This publication may be reproduced in whole or in part and in any form for educational or non-profit purposes with written

permission from the Ministry of Environment & Water (KASA).

Published in 2021 by
MINISTRY OF ENVIRONMENT & WATER (KASA), MALAYSIA
Block F11, Complex F
Federal Government Administrative Centre
62000 Putrajaya
MALAYSIA
www.kasa.gov.my
 2021-2030

Acknowledgement
This Malaysia Plastics Sustainability Roadmap was Our sincerest appreciation also goes to Malaysia Green
developed through the active and dedicated participation Technology and Climate Change Centre (MGTC) and
of various stakeholders, representing federal and state WWF-Malaysia for the facilitation rendered during the
governments, international organisations, academia, stakeholder engagements and drafting processes.
associations, industry players, financial institutions, and
non-governmental organisations. All the valuable inputs We are very grateful for the contributions, inputs and
were discussed, analysed and consolidated to shape this insight from the organisations below:
document.
The Ministry of Environment and Water would like to
express our highest appreciation to the World Bank Group
for supporting the background studies prior to the
formulation of this Roadmap.

International Organisations
Government Sector 1. The World Bank Group
1 Economic Planning Unit (EPU) 2. United Nations Children's Fund (UNICEF)
2 Ministry of Entrepreneur Development and Cooperatives (MEDAC) 3. Waste and Resource Action Programme (WRAP)
3 Ministry of Federal Territories (KWP)
4 Ministry of Finance (MOF)
5 Ministry of Health (MOH) Academia
6 Ministry of Housing and Local Government (KPKT)
1. Universiti Kebangsaan Malaysia (UKM)
7 Ministry of International Trade and Industry (MITI)
2. Universiti Sains Malaysia (USM)
8 Ministry of Science, Technology and Innovation (MOSTI)
3. Universiti Islam Antarabangsa Malaysia (UIAM)
9 Ministry of Domestic Trade and Consumer Affairs (KPDNHEP)
4. Universiti Putra Malaysia (UPM)
10 Department of Environment (DOE)
11 Department of Islamic Development Malaysia (JAKIM)
12 Department of National Solid Waste Management (JPSPN) Associations
13 Department of Standards Malaysia (Standards Malaysia)
1. Association of Malaysian Express Carriers (AMEC)
14 Malaysian Bioeconomy Development Corporation Sdn. Bhd. (BioEconomy)
2. Gabungan Persatuan-Persatuan Penjaja dan
15 Malaysia Green Technology and Climate Change Centre (MGTC)
Peniaga Kecil Melayu Malaysia (GPPPKMM)
16 Malaysian Investment Development Authority (MIDA)
3. Malaysia Plastics Recyclers Association (MPRA)
17 Malaysia Productivity Corporation (MPC)
4. Malaysia Retailers Association (MRA)
18 SIRIM Berhad
5. Malaysian Petrochemicals Association (MPA)
19 SIRIM QAS International Sdn. Bhd.
6. Malaysian Plastics Manufacturers Association (MPMA)
20 SME Corporation Malaysia (SMECorp)
7. Malaysian Recycling Alliance Berhad (MAREA)
21 Solid Waste and Public Cleansing Management Corporation (SWCORP)
8. Small and Medium Enterprise Association (SAMENTA)
22 Economic Planning Division, Kedah
23 Economic Planning Division, Perlis
24 Economic Planning Unit, Kelantan
Financial Institutions
25 Economic Planning Unit, Negeri Sembilan
26 Economic Planning Unit, Sarawak 1. Bank Pembangunan Malaysia Berhad
27 Economic Planning Unit, Selangor 2. CIMB Islamic Bank Bhd
28 Kedah State Secretary Office 3. Hong Leong Bank Berhad
29 Johor State Secretary Office 4. HSBC Amanah Malaysia Berhad
30 Ministry of Local Government and Housing Sarawak 5. HSBC Bank Malaysia Berhad
31 Penang Green Council 6. United Overseas Bank Limited
32 Terengganu State Secretary Office

i
 2021-2030

Private Sector
1 Alam Flora Sdn Bhd 29 Megafoam Containers Enterprise Sdn. Bhd.
2 BASF Malaysia Sdn. Bhd. 30 Meranti Global Waste Management
3 Binsen Plastic Industry Sdn. Bhd. 31 Miracle Spectrum Sdn. Bhd.
4 Canter Industries Sdn. Bhd. 32 Nestle Products Sdn. Bhd.
5 Chong Wah Plastics Sdn. Bhd. 33 NUDE the Zero Waste Store
6 Coca-Cola Bottlers Malaysia 34 Pembersihan MYMY Sdn. Bhd.
7 Centre for Research, Advisory and Technology (CREATE) 35 Perkhidmatan Pembersihan Ikhlas Sdn. Bhd.
8 Diyou Fibre (M) Sdn. Bhd. 36 Petronas Chemical Group Berhad
9 Dutch Lady Milk Industries Berhad 37 Petronas Dagangan Berhad
10 Erianas Enterprise Sdn. Bhd. 38 Q-Wizard Solutions Sdn. Bhd.
11 E-idaman Sdn. Bhd. 39 Recron (Malaysia) Sdn. Bhd.
12 E-Interglobal WM Sdn. Bhd. 40 ResourceCo Asia (M) Sdn. Bhd.
13 Fraser & Neave Holdings Bhd. 41 RS Polymer Sdn. Bhd.
14 Green Resource Recovery Sdn. Bhd. 42 Scientex Packaging Film Sdn. Bhd.
15 Guardian Health and Beauty Sdn. Bhd. 43 See Hau Global Sdn Bhd
16 Hatta Dolmat Design 44 Sha Sejahtera Ent.
17 Heng Hiap Industries Sdn. Bhd. 45 She Academy & Consultancy (M) Sdn Bhd
18 Isetan of Japan Sdn. Bhd. 46 Sipro Plastic Industries Sdn. Bhd.
19 KDEB Waste Management Sdn. Bhd. 47 SOGO (KL) Department Store
20 KLEAN Malaysia Sdn. Bhd. 48 Sunanjaya Sdn. Bhd.
21 Lasaju Consulting Sdn Bhd 49 TetraPak Malaysia Sdn. Bhd.
22 Lean Lee Trading Co. Sdn. Bhd. 50 The Food Purveyor Sdn. Bhd.
23 Logomas Packaging Sdn. Bhd. 51 Thong Guan Plastic & Paper Industries Sdn. Bhd.
24 Lotte Chemical Titan Holding Sdn. Bhd. 52 Topflight Plastics Sdn. Bhd.
25 Lotuss Stores (Malaysia) Sdn. Bhd. 53 Tycoplas Sdn. Bhd.
26 Lulu Group Retail Sdn. Bhd. 54 Wahbo (M) Sdn. Bhd.
27 Malakoff Corporation Berhad 55 Watson’s Personal Care Stores Sdn. Bhd.
28 Malaysia Airlines Berhad

Non-Governmental Organisations
1 Amanah Lestari Alam
2 Blue Hope
3 Fuze Ecoteer Outdoor Adventures Sdn Bhd
4 Glimpse of Malaysia
5 Impactlution / Generasi Peduli Sampah
6 RCOMM Lestari
7 Reef Check Malaysia
8 Sampah, Menyampah!
9 WWF Malaysia
10 Yayasan Tzu Chi
11 Zero Waste Malaysia

ii
2021-2030

We need to shift to a sustainable and

circular plastics economy, where we
produce and use plastics consciously,
and at the same time, tap the economic
value from this plastic waste.

YB Dato’ Sri Tuan Ibrahim Tuan Man

Minister of Environment and Water

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Foreword
COVID-19 virus has already rocked the world in terms of health, safety, economy and
social wellbeing in every country. This has challenged us to build resilience as we wade
through this pandemic, and the road ahead has to be on a green
recovery pathway. We need to keep the balance and embrace the planetary health
approach to understand that going green is also development.

