumpur: Deputy Minister of Investment, Trade and Industry Sim Tze Tzin emphasized the importance of collaboration within Asia's textile industry, highlighting the region's dominance over 54.1 percent of the global textile market. He noted that nearly 70 percent of the world's textile and clothing production takes place in Asia, establishing it as a central hub for the industry.
According to BERNAMA News Agency, Sim pointed out that competition among Asian countries is leading to profit pressure and an imbalance between the overproduction of standard products and a shortage of high-quality, specialized materials that comply with technical and environmental, social and governance (ESG) standards. "Asia comprises many countries and they compete with each other making this industry very unprofitable, hence it is important for us to collaborate," Sim stated. He advocated for a collaborative model similar to Europe's Airbus in the aircraft industry, suggesting that large-scale industrial collaboration could be a viable solution.
Sim made these remarks following his attendance at the 15th Asian Chemical Fibre Industries Federation (ACFIF) Conference 2026, which was also attended by Entrepreneur and Cooperatives Development Minister Steven Sim. The conference, spanning three days and commencing yesterday, brought together over 200 industry leaders from eight countries: China, Indonesia, India, Japan, South Korea, Pakistan, Taiwan, and Thailand.
He further emphasized the need for the chemical fibre and textile industry to advance along a higher value chain by developing functional textiles, environmentally friendly materials, and products that are higher in quality and suitable for climate change. This progression, he noted, demands a focus on research and development and closer collaboration between industry and academia to produce materials that meet market demands and ESG standards.
Sim stressed that ESG compliance is crucial for accessing developed markets, including Europe, which imposes strict requirements on supply chains and manufacturing materials. He also highlighted the impact of current global geopolitical challenges on international supply chains, mentioning rising shipping costs, insurance, and logistical uncertainties.
Malaysia, Sim assured, is prepared to act as a strategic partner in building a more resilient regional supply chain, leveraging the country's political stability, trade, and manufacturing strengths. He called for collaboration that includes not only production but also logistics, warehousing, standards compliance, and digital traceability systems to address global supply chain disruptions.