Advertisement Header Ad
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion

    Industry Announcements for Week of December 1

    News from Dynamic Lifecycle Innovations, Precision E-Cycle

    News from Northeast Recycling Council, Plastipak and more

    News from Northeast Recycling Council, Sortera Technologies and more

    News from MKV Polymers, Metallium Ltd. and more

    Certification Scorecard for November 19, 2025

    News from American Beverage, Inteplast Group and more

    News from Action Carting Environmental Services, International Paper and more

    News from US EPA, US Strategic Metals and more

  • Conferences
  • Publications

    Other Topics

    Textiles
    Organics
    Packaging
    Glass
    Brand Owners

    Metals
    Technology
    Research
    Markets
    Grant Watch

    All Topics

Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion

    Industry Announcements for Week of December 1

    News from Dynamic Lifecycle Innovations, Precision E-Cycle

    News from Northeast Recycling Council, Plastipak and more

    News from Northeast Recycling Council, Sortera Technologies and more

    News from MKV Polymers, Metallium Ltd. and more

    Certification Scorecard for November 19, 2025

    News from American Beverage, Inteplast Group and more

    News from Action Carting Environmental Services, International Paper and more

    News from US EPA, US Strategic Metals and more

  • Conferences
  • Publications

    Other Topics

    Textiles
    Organics
    Packaging
    Glass
    Brand Owners

    Metals
    Technology
    Research
    Markets
    Grant Watch

    All Topics

Subscribe
No Result
View All Result
Resource Recycling
No Result
View All Result
Home Recycling

Malaysia to enact scrap import tax and restrictions

Colin StaubbyColin Staub
October 16, 2018
in Recycling
Share on XLinkedin

Scrap plastic shipments to Malaysia will be subject to new restrictions in the coming weeks, as the country follows through on its vow to get a handle on skyrocketing imports.

However, it remains unclear exactly what impact the move will make. One Asia-based industry professional said the proposed tax is too low to affect the decision-making of those moving material into the country. At the same time, diverse organizations in the country are pushing for further restrictions on imports of recovered plastic material.

The Malaysian Ministry of Housing and Local Government announced the tax plan late last month. The government agency said it will add a levy of 15 ringgits (about $3.62) per metric ton.

After China’s ban on imports of many recyclables, Malaysia has become the largest destination for U.S.’s scrap plastic exports in Asia, data analyzed by Resource Recycling shows.

The Malaysian government stopped issuing scrap plastic import permits in July, explaining that it was a three-month measure while officials developed regulatory controls. After that suspension, U.S. scrap plastic exports to Malaysia dropped from 52.5 million pounds in July to 9.6 million pounds in August, according to the latest trade figures.

The tax will begin on Oct. 23, the day the government begins processing import permits again. Plastic recyclables imports until this point have not been subject to levies, according to the government.

In addition to the tax, imports will face additional scrutiny. Importers will need to obtain new government approvals from different agencies, and processors operating in Malaysia will have new zoning requirements.

Expert reaction

Steve Wong, chairman of Hong Kong plastics recycling company Fukutomi, said the tax is very low and he theorized it is unlikely to reduce the volume of imports. He speculated it could be a separate initiative from the move to restrict imports.

“The tax does not stop contamination,” Wong said, noting that, “in fact, it can send the wrong message.” For example, if companies are now paying duties on material they’re bringing in, they might feel like they can get away with less quality.

As for the heightened restrictions on processors inside Malaysia, Wong described optimism among recycling companies. He described his conversations with facility operators who met with the country’s Minister of Housing and Local Government, Zuraida Kamaruddin.

“They said the meeting was positive for the recyclers,” Wong explained. Authorized companies observing the rules and preventing pollution will be able to carry on without problems, Wong relayed from his conversations.

Wong will speak during the Plasticity conference in Malaysia this month, presenting a session titled “Global Perspective on Waste Stream Economics and Impacts of the Chinese National Sword.”

Not far enough

After the government announced its taxation plan, several Malaysian organizations representing diverse interests stated that the tax doesn’t go far enough.

The Malaysian Plastic Manufacturers Association (MPMA) last weekend called on the government to impose a quota on scrap plastic imports.

“We don’t want to import the whole world’s waste,” the MPMA’s recycling committee leader, C.C. Cheah, told The Star Online newspaper. “We just want to import a sufficient amount that the local Malaysian industry needs.”

Cheah noted that the manufacturers association agreed with the government’s decision to halt import permits for three months. That was a necessary measure to shut down illegal operators and “protect the sustainability of the industry,” he told The Star Online.