The increase in plastic consumption during a pandemic era increases the burden
of waste management system and the environmental risk, particularly from plastic and
marine pollution. We need to shift to a sustainable and circular plastics economy, where
we produce and use plastics consciously, and at the same time, tap the economic value
from this plastic waste. In moving forward, Circular Economy is the best practicable
model of production and consumption, reducing pressure on the environment,
improving the circularity of the supply of raw materials, stimulating innovation,
extending product life-cycle, and boosting economic growth while closing the loop.

Malaysia Plastics Sustainability Roadmap, 2021-2030 outlines strategies and

action plans to achieve greater plastic circularity levels in Malaysia. We hope that this
roadmap will be the guidance policy to all stakeholders in ensuring plastic sustainability
along the value chain guided by the concept of circularity and be part of the solution
towards a sustainable environment.

Damage has appeared in land and sea

because of the doing of the people’s hands,
that He may make them taste something
of what they have done, so that they may
come back

(QS. Ar-Rum: 41)

2
2021-2030

Sustainable consumption and

production patterns are important
to reduce the usage of natural
resources and environmental
degradation, which leads to
planetary health.

YBhg. Dato’ Seri Ir. Dr. Zaini Ujang

Secretary General
Ministry of Environment and Water

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Preface
With today's expanding global population, limited capital, resources, and
unprecedented climate change impacts, one thing is certain: the existing economic's
linear model will not support sustainable living. New approaches, such as green,
environmentally friendly, or circular economy models are evolving, but not yet at scale.

Malaysia has always promoted sustainable development by balancing economic

growth and environmental protection, in line with the United Nations Sustainable
Development Goals (UNSDGs). Sustainable consumption and production patterns are
important to reduce the usage of natural resources and environmental degradation,
which leads to planetary health.

Align with the sustainable development agenda, Malaysia is moving towards

plastic circularity to close the waste loop and protect the environment. We will build on
the findings of current studies and provide ongoing support and guidance to key
players within the plastic value chain to adopt circularity. Shifting from a linear to a
circular economy for plastics is crucial to decoupling Malaysia's growth from
environmental degradation and will help ensure a more sustainable way of life for future
generations.

In preserving and sustaining the environment while generating the economy, we

need a mutual understanding of shifting towards competitive global supply chains to
encourage more multinational and smaller and medium sized enterprises (SMEs) to build
sustainable and inclusive business models. These development approaches cannot just
be about what governments spend, but it must harness the unprecedented resources of
our interconnected world.

Adhering to the SDG's objectives to ultimately achieve the goals, the government
would have to measure, monitor progress and manage the efficacy of the policy and
interventions along its course. As a result, companies will need to analyse their business
strategy's effect on the SDGs and change accordingly. This approach will need data, and
information to be collected, verified and reported.

This Malaysia Plastics Sustainability Roadmap is crafted to help inform all

stakeholders about the opportunities and necessary measures we must take
to unlock the potential value of the plastics industry and subsequently
achieve plastics circularity while also supporting the government and global
agenda towards a healthier, cleaner and sustainable Malaysia.

4
 2021-2030

Table Of Contents
ABBREVIATIONS 6
EXECUTIVE SUMMARY 8
GLOSSARY & WORKING DEFINITION 9 - 12
CHAPTER 1 - INTRODUCTION 13 - 20
1.1 Overview of global and Malaysia plastics landscape 13
1.1.1 The global plastics industry 13
1.1.2 The global plastics challenges 14
1.1.3 Malaysia plastics landscape 15
1.2 Challenges to plastics circularity and sustainability in Malaysia 19
CHAPTER 2 - MALAYSIA PLASTICS SUSTAINABILITY ROADMAP 21 - 34
2.1 Objective 21
2.2 Scope 22
2.3 Strategies 23
2.3.1 Improving product design, collection and sorting outcomes 23
2.3.2 Market development and innovation to grow a circular economy 23
2.3.3 Building capacity for reprocessing and manufacturing of recycled product nationally 28
2.3.4 Harmonising standards, regulations and messaging across jurisdictions 29
2.4 Transitioning to A Sustainable Plastics Economy 30
2.4.1 Extended Producer Responsibility 30
2.4.2 Producer Responsibility Organisation 31
2.4.3 Halal rPET 32
2.4.4 Communicating circularity and sustainability 33
2.4.5 Other key enablers 34
CHAPTER 3 - SETTING NATIONAL TARGETS 35 - 40
3.1 Problematic SUPs 35
3.2 Plastic Packaging Recyled 36
3.3 Plastic Packaging Recyclability 36
3.4 Recycled Content 37
3.5 Collected For Recycling (CFR) rate 38
3.6 Halal rPET 38
CHAPTER 4 - ROLES AND RESPONSIBILITIES 41 - 46

CHAPTER 5 - WAY FORWARD 47

5.1 National Governance for Plastic Circularity 47
5.1.1 National Steering Committee 47
5.1.2 Technical Committee 47
5.1.3 Think Tank 47

5
 2021-2030

Abbreviations
CAGR compound annual growth rate
CFR Collected-for-recycling
C&D construction and demolition
EMF Ellen MacArthur Foundation
EOL end-of-life
EPR extended producer responsibility
EPS expanded polystyrene
ESG environment, social and governance
E&E electrical & electronics
FMCG fast moving consumer goods
HDPE high-density polyethylene
LDPE low-density polyethylene
LLDPE linear low-density polyethylene
MAREA Malaysia Recycling Alliance
MASPA Malaysia Sustainable Plastic Alliance
MFA Material flow analysis
MNC Multi-national company
MPMA Malaysia Plastic Manufacturing Association
MPRA Malaysian Plastic Recycling Association
MRF material recovery facility
MSW municipal solid waste
Mt million tonnes
PE polyethylene
PET polyethylene terephthalate
PP polypropylene
PRO producer responsibility organisation
PS polystyrene
PVC polyvinyl chloride
R&D research and development
rPET recycled PET
SAS separation at source
SDG Sustainable Development Goal of the United Nations
UNEP United Nation Environment Programme
WWF World Wildlife Fund
ZWM Zero Waste Malaysia

6
 7

Malaysia Plastics
Sustainability Roadmap
2021-2030
 2021-2030

Executive Summary
Plastic pollution and marine litter are global crises that
need to be addressed in a systematic approach along the
entire plastic value chain. As Malaysia has always promoted
sustainable development by balancing economic growth
with environmental protection and societal well-being, this
Roadmap will be used to guide the country towards a
sustainable plastic economy, enabled through the
principles of circularity.

A circular economy for plastics is based on the principles of

designing out waste and pollution, while ensuring that the
use of plastics offers the highest environmental, social, and
economic benefits to the population. Achieving a circular
economy for plastics ensures that problematic and
unnecessary plastics are phased out up-front, and that
plastics at the end of life-cycles are designed to be reused,
recycled, or disposed of in a clean and sanitary way, and
safely returned to nature where there is any leakage from
collection systems. As well as benefitting the environment,
this approach will create innovation in materials and
processes in Malaysia, boosting the country’s economic
competitiveness. It also provides significant environmental
and public health benefits to the nation.

This document outlines strategies and action plans to

achieve greater levels of plastic circularity in Malaysia. The
Roadmap is based on science and has been developed in
an inclusive manner. The Government conducted a study to
understand the concept and mechanisms of a circular
economy, and the current ecosystem including policy,
regulations, technology, research & development and
financing opportunities for plastic from production to
end-of-life treatment in Malaysia. Existing options and
future opportunities to improve plastic circularity were
tested for the viability in the Malaysian economic and
regulatory context. This was done by engaging with
representatives from public and private stakeholders, civil
societies, academicians, as well as financial institutions.
What is clear, is that success will only be achieved through
a whole nation approach. Each and every part of the
society has its part to play and this is a journey that we are
all in together.

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Glossary & Working Definition

Automotive sector Act-State
Referring to plastics usage in automotive manufacturing for a States adopting and implementing Act 672 (Solid Waste and
range of parts and components. Public Cleansing management Act 2007) - WP (Kuala Lumpur &
Putrajaya), Negeri Sembilan, Melaka, Johor, Pahang, Kedah and
Perlis.

