Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    From claims to custody: PCR procurement grows up

    From claims to custody: PCR procurement grows up

    What the NAND flash crunch means for remarketing, refurbishment and residual values

    Telamon acquires ITAD consultancy Retire-IT

    Certification Scorecard — Week of July 6, 2026

    Tech giant pens detailed ‘plastic-free packaging’ guide

    What Google’s latest report means for ITAD

    Unpacking the Starbucks cup data

    Unpacking the Starbucks cup data

    Amazon cutting out more flexible packaging

    Amazon’s AWS hardware reuse is measured

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
Subscribe
No Result
View All Result
Resource Recycling
  • The Latest
  • Analysis
    • All
    • Certification Scorecard
    • Industry Announcements
    • Opinion
    From claims to custody: PCR procurement grows up

    From claims to custody: PCR procurement grows up

    What the NAND flash crunch means for remarketing, refurbishment and residual values

    Telamon acquires ITAD consultancy Retire-IT

    Certification Scorecard — Week of July 6, 2026

    Tech giant pens detailed ‘plastic-free packaging’ guide

    What Google’s latest report means for ITAD

    Unpacking the Starbucks cup data

    Unpacking the Starbucks cup data

    Amazon cutting out more flexible packaging

    Amazon’s AWS hardware reuse is measured

  • Conferences
    • Resource Recycling Conference
    • Plastics Recycling Conference
    • E-Scrap: The Longevity Conference
    • Textiles Recovery Summit
  • Publications
    • E-Scrap News
    • Plastics Recycling Update
    • Policy Now
    • Resource Recycling
    • Other Topics
      • All Topics
      • Brand Owners
      • Critical Minerals
      • Glass
      • Grant Watch / RFPs
      • Markets
      • Organics
      • Packaging
      • Research
      • Technology
      • Textiles
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

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
TweetShare
Colin Staub

Colin Staub

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

Related Posts

Groups call for end to e-scrap imports to Philippines

Groups call for end to e-scrap imports to Philippines

byPaul Lane
June 30, 2026

A task force claims hundreds of containers of material have illegally entered the country since last year.

EPR deadlines approach as lawsuits loom

byStefanie Valentic
June 23, 2026

Packaging producers in Washington and Maryland have until July 1 to register with a producer responsibility organization (PRO), demonstrating how...

Q1 containerboard exports drop by 19%

What SB 54 looks like from the packaging floor

byStefanie Valentic
June 1, 2026

With compliance deadlines coming on quickly, smaller companies are struggling to absorb changes and stay on the right side of...

Wisconsin prepares for E-Cycle rulemaking

Reading Asia’s e-scrap recycling market through YDDL

byDavid Daoud
May 15, 2026

One Asian recycler’s latest financials offer a rare, detailed look at how downstream metals recovery from e-scrap is developing in...

Borealis, Borouge aim to bolster PE, PP recycling in Indonesia

byPaul Lane
February 27, 2026

Plastics recycling in the Southeast Asian nation focuses on PET and on industrial and commercial waste, while post‑consumer polyolefin packaging...

State policy is redefining plastics recycling in the US

State policy is redefining plastics recycling in the US

byKate Bailey
February 19, 2026

This year marks the midpoint of a decade defined by major shifts in plastics and recycling policy. Here’s what to...

Load More
Next Post

Major companies involved in recycling to merge

More Posts

Two recycled-content bills gain approval in California

California agriculture seeks SB 54 repeal

July 7, 2026
Unpacking the Starbucks cup data

Unpacking the Starbucks cup data

July 8, 2026
Oregon’s Recycling Modernization Act faces injunction

Oregon’s EPR program posts first-year results

July 6, 2026
Tech giant pens detailed ‘plastic-free packaging’ guide

What Google’s latest report means for ITAD

July 8, 2026
In Our Opinion: Coalitions: The EPR Differentiator

Inside NAW’s constitutional case against packaging EPR

July 6, 2026
SB 54 draft rules generate debate on rates, review

California increases PET market payments

July 7, 2026
EPR fees are a market signal. Here’s what they’re telling you.

Building the infrastructure behind EPR

July 6, 2026
MP Materials breaks ground on rare earth magnet campus in North Texas

ERI confirms ITAD shift toward minerals

July 3, 2026
Auto Draft

Digital product passports offer gateway into secondary market

July 7, 2026
Canada EV battery reuse pilot to start

Canada EV battery reuse pilot to start

July 8, 2026
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
  • Policy Now
  • 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.