Asia-Pacific Polymer Banknote Substrate Market and Forecast to 2031 - Analysis by Geography (Australia, New Zealand, Singapore, Malaysia, Philippines, Vietnam, Thailand, Cambodia, Brunei, Papua New Guinea)

Asia-Pacific Polymer Banknote Substrate Market Size

The Asia-Pacific polymer banknote substrate market represents one of the most mature and rapidly evolving regional markets for polymer currency, supported by strong central bank initiatives, technological advancement in banknote security, and the widespread adoption of polymer substrates across several economies. The region has played a pioneering role in the transition from paper to polymer banknotes, with Australia becoming the first country in the world to introduce a full polymer banknote series.

As of 2026, increasing currency circulation, rising investment in advanced security features, and the need for longer-lasting, sustainable banknotes continue to drive substrate demand, making Asia-Pacific a critical growth hub for the global polymer banknote substrate industry. The Asia-Pacific polymer banknote substrate market is projected to reach USD 100 million by 2031, expanding at a CAGR of 6% over the forecast period.

Key Drivers Shaping the Asia-Pacific Polymer Banknote Substrate Market

Central Bank Currency Modernisation Supports Continued Polymer Adoption - In March 2025, the Reserve Bank of Australia (RBA) unveiled the design theme for the next AUD 5 banknote, “Connection to Country,” recognising the enduring connection of Aboriginal and Torres Strait Islander peoples to Australia’s land, waters and sky. The redesigned banknote will not feature King Charles III and will retain the image of Parliament House on its reverse side, reflecting the region’s ongoing investment in currency modernisation.

Rising Currency Circulation Sustains Substrate Demand - The total value of Australian banknotes in circulation increased by 3.0% during FY2025, reaching more than AUD 100 billion by mid-2025. Malaysia’s currency in circulation followed a similar trajectory, rising from MYR 170.7 billion in 2024 to MYR 177.7 billion in 2025, a 4.12% year on year increase, reflecting sustained reliance on cash despite growing digital payment adoption.

Durability and Counterfeit Resistance Continue to Drive Substrate Adoption - New Zealand has used 100% polymer banknotes since 1999, replacing cotton paper notes to improve durability, cleanliness and counterfeit resistance. Malaysia’s counterfeit banknote rate declined from 1.7 parts per million (ppm) in 2024 to 1.2 ppm in 2025, reinforcing the security case for polymer substrates across the region.

Currency Processing Infrastructure Is Modernising Alongside Substrate Adoption - In 2025, approximately 86% of the 1.7 billion banknotes processed by Bank Negara Malaysia (BNM) were handled through its Automated Cash Centre, compared with 69% in 2024, reflecting continued investment in efficient, secure cash-handling infrastructure that supports polymer banknote circulation.

Commemorative Issuance Is Expanding Polymer Substrate Use - In 2025, Papua New Guinea introduced a commemorative PGK 50 polymer banknote to mark 50 years of independence (1975 to 2025), continuing a regional pattern of using polymer substrates for high-visibility commemorative issues alongside standard circulation notes.

Counterfeit Pressure in Partially Polymer Markets Reinforces the Case for Substrate Upgrades - The Bangko Sentral ng Pilipinas (BSP) detected 69,922 counterfeit paper banknotes in 2024, an 18.4% increase from 59,074 in 2023, underscoring the security rationale for continued and expanded polymer substrate adoption in partially polymer markets such as the Philippines.

Asia-Pacific Polymer Banknote Substrate Industry Insights

Australia Polymer Banknote Substrate Market Overview

Australia holds the most established position in the Asia-Pacific polymer banknote substrate market, having become the first country in the world to introduce a full polymer banknote series. The country’s polymer banknote programme spans introduction and production history, denomination-wise issuance, distribution, circulation, counterfeit monitoring, and substrate and commemorative security features.

Australia Polymer Banknote Market Developments

• In March 2025, the Reserve Bank of Australia (RBA) unveiled the design theme for the next AUD 5 banknote, "Connection to Country," recognising the enduring connection of Aboriginal and Torres Strait Islander peoples to Australia's land, waters, and sky. The redesigned banknote will not feature King Charles III and will retain the image of Parliament House on its reverse side.

• Meanwhile, the total value of Australian banknotes in circulation increased by 3.0% during FY 2025, reaching more than AUD 100 billion by mid-2025.

Currency in Circulation (CIC) in Malaysia

Malaysia's currency in circulation (CIC) continued to expand in 2025, reflecting sustained economic activity and steady demand for cash.

• 2024: MYR 170.7 billion

• 2025: MYR 177.7 billion (4.12% year-on-year growth)

Although digital payment adoption continues to rise, cash remains an important medium for retail transactions and a reliable store of value. To support an efficient and secure cash ecosystem, Bank Negara Malaysia (BNM) continues to strengthen nationwide currency processing, distribution, and recirculation initiatives, ensuring the availability and quality of banknotes in circulation.

Thailand Banknote Issuance Framework and Current Currency Series

In Thailand, the Bank of Thailand (BOT) holds the exclusive authority to design, produce, issue, circulate, and manage Thai banknotes.

• The Banknote Management Group (BMG) is a semi-autonomous unit within the Bank of Thailand responsible for banknote operations from production to destruction, with 3 departments: Note Printing Works, Banknote Operation Department, and Banknote Strategy and Corporate Affairs Department.

• As of 2026, Thailand continues to circulate the 17th series of Thai banknotes is in circulation, which was launched in 2018. This series prominently features King Vajiralongkorn on the obverse side and highlights contributions from the Chakri dynasty on the reverse. The denominations currently in circulation include THB 20, THB 50, THB 100, THB 500, and THB 1,000.