Chemical recycling Biodegradable plastics

The polymerization of long polymer chains into monomers through A plastic in which all the organic carbon can be converted into
a chemical reaction by means of heat and/or chemical agents to biomass, water, carbon dioxide, and/or methane via the action of
produce monomer, chemical raw materials and/or fuels. naturally occurring microorganisms such as bacteria and fungi, in
timeframes consistent with the ambient conditions of the disposal
method. (ASTM)

Collected-for-recycling (CFR) Circular economy

Denotes the tonnage or percentage of a particular resin collected As envisioned in cradle-to-cradle thinking, the circular economy is
through the informal and formal collection sectors within the defined as an economic model in which resources like plastics are
country, which is then sold to processors and/or recyclers for used more efficiently through the three guiding principles of
recycling purposes, as compared to total plastic waste “reduce, reuse and recycle” where possible, while redesigning
generation. materials to return to nature if they escape the loop.

CFR = Plastic waste collected and accepted for recycling process

/ total plastic waste generated

Construction sector Compostable plastics

Referring to application of plastics in construction sector, Plastic that undergoes degradation by biological processes during
including insulation, roofing, pipes, and laminates. composting to yield CO2, water, inorganic compounds, and
biomass at a rate consistent with other known compostable
materials and that leaves no visible, distinguishable, or toxic
residue (ASTM).

Deposit Return System Converter

A system in which a surcharge is added to the product price on Companies which produce packaging material by converting raw
certain products and containers. When consumers return these material.
containers or products after they have become waste, the
surcharge is refunded.

Electrical & electronics Downstream

Referring to plastics application in E&E products as well as for its Refers to actors at the post-consumption stage, including waste
packaging. management companies, the informal sector, recyclers, and other
end-of-life treatment solution providers.

Expanded polystyrene End-of-life

Expanded polystyrene, manufactured from styrene, is a thermal End of the product lifecycle which prevents users from receiving
plastic material supplied to moulders in the form of a polystyrene benefits, indicating that the product is at the end of its useful life.
bead. The beads, which contain a blowing agent, are processed
and moulded into low-density foam articles, such as protective
packaging, and foam insulation for building and construction.

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Fast-moving consumer goods Extended producer responsibility

Products that move off the shelves of retail shops quickly, which An environmental policy tool that makes producers responsible for
therefore require constant replenishing. Fast-moving consumer the entire life cycle of the products that they introduce on the
goods include processed foods, prepared meals, beverages, market, from their design until end-of-life (including waste
baked goods, fresh foods, frozen foods, ready-to-eat, consumer collection and recycling).
electronics, medicines (medication that can be purchased without
a prescription), cleaning products, cosmetics and toiletries, as
well as office supplies.

Homogeneous plastics High-density polyethylene

The same type of plastic scraps and clean with no residue High-density polyethylene (HDPE) is famous for its tensile strength
contained. and ability to stand high temperatures. HDPE is used in wide
variety of application, including bottles, durable containers,
grocery bags, plastic pipe, water coolers as well as fuel tanks,
inner and outer protective covers for automotive application.

Kerbside collection Informal sector

Domestic household waste collection method, typically in urban Consist of self-employed individual plastic waste collectors
and suburban areas, where the residents sort their domestic includes scavengers, waste pickers, junk shops, aggregators,
waste according to material type. It is usually accomplished by scrap dealers that play a significant role in the collection and
personnel using specially built vehicles to pick up household recovery of reusable or recyclable waste, either directly from the
waste in provided bins that are acceptable to, or source where no formal collection systems exist, hauler trucks, or
prescribed by, the municipality and are placed on the kerb. landfills and dumpsites, and offered for sale to recyclers directly or
through intermediaries to earn a livelihood.

Linear low-density polyethylene Low-density polyethylene

This type of low-density polyethylene increases the degree of This type of plastic has excellent resistance to acids, bases and
crystallinity, which results in impact strength and higher tensile vegetable oils. LDPE has significantly relative transparency,
than LDPE. This polyethylene can be processed into thinner films toughness, and flexibility, which make it ideal for both packaging
with better environmental stress crack resistance. LLDPE is used and nonpackaging application such as meat and poultry
predominantly in film applications, but can also be used in cable wrapping, dairy products, snacks and sweets, frozen food bags,
covering, toys, lids, buckets and containers, and pipes. baked goods.

Material flow analysis Manufacturer

An analytical method to quantify flows and stocks of materials or Companies which produce plastic products by converting raw/
substances in a well-defined system. recycled material.

Material value unlocked Material value loss

Refers to potential monetary benefit from plastic recycling. Amount of loss when:
(i) plastic resins are not recycled into product (based on best
Material value unlocked = value yield x CFR rate circular scenario for that particular resin); or
(ii) the resins are not recycled at all (e.g. when disposed of in a
landfill).

Midstream Mechanical recycling

Refers to actors at the distribution and consumption stage such as The processing of plastic waste into secondary raw material or
wholesalers, distributors, traders, retailers and consumers. products without significantly changing the chemical structure of
the material – (as defined by Basel Convention).

Municipal waste / municipal solid waste Mismanaged plastic waste

Refer to any substances or scrap materials which the user Plastic which is inadequately disposed of or leaks out of
discards or intends to discard everyday such as product collection systems.
packaging, clothing, bottles, food scrap, etc.

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 2021-2030

Obliged parties Non Act-State

Companies who introduce plastic into the market, comprises of States not adopting Act 672 (Solid Waste and Public Cleansing
producers, manufacturers, importers, converters and brand Management Act 2007) – Sabah (including WP Labuan),
owners.These companies are obliged to pay an eco-modulated Pulau Pinang, Perak, Selangor, Terengganu, Kelantan, Sarawak.
fees structure to compensate the potential impact of plastic
introduced into the market.

Plastics Packaging sector

Synthetic or semi-synthetic material made of petroleum. Packaged daily necessities application using plastics for various
products including processed foods, beverages, dry foods, fresh
foods, baked food, cosmetics and toiletries, ready-to-eat, frozen
foods, consumer electronics, health and hygiene products, office
supplies and stationery.

Polyethylene Plastic leakage

Also known as PE and used in polyethylene terephthalate (PET), Plastic leakage is the potential amount of macro- and micro
high-density polyethylene (HDPE) and low-density polyethylene plastics that are not kept in a circular loop or properly managed at
(LDPE). their end-of-life, thus leaking into the environment.

Polypropylene Polyethylene terephthalate

Polypropylene, also known as PP, is a food-safe plastic. It’s used to Polyethylene terephthalate, or PET, is a strong, durable and
hold all kinds of foods,beverages and medications. It can also be recyclable material that is used for soda bottles, water bottles and
used to make carpeting, roof membranes and fabric. food jars.

Polyvinyl chloride Polystyrene

A polymer of vinyl chloride used to make a diverse range of Polystyrene is a hard, solid plastic, that is often used in products
cost-effective products with various levels of technical that require clarity, such as food packaging and laboratory ware.
performance suited to a wide range of applications. PVC products When combined with various colorants, additives or other plastics,
include everything from medical devices such as medical tubing polystyrene is used to make appliances, electronics, automobile
and blood bags, to footwear, electrical cables; packaging, parts, toys, gardening pots and equipment and more.
stationery, profiles and toys.

Recyclable Post-consumer
Characteristic of a product, packaging, or associated component The status after an item has been used for its intended purpose.
that can be diverted from the waste stream through available Post-consumer material may be generated by household or
processes and programs and can be collected, processed, and commercial establishments.
returned to use in the form of raw materials or products

Resin Recycling rate (Plastic)

Substances which can be organic or inorganic in nature and Recycled plastic divided by the total amount of plastic waste
widely used as raw materials in the manufacturing of plastic generated. Material that is reused and avoided is not included in
products the recycling rate.

Recyling rate = recycled plastic / total amount of plastic waste

generated

Reverse vending machine Reusable

A device that accepts used (empty) beverage containers like Characteristics of a product that can be used in the same form for
bottles and cans and returns money, points, rewards to the user. the same or a different purpose. In this case, the product does not
become a waste.

