This article first appeared in City & Country, The Edge Malaysia Weekly on July 4, 2022 - July 10, 2022

Hairline cracks, powdery finish, blistering, peeling paint, mould, hollowness, falling tiles and water seepage are some of the common issues in the construction industry. 

In a bid to address these problems, Nippon Paint has repositioned itself as a total coating and construction solutions (TCCS) provider, offering a comprehensive range of innovative solutions from bare concrete surfaces to the finishing.

As part of its business expansion, Nippon Paint (M) Sdn Bhd (NPM) in May 2020 acquired sealant, adhesive, filler and lubricant products provider Selleys, a brand that originates from Australia, to expand into the home improvement segment for sealants, adhesives and fillers (SAF).

In April 2021, NPM announced its acquisition of a majority stake in Vital Technical Sdn Bhd (V-Tech) to further strengthen its market leadership in the SAF segment.

The business expansion did not stop there. In February 2022, NPM took over CMI Construction Material Industry Sdn Bhd (CMI) and CMI Marketing Sdn Bhd (CMIC) to venture into the segment of cementitious dry-mixed pre-packed additives, skim coat, plasters, tile adhesives, waterproofing and technical mortars. 

“2021 was a year full of challenges due to the pandemic. Before we fully embarked on our journey in TCCS, Nippon Paint dominated the Malaysian paints and coatings market in both the major sub-segments of the industry. 

“We have nearly 45% of the market share on volume in the architectural sub-segment and about 39% of the market share on volume in the industrial sub-segment in the country,” Nippon Paint Malaysia Group managing director Yaw Seng Heng tells City & Country in an email interview.

Today, Nippon Paint is the only company in the region that offers TCCS for the building and construction industry. 

“We now have the competitive edge to extend a total compatible system for coating and construction solutions comprising plaster/render, skim coat, tile adhesive, waterproofing, flooring, protective and architectural coatings that can deliver a total compatible system solution to every quality and beautiful finishing from bare to finish.”

Yaw adds that expansion into TCCS is about more than just contributing to the company’s bottom line. It also fulfils the company’s commitment to providing a comprehensive range of services and products that give customers peace of mind.

“We are confident that TCCS is set to enhance the professionalism and workmanship of the local building and construction industry and also give homeowners and contractors the assurance of high quality and beautiful finishing. More importantly, TCCS will translate to time and cost-savings as well as effective manpower utilisation as construction is expedited with improved efficiency,” he shares.

Expanding a business is more than just acquiring new brands and widening product ranges, it is also about setting a new business direction and rebuilding a brand image.

“Communication is important and hence, we need to have constant communication with stakeholders to avoid any misinformation that can put us at risk. Next, we need to change our business model to meet new needs, if necessary,” Yaw says.

He adds that expanding new businesses comes with its own set of challenges, especially during a pandemic. The shrinking economy is throwing up new uncertainties for businesses across the globe. However, as a business owner, NPM continues to navigate adversity to ensure success in its new business direction.

“We believe that the Covid-19 pandemic has changed the way we operate our businesses. As the construction industry struggled during the pandemic, we felt the urgency to make some changes to our business model. The changes that we have made not only benefit our business, but also our nation’s economy,” he says. 

When asked about the biggest challenge for Malaysia’s paint and coatings producers, Yaw says it will be the rising cost of raw materials.

“This increase in price has created a domino effect where the production costs have risen significantly. When paint and coatings manufacturers are forced to increase product prices, it suppresses demand for these paint and coating products in some of the market segments.

“However, we believe that every challenge is an opportunity. Nippon Paint continues to push innovation boundaries with TCCS by offering high quality, total compatibility, beautiful finishing and protection for every layer from floor to roof. 

“Other than that, we believe that we must embrace the new normal and adapt to the changing market situation. Hence, we are taking this opportunity to relaunch our VirusGuard product with a new and improved formula that has been scientifically proven to be 99.9% effective against the coronavirus,” Yaw notes.

Nippon Paint VirusGuard is formulated with silver ion technology, one of the world’s oldest natural antimicrobials. It can inhibit growth and destroy microorganisms such as viruses, bacteria, mould and fungi to ensure the walls are protected and safe to touch. It is also worth noting that silver ion technology has been scientifically proven to resist the growth of up to 99% of harmful viruses and bacteria on the painted surface.

Besides, NPM has also adopted the industrialised building system and 3D printing technology, especially for its dry-mixed and coating products, to provide effective solutions for clients to lower overall construction costs and increase productivity during the pandemic.

“With the full-scale reopening of the economy as we move towards endemicity, we expect to see an increase in demand from rising construction activities post-pandemic. As our local construction industry is showing signs of good recovery in the National Recovery Phase, we believe that TCCS will help contractors speed up their project delivery, which will lead to the satisfaction of developers and homeowners as well as give peace of mind to the construction stakeholders,” Yaw notes.

As for the industry outlook, Yaw believes that the technology used in today’s construction methods will not only reduce ever-rising construction and labour costs, but also build homes of higher quality for the masses, which is in line with the company’s vision to create a better Malaysia together.

“We also wish to explore more opportunities with other businesses. This is very important not only for NPM, but also for our business partners, employees and customers. Our vision is to help Malaysia be a better nation, especially in the construction industry. We believe that it will give positive revenue and profit which will benefit the nation’s GDP (gross domestic product) growth,” Yaw concludes.

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