New Zealand - Counterfeit Detection Trends

Increased Public Awareness and Retailer Training - 

• The Reserve Bank of New Zealand continues to work closely with retailers, banks, cash-in-transit companies and law enforcement agencies to improve counterfeit detection. Through the nationwide “Look, Feel, Tilt” campaign and counterfeit detection training, businesses are encouraged to verify banknote security features before accepting cash.

Declining Familiarity with Cash - 

• New Zealand remains a low-counterfeiting country by international standards. Although the counterfeit rate increased to 14.34 parts per million (ppm), after a peak of 17.4 ppm, in FY2024, this is still relatively low globally. Around 80% of counterfeit detections involved NZD 50 banknotes, reflecting the effectiveness of the security features on the Series 7 polymer banknotes.

• As of 2026, counterfeit polymer banknotes remain relatively rare in New Zealand. While counterfeit activity increased during FY2024 and isolated counterfeit NZD 50 and NZD 100 notes continue to be reported, the Reserve Bank has not published newer national counterfeit-rate statistics. Ongoing public education, retailer training and the advanced security features of Series 7 polymer banknotes continue to support a low counterfeit incidence by international standards.

Singapore - Currency Policy Cycle

• Since January 2024, the Monetary Authority of Singapore (MAS) has adopted a quarterly monetary policy review cycle, reviewed every January, April, July and October, a shift relevant to currency issuance and management planning across the city-state's financial system.

Non-Polymer Country Spotlight - China's CNY 20 Commemorative Note

• China sits within this report's Non-Polymer Banknote Countries chapter, but its central bank has still explored polymer substrates on a limited, commemorative basis, which is worth noting separately rather than folding into the Fully or Partially Polymer country groupings above.

• China's central bank introduced a CNY 20 commemorative banknote to mark the Year of the Dragon. Printed on polymer, this note was officially released on 15 December 2023, the first in a 12-year series dedicated to the Chinese zodiac. Across the series, a total of 100 million notes will be issued at face value, with each individual allowed to obtain up to 20 notes. The design incorporates vibrant shades of orange, yellow, green, red and black; the front, in vertical format, displays Chinese text, the national emblem of the People's Republic of China, a dragon, and the denomination emphasised with green SPARK Optical technology. Notably, the note has no security thread or watermark and was manufactured by China Banknote Printing and Minting, measuring 70 by 145 millimetres.

Strong Growth Outlook for the Asia-Pacific Polymer Banknote Substrate Market

The Asia-Pacific polymer banknote substrate market is projected to reach USD 100 million by 2031, expanding at a CAGR of 6% over the forecast period. The region is expected to remain the global leader in polymer banknote adoption, with Australia, New Zealand, Brunei, Papua New Guinea and Vietnam already circulating polymer banknotes across nearly all denominations, while Malaysia, Singapore, Thailand, the Philippines and Cambodia continue to expand polymer substrate use in selected denominations and commemorative issues.

Market growth is supported by sustained increases in currency demand across the region. Australia’s banknotes in circulation reached AUD 103.8 billion in FY2025, while Malaysia’s currency in circulation rose to MYR 177.7 billion in 2025, reflecting continued reliance on cash despite rapid digital payment adoption. Rising cash circulation, periodic replacement of worn banknotes, and increasing issuance of high-security currency are expected to sustain demand for polymer substrates through the forecast period.

Scope of the Study for Asia-Pacific Polymer Banknote Substrate Market

Makreo Research has published a comprehensive report titled “Asia-Pacific Polymer Banknote Substrate Market Size and Forecast to 2031, Analysis of Polymer Banknote Adoption Trends by Country.” The study provides an in-depth assessment of the polymer banknote substrate market across the Asia-Pacific region, examining historical market performance, polymer banknote adoption, currency circulation, substrate demand, security technologies and future market opportunities. It evaluates the transition toward polymer banknotes across major Asia-Pacific economies and assesses the factors influencing substrate demand, technological innovation, central bank initiatives and currency management practices.

Market Overview and Regional Assessment

The study provides a comprehensive analysis of the Asia-Pacific polymer banknote substrate market, covering historical market developments, the current market landscape and market forecasts through 2031. It evaluates regional adoption patterns of polymer banknotes, market size, substrate demand, pricing trends and the role of central banks and currency issuing authorities in driving the transition from paper to polymer substrates. The report also examines the influence of economic growth, currency modernisation programmes and technological advancement on market expansion.

Polymer Banknote Production, Circulation and Security Feature Analysis

A dedicated section analyses polymer banknote production, issuance and circulation across the Asia-Pacific region, assessing their impact on substrate demand. The report examines denomination-wise circulation trends, polymer substrate characteristics, substrate pricing, currency lifecycle and developments in banknote manufacturing technology. It also provides detailed insight into banknote security features, counterfeit prevention technologies, transparent windows, tactile features and other innovations enhancing currency durability and security.

Country-Level Polymer Banknote Market Analysis

The report provides a detailed country-wise assessment of Australia, New Zealand, Brunei, Malaysia, Papua New Guinea, Singapore, Thailand, the Philippines, Cambodia and Vietnam. For each country, the study evaluates polymer banknote adoption, denominations in circulation, substrate usage, central bank policy, currency issuance practice, circulation patterns and recent developments affecting polymer banknote demand. It further examines country-specific opportunities, implementation progress and factors supporting continued adoption of polymer substrates.

Asia-Pacific Polymer Banknote Substrate Market Future Outlook

The report concludes with the Asia-Pacific polymer banknote substrate market forecast through 2031, highlighting future adoption trends, substrate demand outlook, pricing expectations, technological advancement in banknote security and emerging growth opportunities across the region. It also assesses the evolving role of central banks, advancement in polymer substrate manufacturing and the increasing focus on durable, secure and cost-effective currency solutions expected to shape the market over the forecast period.

Geography Assessed