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 2021-2030

Separation at source Recycled PET

Separation at source (SAS) requires the consumers to sort their Recycled PET (rPET) stands for recycled polyethylene
waste into categories, to be disposed of and recycled separately. terephthalate. PET is a strong, durable and recyclable material
that is used for soda bottles, water bottles and food jars, while
rPET can be made into such products as blankets,
insulation, car parts, shoes and more.

Sustainable design Single-use plastics

The integration of environmental aspects into the product Common plastic items intended to be used only once by
development process, by balancing ecological and economic consumers before they are disposed of.
requirements. Sustainable design should consider environmental
aspects at all stages of the product development process, striving
for products which make the lowest possible environmental
impact throughout the product life cycle.

Value yield Upstream

volume yield X price yield, where: Mainly refers to actors at the production level such as resin
volume yield = output volume / input volume, and producers, plastics manufacturers (also referred to as
converters), importers and brand owners.
price yield = price for recycled resin / price for most valuable
recycled resin

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 2021-2030

CHAPTER 1 - INTRODUCTION
1.1 Overview of Global and Malaysia Plastics Landscape
1.1.1 The global plastics industry
Plastics have become one of the most utilised and important Demand for plastic production and usage cuts across multiple
materials in our lives due to its versatility, durability, flexibility and economic sectors. Demand for plastics is particularly high in the
convenience, in addition to being lightweight and low-cost. This is food & beverage packaging, consumer goods packaging,
reflected in the production of plastics which have doubled since automotive, and electrical & electronics sectors. Plastics have
2000, outpacing all other bulk materials such as steel, aluminium the ability to ensure food quality, minimise food deterioration and
1
and cement . In 2019, global plastics production reached 368 avoid contamination, while providing flexibility, elasticity and
million tonnes and the annual global production of plastics is durability.
projected to reach 600 million tonnes in 2050, almost double the
2
figure recorded in 2015 . The growth of plastics consumption is The packaging sector consumes the largest proportion of
in parallel with its production. As emerging economies grow, their plastics, accounting for 36% of global plastics production in
consumption of plastics is projected to 2015. The upward trend is expected to continue, consistent with
surge accordingly. the plastics production projection for 2020 – 2050. Since most
plastic packaging is designed as single-use plastics, it is report-
The global plastics market size increased from USD502 billion in ed to contribute half of all plastic waste in 2015. The construction
3
2015 to USD568.9 billion in 2019 and USD579.7 billion in 2020 . sector is the second largest consumer of plastics (16%), followed
4
It is projected to grow to USD616.82 billion in 2028, at a by textiles (14%) . In terms of resins used, polyolefin-based
compound annual growth rate (CAGR) of 5.0% in the forecast plastics comprise the largest share globally.
period, which is from 2021-2028. Polypropylene (PP), low-
density polyethylene (LDPE/LLDPE), high-density polyethylene Specifically, the polyethylene (PE) product segment is the most
(HDPE), polyvinyl chloride (PVC) and polyethylene terephthalate commonly used resin with over 30% market share. PE Resins
(PET) are the most produced resin type globally. Figure 1 shows (including HDPE, LDPE/LLDPE) are widely used for packaging
the trend for global production of key plastic resin (1980 – 2050). applications due to its superior properties such as durability,
cost and efficiency 5.
700

600

500

400

300

200

100

1980 1985 1990 1995 2000 2005 2010 2015 2020 2025 2030 2035 2040 2045 2050
Key thermoplas�cs PET HDPE PVC LDPE PP PS Other
6
Figure 1: Global production trend on key resin (1980 - 2050)

1
IEA. 2018. The future of petrochemicals: Towards more sustainable plas�cs and fer�lizers. Paris. Interna�onal Energy Agency
2
Ibid.
3
Sta�sta. 2021. Global Market Value of Plas�c. www.sta�sta.com/sta�s�cs/1060583/global-market-value-of-plas�c [20 September 2021]
4
Sco�, A., Pickard, S., Sharp, S. 2020. Phasing out Plas�cs. h�ps://odi.org/en/publica�ons/phasing-out-plas�cs/ [20 September 2021]
5
Market Research Future. 2021. Global Plas�cs Market by Type, Size, Growth and Forecast to 2027,
h�ps://www.marketresearchfuture.com/reports/plas�cs-market-8347 [3 September 2021]
6
IEA. 2020. Produc�on of key thermoplas�cs 1980-2050. Paris. Interna�onal Energy Agency
13
 2021-2030

1.1.2 The global plastic challenges

The magnitude of the problem of mismanaged plastics lies in the Even when it is properly collected and disposed of, less than a
fact that plastics can persist for several decades. When plastics third of plastics waste is recycled while the remainder either sent
break-up it can create microplastics which might be invisible to to landfills or incinerated or sent for energy recovery. A 2014
the human eye but are harmful to natural ecosystems when it study by the United Nations Environment Programme (UNEP)
accumulated in the environment. Based on studies conducted estimated the natural capital cost of plastics resulting from
on plastic waste that has ended up in shorelines and coastal environmental degradation, contributions to climate change, and
regions, researchers have found that around 79% of health impacts amounted to USD75 billion annually in the
8
microplastics are less than 5 years old. The need to tackle plastic consumer goods industry alone . Whereas WWF found out that
pollution in general and microplastics specifically is live and the pollution, emissions and clean-up costs of plastic produced
urgent. in 2019 alone could be USD3.7 trillion. It is also estimated that
11 million tonnes of plastic waste are entering the ocean every
Close to 370 million tonnes of plastic were consumed in 2019, year 9 .
and overall plastic waste collection volumes were estimated to be
45% to 50% of the total consumption. The global plastic waste Packaging accounts for more than 40% of overall plastic
management market size is expected to increase from USD32.9 consumption and comprises more than 55% of total global
billion in 2019 to USD239.4 billion by 2025, growing at a CAGR plastic waste.However, less than 15% of the plastic packaging
of 3.05% over the 2020-2025 forecast period. waste generated is collected for recycling and huge amounts
leak into the environment. This not only results in a yearly losses
of USD80 to 120 billion, but without any intervention or
Urbanisation mitigation, there could be more plastic than fish (by weight) in the
10
ocean by 2050 .

Industrialisation
Factors contributing to
increasing plastic waste
7
generation .
Economic Growth

Lifestyle Change

However, the reality is that plastic waste management is inadequate at a

global level. Globally, one third of plastics (32%) ends up in the natural
environment as mismanaged waste. The majority of this ends up on land, which
then makes its way into the marine environment.

7
European Metal Recycling. 2020. Global Plas�c Waste Management Market Report and
Forecast 2020-2025. h�ps://www.expertmarketresearch.com/files/images/Global-Plas�c-
Waste-Management-Market-Report-and-Forecast-2020-2025.png [23 September 2021]
8
UNEP. 2014. Valuing plas�c: the business case for measuring, managing and disclosing
plas�c use in the consumer goods industry. Nairobi. United Na�ons Environment Programme
9
World Wildlife Fund. 2021. Plas�cs: The costs to society, the environment and the
economy. h�ps://wwfint.awsassets.panda.org/downloads/wwf_pctsee_report_english.pdf
[20 September 2021]
10
Ellen MacArthur Founda�on. 2017. The New Plas�cs Economy: Rethinking the future
of plas�cs & catalysing ac�ons. h�ps://ellenmacarthurfounda�on.org/the-new-plas�cs-
economy-rethinking-the-future-of-plas�cs-and-catalysing [22 September 2021]

14
 2021-2030

1.1.3 Malaysia plastic landscape

Plastics production
The plastics industry contributes a significant amount to
Malaysia’s economy. A total turnover of RM33.10 billion was
11
registered in 2019 , representing an increase of 6.8% from
RM30.98 billion in 2018. Export grew by 2.9% from RM14.60
billion in 2018 to RM15.03 billion in 2019, while import of plastic
12
products grew 5.4% to RM11.89 billion . Exports however
declined by 11% to RM13.3 billion in 2020 due to a weaker
global economy caused by the COVID-19 pandemic.