MPMA previously stated that it supports increased regulation because illegal operators are giving the entire plastics processing industry a bad name.

The Consumers Association of Penang (CAP) responded to the taxation plan by calling for a complete ban on imports of scrap plastic. CAP advocates on a number of issues of public concern, including environmental protection.

The organization issued a Sept. 26 release expressing frustration with the Malaysian government, which CAP said “does not recognize the scale of the problem” of plastic scrap imports.

“Now that China has closed its borders to foreign waste, we are discovering that massive volumes of the same have started to arrive in the ports of Southeast Asian countries, including Malaysia where illegal factories to recycle plastic waste have mushroomed,” wrote S.M. Mohamed Idris, president of CAP. “We understand from reports that many errant recycling firms, many of which are from China and operating without permits, are burning residual waste that cannot be recycled or illegally dumping them.”

The tax, according to CAP, is not an adequate solution, and it doesn’t address domestic recycling infrastructure development.

“The cost and burden to public health and the environment far outweigh the revenue gained by the Malaysian government from the levy imposed on plastic waste imports,” Idris wrote. “We already have plastic waste generated domestically which needs to be recycled safely.”

Photo credit: Derek Brumby/Shutterstock
 

Tags: AsiaPlastics
Colin Staub

Colin Staub

Colin Staub was a reporter and associate editor at Resource Recycling until August 2025.

Related Posts

Handshake at business meeting.

Singapore firm acquires UK metals recovery operation

byJared Paben
July 25, 2019

A business acquisition will bring British technology for extracting valuable e-scrap metals to the Asian market. Singapore-headquartered Blue Planet Environmental...

Chinese company to open South Carolina recycling facility

byColin Staub
September 12, 2018

Green Tech Solution is developing a recycling facility in Blacksburg, S.C. A Chinese investment firm is planning a $75 million...

July trade analysis: Plastics imports nosedive in Thailand

byColin Staub
September 11, 2018

A Thai policy restricting the import of scrap plastics has proved effective. U.S. scrap plastic exports to the country dropped...

Maryland plastics sortation plant will not reopen

byColin Staub
September 18, 2018

An idled plastics recovery facility is being dismantled and its components sold, after efforts to reopen it for the past...

Pricing for post-consumer grades remains constant

byRecyclingMarkets.net Staff
September 18, 2018

Residential fiber values have flattened out, while post-consumer PET prices continue a steady recent climb. The national average for corrugated...

Meera, e-scrap picker in India

How group bolsters standing of India’s informal workers

byVerena Radulovic
September 20, 2018

A producer responsibility organization is working to overcome the conundrum of engaging low-income material aggregators by providing them with new...

Load More
Next Post

Major companies involved in recycling to merge

More Posts

Redwood secures $350 million to expand recycling, storage

Redwood secures $350 million to expand recycling, storage

November 6, 2025
CMR, Paladin form REcapture to expand rare earth recovery

CMR, Paladin form REcapture to expand rare earth recovery

November 6, 2025
Earnings results point to active IT hardware lifecycles

Earnings results point to active IT hardware lifecycles

November 6, 2025
Texas students turn old tech and e-scrap into art 

Texas students turn old tech and e-scrap into art 

November 6, 2025
Analysis: Q3 earnings confirm new industry priorities

Analysis: Q3 earnings confirm new industry priorities

November 13, 2025
Iron Mountain raises ITAD guidance on strong growth

Iron Mountain raises ITAD guidance on strong growth

November 13, 2025
ERCC outlines shift toward convenience benchmarks

ERCC outlines shift toward convenience benchmarks

November 13, 2025
Analysis: EU softens ESG rules as compliance pressure builds for US

Analysis: EU softens ESG rules as compliance pressure builds for US

November 20, 2025
Sector holds wide gaps in environmental standards

Sector holds wide gaps in environmental standards

November 20, 2025
From crawl to run: a clear roadmap for ITAD ESG

From crawl to run: a clear roadmap for ITAD ESG

November 20, 2025
Load More

About & Publications

About Us

Staff

Archive

Magazine

Work With Us

Advertise
Jobs
Contact
Terms and Privacy

Newsletter

Get the latest recycling news and analysis delivered to your inbox every week. Stay ahead on industry trends, policy updates, and insights from programs, processors, and innovators.

Subscribe

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • The Latest
  • Analysis
  • Recycling
  • E-Scrap
  • Plastics
  • Conferences
    • E-Scrap Conference
    • Plastics Recycling Conference
    • Resource Recycling Conference
    • Textiles Recovery Summit
  • Magazine
  • About Us
  • Advertise
  • Archive
  • Jobs
  • Staff
Subscribe
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.