Looking from the resin importation and production perspective,

Malaysia is a net exporter of plastic resin. According to Ministry
of International Trade and Industry (MITI), the country imported
close to 3.1 million tonnes of resin in 2019, while exporting
3.5 million tonnes. In total, Malaysia’s consumption of key resin
adds up to 1.7 million tonnes, with the largest volumes
comprised of PP, PE, LDPE/LLDPE, HDPE and PET
(for polyester and packaging purposes). Detailed volume of
13
resin produced and consumed can be found in Figure 2 .

In terms of consumption , the packaging, electrical & electronics

(E&E), construction and automotive sectors account for 91% of
the Malaysian plastics manufacturing industry’s RM33.10 billion
annual turnover (see Figure 3 for details). Packaging is the
largest end-use sector, consuming 48% of resin to produce
plastic bags, containers, films, plates, sheets, foil, strip bottles
and boxes.

Characteristics such as flexibility, strength, lightness, stability,

impermeability, and ease of sterilization make plastics an ideal
packaging material for all types of commercial and industrial
users, in both flexible and rigid formats. The E&E comes is the
second largest consumer, with 27% of total resin consumption
and mainly used for electrical components/ parts and home
appliances such as casings for television sets, radios, parts for

11
Malaysia Plas�c Manufacturer Associa�on. 2020. Annual Report 2020.
h�ps://mpma.org.my/v4/wp-content/uploads/2020/09/MPMA-AR2020-FINAL-30092020.pdf
[22 September 2021]
12
Ministry of Interna�onal Trade and Industry. 2019. MITI Report 2019.
h�ps://www.mi�.gov.my/mi�/resources/MITI%20Report/MITI_REPORT_2019.pdf
[21 September 2021]
13
World Bank. 2021. Market Study for Malaysia: Plas�c Circularity Opportuni�es and Barriers

15
 2021-2030

air-conditioning units, telephones and accessories. Construction and automotive

are the third largest consuming sectors (8%), where plastics are typically used for
insulation, roofing, pipes and laminates for construction due to its durability and
resistance to corrosion, effective insulation, cost-efficiency, hygiene and ease of
installation, operation and maintenance.

Plastics provide energy absorption, weight reduction and innovative design, while
contributing to passenger safety, which is crucial in the automotive sector.
Plastics are used to manufacture a range of exterior and interior parts and
components, from engine components to chassis, exterior to interior, to electrical
and safety units. Household, agriculture and others use the remaining resin at 3%
each, mainly due to plastics’ resistance to aggressive environment and to most
chemicals, making it suitable for products that require longer lifespan.

Malaysia’s annual per capita plastic packaging consumption is high among all the
Southeast Asian countries at 16.78 kg/person14 . Total household plastic
packaging consumption in the country was estimated at 523,000 metric tonnes in
2020. This consumption is mainly driven by private households, small businesses,
and other end users, such as schools, hospitals, and government
buildings.

700000

600000

500000

400000

300000

200000

100000

local production
0
local consumption

PET packaging PET polyester PP HDPE LDPE/LLDPE

Figure 2: Production and trade volume of key resins in Malaysia in 2019, in tonnes.
Data collated based on World Bank’s Material Flow Analysis. Production data based on industry sources 15.

3%
3%
3%
8%

Packaging
8%
Electrical & Electronics
48%
Automotive

Construction

Household
27% Agriculture
Others

Figure 3: Plastic end-use by sector in Malaysia in 2019

14
World Wildlife Fund. 2021. Plas�c packaging in Southeast Asia and China.
h�ps://www.greengrowthknowledge.org/sites/default/files/downloads/resource/
Plas�c_Packaging_in_SE_Asia_and_China2020_WWF%20-%20Copy.pdf [19 September 2021]
15
World Bank. 2021. Market study for Malaysia: plas�c circularity opportuni�es and barriers.
Washington. The World Bank

16
 2021-2030

Magnitude of the problem

Waste management systems are constantly challenged by Based on the study by World Bank on plastic circularity
increasing waste generation and the limited resources and opportunities in Malaysia, it was reported that only 24% of
infrastructures in place, with plastics providing the second plastics (from four main resins (PET, PP, LDPE/LLDPE and
18
highest amount of overall domestic waste16. Malaysian household HDPE)) introduced to the market in 2019 were recycled . While
waste generation varies geographically and by economic status, 13% were either being processed for energy recovery or being
ranging from 0.85 to 1.5kg per person per day. Based on the sent to sanitary landfill, the remaining 63% were not recycled or
estimated population, an annual post-consumer plastic waste disposed of in proper facilities, which contributed to leakage into
17
generation was 1.07 million tonnes in 2016 . Comprising mostly the environment, as seen in Figure 4.
PET, PP, LDPE/LLDPE, and HDPE, this figure rose to
1.4 million tonnes in 2019. Around 0.14 – 0.37 million tonnes of
mismanaged plastic waste leaked into the ocean, as reported by
Jenna Jambeck in 2016. This figure grows exponentially with
increased plastic waste.

32% PET packaging, 30% PP, 28% HDPE, 10% LDPE material processed
[excluding PS, PVC, Other]* 2-5% process loss during recycling

4
Plastic recycled 0.32MT (24%)

5
Plastic in sanitary landfill 0.14MT (10%)

6
2
Plastic in energy recovery 0.05MT (3%)
Plastic
1
disposed
Plastic (2019) 8
Plastic disposed in unsanitary
brought to the 1.4MT landfill 0.59MT (66%)
market
1.69MT 9
Plastic openly burned 0.07MT (7%)
7
Plastic not recycled / proper landfill
0.89MT (63%) 10
Plastic leakages (littered) 0.01MT (1%)

11
Plastic leakages (marine debris) 0.22MT (24%)

3
Future disposal
0.29MT

1
Including virgin + recycled resin converted locally + imported end packaged product – exported plas�c product
2
Plas�cs produced into products which consumed and disposed in 2019 only
3
Stocks/inventory and yet to be consumed/disposed
4
Plas�c recycling (2019) rates; PS, PVC, Others – less recycling value, hazardous & no recycling technology
5
Plas�c waste disposed in legally operated landfill, e.g.: Bukit Tagar Sanitary Landfill, Worldwide Landfill Park
6
Waste-to-Energy facility, e.g.: WTE plant (Langkawi & Kajang), landfill gas (Bukit Tagar & Jeram), processed engineered fuel (ResourceCo)
7
Contaminated with other substances including organic waste & ink + leaked from the SWM stream + illegal dumping; product by-design is not
recycling friendly, less recycling value, no recycling technology
8
Illegal dumping
9
Including illegal recycling facili�es, e.g.: Jenjarom & Sg. Petani
10
Plas�cs li�ered remains on land
11
Plas�cs li�ered found on coastal areas as well as in the ocean, not including ghost nets and abandoned fishing gears (fishing lines, buoy, etc.)
Figure 4: Material flow analysis on four main resins, 2019

16
NSWMD. 2013. Survey on SW Composi�on, Characteris�cs & Exis�ng Prac�ce of SW Recycling in Malaysia. Putrajaya.
Department of Na�onal Solid Waste Management.
17
WWF Malaysia. 2020. Study on EPR scheme assessment for packaging waste in Malaysia. Petaling Jaya. World Wildlife Fund Malaysia
18
World Bank. 2021. Market study for Malaysia: plas�c circularity opportuni�es and barriers. Washington. The World Bank

17
 2021-2030

Market potential
In 2019, 1.69 million tonnes of PET, PP, LDPE/LLDPE and HDPE However, due to a 24% recycling rate of plastic and a value yield
were brought into the Malaysian market, and 1.4 million tonnes of 77% from the resins which were recycled, only USD234 million
were estimated to be disposed (managed or unmanaged) in the (19%) per year is being unlocked. This results in USD1.0 to
same year. The total material value disposed of, if recycled, had 1.1 billion of potential material value that is untapped.
the potential value equal to USD1.3 billion.
Table 1 summarizes the potential value loss for these key
resins for 2019.

Material value Material value loss

Resin Average CFR rate (%) Value yield (%)
unlocked (%) (USD million)/year

91
PET - packaging
36.5 79 29 -
109

PET - polyester 2.5 67 2 26

259
PP 30 75 22 -
285

258
LDPE/LLDPE 10 84 8 -
283

327
HDPE 28 74 20 -
376

Table 1: Potential value loss for key resins, 2019

19
World Bank. 2021. Market study for Malaysia: plas�c circularity opportuni�es and barriers. Washington. The World Bank
20
ibid

18
 2021-2030

1.2 Challenges to Plastics Circularity

and Sustainability in Malaysia
Based on a comprehensives literature review and stakeholder
consultation, 14 key challenges have been identified across
plastics value chain which require specific interventions with
pragmatic approaches. These challenges have been analysed in
terms of their root causes that can be grouped into four
categories: market/economy, technology, regulatory, and
culture/society. These have been mapped to reflect the level of
control and impact as seen in Figure 5.

The first quadrant represents key challenges that require

industry interventions, while key challenges in the 2nd quadrant
calls for government interventions. The 3rd quadrant highlights
the enforcement issues and the 4th quadrant is about providing
funding for R&D activities.

Table 2 further explains the challenges that may create

bottlenecks for plastics circularity and sustainability in Malaysia.

Lack of clarity around using recycled content in food

grade applications
Absence of extended producers responsibility (EPR)
scheme
Lack of circularity integration in corporate
decision-making (manufacturing/production) Unsatisfactory quality of local plastic waste
(SAS- buy back)
Lack of awareness of responsible consumption
Limited materials recovery (recycling) capacity
among consumers(behaviour)
(CFR, distribution of facilities in the country)
lack of alternative end-of-life solutions for local
Consumers price sensitivity towards alternative
plastic waste (recycling technology)
product and services (market sentiment)
Absence of macro data to monitor plastic
Limited responsible investment for innovative production, consumption, plastic waste collection
Impact

SMEs (access to financing from local financial and materials recovery (including recycling)
institution)
Unclear plan to phase-out problematic SUPs

1 2
4 3
Lack of domestic R&D on sustainable design and Inadequate and incoherent policies around plastic
material innovation for end product (extrusion consumption and disposal (state vs non-state act)
technology, eco and better performing resins)-
industry led - home country Unsatisfactory enforcement of policies (SAS, illegal
recycling facilities)

Control

Figure 5: Key challenges mapping

19
 2021-2030

Challenges Bottlenecks/Barriers

Lack of clarity around using recycled Uncertainties and unclear policy direction, as well as guidelines around the use of recycled content
content in food grade applications have limited the usage of locally produced recycled resin in F&B packaging. This also relates to the
concern over halal status for food-contact packaging made of recycled resin.

Absence of extended producers The adoption of EPR schemes in Malaysia has been limited to voluntary efforts from the private
responsibility (EPR) scheme sector around packaging. EPR schemes are regarded as useful interventions for reducing plastic
pollution, as they help to shift the responsibility of end-of-life treatment to producers or importers
who have introduced the products into the market place.

Such schemes can promote reducing waste at source, improve product design, and
encourage producers to explore circular business models.

Unsatisfactory quality of local plastic waste The lack of practicing separation at source among households contributes to the low-quality waste
(SAS – buy back) stream. Consumers should be incentivised or rewarded through a buy-back program to encour-
age them to segregate and send their plastic waste to a proper drop-off/recycling centre.

Limited materials recovery (recycling) Only 24% of the total plastic waste are being collected for recycling. The lack of recovery
capacity (CFR, distribution of facilities in the activities/processes leads to low-quality waste and uneven distribution of facilities across
country) geographies.

Lack of alternative end-of-life solutions for Alternative EOL solutions to mechanical recycling, such as chemical recycling, are limited in
local plastic waste (recycling technology) application. While mechanical recycling may be the best available technology for rigid plastic,
chemical recycling should be able to take care of the soft-plastic/films, etc.

Absence of macro data to monitor plastic Information on production volumes per plastic application is lacking, as is data on plastics
production, consumption, plastic waste consumption, waste collection, and recycling. This lack of national-level data, and independent
collection and materials recovery and authoritative source of information, poses obstacles for various value chains as
(including recycling) well as the government.

Unclear plan to phase-out problematic While Malaysia does not plan to outright ban any particular plastic product, it is now clear that
SUPs problematic SUPs need to be phased-out. However, there are no details on the plan. Identification
of a list of problematic SUPs is needed at the national level prior to phasing them out.

Lack of circularity integration in corporate Circularity integration is lacking in the steps of product design, procurement and production due to
decision-making (manufacturing/ concerns over cost, quality and performance. Low awareness level and knowledge around the
production) circular economy among corporates also hinders the adoption of circular models in their business
operations.

Lack of awareness on responsible Inadequate education efforts and convenience leads to a lack of awareness of responsible
consumption among consumers consumption among consumers. Levels of awareness also differs among different segments of
(behaviour) consumers, where young, urban consumers are relatively more conscientious in their
consumption behaviours than other age and geographical groups.

Consumers’ price sensitivity towards Malaysian consumers are convenience- and cost driven. The premium price makes a product or
alternative products and services service less appealing to consumers, thus discouraging brand owners from widely adopting
(market sentiment) circular solutions into their product and service portfolios.

Limited responsible investment for The recycling industry and wider circular economy innovation is often misunderstood and not seen
innovative SMEs (access to financing as an investable opportunity by local financial institutions. Interventions that allow for more
from local financial institution) accessible financing can help innovative SMEs grow and contribute toward plastic circularity and
sustainability.

Lack of domestic R&D on sustainable design There is lack of R&D funding for sustainable design and material innovations both from the
and material innovation for end product government and within the private sector. To move forward, more funding needs to be made
(extrusion technology, eco and better available to support R&D endeavours in extrusion technology, producing sustainable and better
performing resins) – industry led – home performing resin as well as products.
country

Inadequate and incoherent policies around The solid waste management differs in Act 672 state and non-state. This led into inconsistent
plastic consumption and disposal (state vs implementation at a nationwide scale.
non-state act

Unsatisfactory enforcement of policies Effective enforcement across the value chain is important in improving waste management. Lack
(SAS, illegal recycling facilities) of enforcement will contribute to low compliance with the waste segregation at source mandate,
and lax oversight of the recycling industry. This creates a blurred line between legal and illegal
operations.
Table 2: Summary of challenges to plastics circularity and sustainability in Malaysia
20
 2021-2030

CHAPTER 2 - MALAYSIA PLASTICS

SUSTAINABILITY ROADMAP

2.1 Objective

To sustainably address plastic

pollution in Malaysia, ensuring
economic development,
environmental protection and
societal wellbeing

To provide guidance and

promote sustainable business
practices in ensuring plastics
circularity and sustainability
through circular economy
approach

To harmonise actions along

plastic value chain through
adoption of life cycle approach

21
 2021-2030

2.2 Scope

This Roadmap will cover four types of resin: PP, PET, HDPE and In-line with the government’s circular economy and sustainability
LDPE/LLDPE. These resins are the most highly produced and agenda in the 12th Malaysia Plan, this Roadmap will be part of
disposed of in Malaysia, commonly used for single-use national efforts to balance between socioeconomic development
packaging with shorter application lifetimes and possess the and environmental sustainability. Supporting the Malaysia
highest recyclable value as reflected in Table 3. Roadmap towards Zero Single-Use Plastics, the aim and target
of this Roadmap is to set Malaysia on a pathway to plastics
As mentioned in Section 1.2, four sectors have been identified as
sustainability for 2030, and beyond. To ensure implementation of
the top end-users of plastics; packaging, electrical and electron-
the Roadmap is monitored and kept up-to-date, a mid-term
ics, construction and automotive. In the first and second phase
review will be carried out in 2026.
of this Roadmap, effort is concentrated on ensuring plastic
sustainability and circularity in the packaging sector. As we The implementation of this Roadmap calls for whole-of-nation
progress along, the effort will be extended to the remaining participation, involving federal and state authorities, industry
sectors accordingly. players, academia, civil societies, and the public. As a living
document, this Roadmap will be updated from time to time,
taking into account advancements in technology and real-time
circumstances in accordance with national priorities.

USE (virgin resin) USE (recycled resin)

1 plastic bottles for soft drinks, water, juice, food rFiber: carpet, fleece jacket, comforter fill,
jars bags, etc
ovenable film and microwavable food trays rPET (food-grade): containers for food,
PET textile, monofilament, carpet, strapping, films beverages bottles
and engineering mouldings rPET (non food-grade): Films, sheets,
strapping

USE (virgin resin) USE (recycled resin)

2 packaging application: shampoo bottles, rHDPE for packaging application
plastic bags rHDPE for industrial application:
automotive application: fuel tanks, inner and automotive and electronics components
HDPE outer protective covers

4 USE (virgin resin)

films for both packaging and non-packaging

USE (recycled resin)

rLDPE/rLLDPE for plastic lumber, furniture,

application such as meat and poultry trash bags, sheeting, films for agriculture,
LDPE wrapping, dairy products, snacks and sweets, flooring
LLDPE frozen food bags, baked goods

USE (virgin resin) USE (recycled resin)

5 rigid and flexible packaging rPP for packaging application
automotive application - battery cases and rPP for industrial application: automotive,
trays, bumpers, fender liners, interior trim, electronics and furniture industries
PP instrumental panels and door trims
fibres and fabrics

Table 3: Resin classification (adopted from American Chemistry Council)

22
 2021-2030

2.3 Strategies
mismanaged waste. This can be achieved through a proper
2.3.1 Improving product kerbside collection, where waste is separated according to types
to reduce contamination. Community collection centres also
design, collection and play a significant role in collecting more plastic waste as it is
within reach, hence making it easier for the public to drop-off
sorting outcomes their recyclables. Reward scheme like reverse vending
machines, or buy-back programmes can be introduced to
One of the key steps in plastic sustainability is to ensure that incentivise recycling effort and increase awareness among the
materials are kept in circulation for as long as possible (in its public.
highest possible value), can easily be recovered and recycled,
A range of actions are required to achieve higher-quality
and effectively reused. This can be done at the product design
outcomes in sorting facilities. These should include efforts to
stage, as well as during the collection and sorting of plastic
mainstream locally fragmented informal sectors/scavengers.
waste.
The role played by informal sectors has the potential to
Design is one of the key elements in the circular economy contribute to the overall waste management ecosystem.
approach, where the aim is to design out waste from the Malaysia should start tapping the potential which lies within
ecosystem. It must consider the hazard, exposure, and energy informal sectors by embarking on initiatives such as formal
used during the material extraction, manufacturing, registration processes through a controlled mechanism. In
consumption and end-of-life management. Improving product addition, changes to industry standards and contractual
design includes simplifying a product to be mono-material as an arrangements that demand a higher-quality sorting outcome will
alternative to flexible packaging, using recycled resin as material facilitate improvements along with more robust data collection.
input without compromising product quality and performance,
To complement the measures above, Malaysia will also take
easy disassembly, as well as designing out problematic material.
necessary action in phasing out the most problematic single-use
A focus on the design element of plastics allows us to produce
plastics based on an application’s necessity, recyclability,
products where material value can be optimised and can be kept
toxicity, disruption to recycling process, and probability of being
in the loop for longer.
mismanaged. The list will be prioritised based on consumption,
21
As well as being designed to remain in the loop as much as impact and available alternatives . Certain types of exemption
possible, products also needs to be redesigned to ensure it does may be provided for deployment of biodegradable technology to
not harm to nature should it ends up in the environment as mitigate initial impact on industry and consumers. New
mismanaged waste. Mismanaged waste is currently the standards will be developed to govern this and reference can be
end-of-life scenario for 63% of plastics in Malaysia. While this made with other internationally accepted standards such as the
Roadmap contains concrete action to reduce the level of ASTM D6400-05, D5338-09, ISO 17088, ISO 14855-2, ASTM
mismanaged plastic waste, we must also ensure that Malaysia’s D7081-05, D6691-05, ISO 14852-199, ISO 14851 and
contribution to plastics pollution is tackled urgently. New technol- BSI PAS 9017 standards.
ogies and standards now exist to ensure that while remaining
recyclable, plastic packaging materials can return to nature In coming up with national problematic single-use plastic list,
safely. Malaysia will adopt new standards and the uptake consultation will take place across industries and consumers to
of advanced technologies. build a balanced perspective on what to be deemed as
problematic plastic in Malaysia.
Plastic waste collection and sorting need to be strengthened to
ensure cleaner waste streams and reduce the amount of

Malaysia aims to achieve

plastic sustainability
2.3.2 Market development by adopting these
and innovation to grow a Three Key
circular economy Innovation Strategies
Developing an advanced plastic waste collection and recycling
market in Malaysia requires industry to rethink the packaging,
PHASE-OUT
rethink the product, and rethink the business model. REUSE
MATERIAL CIRCULATION
Ellen MacArthur Founda�on. 2020. The circular economy solu�on to plas�c pollu�on.
21

h�ps://plas�cs.ellenmacarthurfounda�on.org/breaking-the-plas�c-wave-perspec�ve [10 September 2021]

23
 2021-2030

PHASE-OUT
Products that do not serve an essential function need to be “Thong Guan Industries Berhad, a local plastic
indirectly phased-out through innovation. This includes converter, has produced nano stretch film that can
development of new products that function similarly or better, replace the normal multi-layered stretch film, used
without jeopardising the quality and efficiency, while remaining to wrap pallets and goods. Nano stretch film is a
easily recyclable. For example, a few innovations are already plastic film that is not only very thin, but provides
being introduced in the global market to replace plastic good grip and better load stability and durability. It is
packaging. One of them is “Apeel” - an edible coating made from also resistant to tear and puncture, consistent in
plant material that extends the shelf-life of fresh fruit and performance and fit for high-speed wrapping.”
vegetables, replacing the usual plastic wrapping. Another
example is “Ooho”, an edible and home compostable ‘blobs’ for
beverages and condiments made from seaweed.“Ooho” can be This will not only reduce the operational cost, but also the
used as a sachet for takeaway sauces and condiments, as well consumption and wastage of material.
as single-use beverage bottles and cups . 22

“Apeel”
an edible coating made from plant material that extends the
shelf-life of fresh fruit and vegetables

“Ooho”
an edible and home compostable ‘blobs’ for beverages and
condiments made from seaweed.

Ellen MacArthur Founda�on. 2020. Upstream Innova�on: a guide to

22

packaging solu�ons. h�ps://ellenmacarthurfounda�on.org/upstream-

innova�on-a-guide-to-packaging-solu�ons [19 September 2021]

24
 2021-2030

REUSE
“Zero Waste Malaysia is a non-profit organisation
This strategy focuses on reusing packaging, rather than registered under The Registry of Malaysia and a
discarding after one use. These models have been implemented community group based in Malaysia advocating for
in Malaysia by local business operators through the Zero Waste sustainable development and aiming to increase the
Pledge Certification programme initiated by Zero Waste local community’s awareness of sustainable living.
Malaysia (ZWM). With a vision to mainstream zero waste lifestyle,
ZWM encourages the community to minimise the
general waste footprint and embrace the circular
economy by challenging conventional methods to
reduce waste generation and utilise waste as input
23
Table 4: Example of REUSE model implementation in Malaysia material .”

How it works Example of local players

Refill at home Users refill a reusable container at home with Minus Zero Waste Store (Johor)
refills delivered to the door. LiquidETC “Roving Refillery” (Selangor)
PYNG Zero Waste (Johor)
Users retain the ownership of the packaging TM Organic Farms (Pahang)
and are responsible for cleaning their
reusables.
User
Buys Container
User
Uses Product

User
Refills Container

User
Acquires Refills
(in-store or online with home delivery)

How it works Example of local players

Refill on the go
Users refill a reusable container at the store – Seedy Zero Waste Store (Selangor)
either a zero-waste store or a traditional Nude The Zero Waste Store (Selangor)
grocery store. The Hive Bulk Food (Kuala Lumpur)
  Zero Waste Earth Store (Selangor)
Users retain the ownership of the packaging The Natural Marketplace (Selangor)
and are responsible for cleaning their Healthea Grocer (Pahang)
reusables. Kita Refill (Kuala Lumpur)

User
Buys Container
User User
Refills On The Go Uses Product

User
Cleans At Home

Zero Waste Malaysia. 2021. www.zerowastemalaysia.org

23

25
 2021-2030

How it works Example of local players

Return at home
Users subscribe to a service provider that My Milk Home Delivery (Selangor)
allows them to return empty packaging from Thanks Nature Store (Selangor)
home.
 
A service-provider then takes care of cleaning
and redistribution of the packaging.

User
Subscribes to service User
Acquires Refills
(in-store or online with home delivery)

Business
Cleans And Refills

User
Uses Product
Business
Picks Up Empty Packaging
(Swaps with new product)

How it works Example of local players

Return on the go
Users purchase a product whereas the Homemade4all (Kuala Lumpur)
packaging can be returned to the seller or a Fruitsfarm in the City (Selangor)
drop off point. Hup Teck Soy Sauce Factory (Perak)
 
The packaging is either cleaned or the
business takes care of the cleaning.

User
Purchases Product
(in returnable packaging
User
Uses Product

Business
Cleans And Refills

User
Returns Packaging
(at store or at drop-off
point such as mailbox)

26
 2021-2030

MATERIAL CIRCULATION
To ensure material circulation, plastic waste has to be properly
collected, sorted, treated and processed into recycled resin.
Besides collecting plastic waste using the conventional method,
for example kerbside collection and drop-off point/
centre, Malaysia should introduce and implement initiatives such
as Reverse Vending Machine (RVM) and Deposit Return
Scheme (DRS).

“KLEAN Malaysia, for example, has been

collaborating with Shell Malaysia where a few units of
smart RVMs are placed at some Shell stations in
Kuala Lumpur. Public will be rewarded with points
upon depositing their used plastic containers and
bottles, and these points can be redeemed for
24
rewards from KLEAN’s partners via the KLEAN App .”

We can also leverage the existing fleet-system and logistics

service to recover plastic waste from households. Similar to the
‘return at home’ or ‘return on the go’ model highlighted above,
e-hailing and food delivery services can be mobilised to
collect homogenous and clean plastic.

24
KLEAN. 2021. www.klean.asia

27
 2021-2030

2.3.3 Building capacity for reprocessing

and manufacturing of recycled product nationally
The most significant limitation of recycling is that not all materials Moving forward, Malaysia should look into advanced technology
can be recycled. Public’s confusion about types of materials that to improve the efficiency of the recycling industry. Advanced
can be recycled often leads them to placing recyclables in the recycling is one of the potential areas to be explored. It breaks
trash and being wasted, vice-versa. Other challenges in the down plastic material through the effect of chemical processes,
recycling ecosystem are obsolete infrastructures, reduced converting them into their original building components,
markets for recycled materials and varieties of methods used to specialty polymers, new plastics feedstocks, fuel, waxes and
25 29
measure recycling performance . other valuable products . In the coming years, a ground-
breaking process may be needed to remove colour, odour and
The lack of capability to collect plastic waste results in large plastic waste contaminants into the "virgin-like" resin that is the
30
annual loss of recyclable material and affects the effectiveness of basis for plastic products .
recycling industry. Pre-consumer industrial waste is
homogeneous and clean in nature, making recycling it much
easier 26. However, because the volumes of post-consumer waste “PETRONAS Chemical Group (PCG) together with
are far greater than those generated in commerce and industry, Plastic Energy Ltd. have collaborated to develop a
both post-consumer and post-industrial waste must be collected solution that turns non-recyclable plastic waste into
and processed together in order to attain high overall crude naphthalene in Malaysia. This new technology
recycling rates 27. helps divert low quality, mixed plastic waste from
being accumulated by turning it into naphthalene
While attempts are being made to enhance the quality of some quality oil (TACOIL), which can be used to produce
recyclables with market value, we should not forget that virgin quality polymers. In 2020, both organisations
manually performed sorting procedures yields limited results. completed a feasibility study to establish a facility
Most known common form of recycling in Malaysia is the that converts plastic waste to crude naphthalene.
traditional method, otherwise known as mechanical recycling, Following this, both organisations will continue with
which is only feasible for homogeneous and single stream resin the next phase of the project, which is a detailed
type. Thus, it is important to stay updated with latest sorting engineering study of the facility.”
and recycling technologies.

Since plastic products are getting more complex to fulfil business The establishment of an efficient systemic loop supply chain is
needs and might add problems to existing recycling procedures, needed to enhance recycling industries and market
an alternative solution to traditional recycling is needed . competitiveness. This requires a joint effort from all sectors, from
28
Advanced recycling technology picks-up where conventional the collection, sorting and recycling to the manufacturing and
recycling ends by concentrating on commonly post-consumer, with legislation and enforcement in place31.
used materials but difficult to recycle.

25
United States Environmental Protec�on Agency. 2019. Na�onal Framework for Advancing the U.S. Recycling System.
h�ps://www.epa.gov/sites/default/files/2019-11/documents/na�onal_framework.pdfepa.gov) [19 September 2021]
26
Chen, H.L., Nath, T.K., Chong, S. et al. 2021. The plas�c waste problem in Malaysia: management, recycling and disposal of local and global
plas�c waste. SN Appl. Sci. 3, 437.
27
Patel, M., von Thienen,N., Jochem, E., Worrell, E. 2000. Recycling of plas�cs in Germany. Resources, Conserva�on and Recycling. 29
28
American Chemistry Council. 2021. What is Advanced Recycling? And Why is it So Important for Mee�ng the Growing Demand for
Recycled Plas�cs? h�ps://www.americanchemistry.com/chemistry-in-america/news-trends/blog-post/2021/what-is-advanced-recycling-
and-why-is-it-so-important-for-mee�ng-the-growing-demand-for-recycled-plas�cs [17 September 2021]
29
ibid
30
Na�onal Geographic. 2021. Innova�ons in recycling. h�ps://www.na�onalgeographic.com/science/ar�cle/partner-content-innova�ons-in-recycling [17 September 2021]
31
NSWMD, 2011. A Study on Plas�c Management in Peninsular Malaysia. Putrajaya. Department of Na�onal Solid Waste Management.

28
 2021-2030

Demand For Recycled Material

(Local Feedstock)
With Basel Convention amendments taking effect in January Local industries are encouraged to innovate and adopt
2021, countries around the world need to create a recycling sustainable design. These mechanisms include introducing
system that no longer depends on resources from overseas. The incentives for related and relevant efforts, usage of fiscal tools
strict requirement of this cross-boundary movement of plastic is (i.e.: negative price incentives, eco-modulation of EPR, etc) to
reducing the inflow of plastic waste (to be processed and used drive the domestic market, certifications of products as well as
as raw material) and will somehow force the countries to utilise services opportunities.
domestic plastic scrap. Subsequently, the countries will have to
invest in managing their own plastic waste to be reproduced as Raising the importance of circularity in business process also
consumer product. needs to be highlighted in the sustainability reporting of listed
companies, and as Malaysia is heading towards that move,
As a developing country, Malaysia could explore various
plastic circularity should be added into that. This could possibly
mechanisms to encourage adoption of an effective recycling
attract more investments and generate more income,
system, thus achieving the objective of circularity. Local
contributing to our GDP.
industries are encouraged to innovate and adopt sustainable
design that promote reuse of materials, recycled materials
and/or improving the current complex packaging (including
packaging that involve multi components or layers).

2.3.4 Harmonising standards, regulations and messaging

across jurisdictions
At present, standards, regulations and messages vary widely It is also important that standards are shown to be equivalent to
across different ministries and agencies in Malaysia. This real-world performance.
provides a confusing outcome for businesses and consumers
Harmonising and developing standards, together with relevant
looking for the right thing. Harmonising Malaysia’s standards and
regulations, is not an end in itself. That said, it is an important tool
policies for give a clear direction of best practices will lead to
to ensure that the demands for resource-efficient and
better outcomes in managing plastic waste.
environment-friendly goods and services is stimulated and
Harmonised standards are necessary to create conditions for a increased in Malaysia. Partnership with industry and civil society
true circular economy by filling in regulatory gaps on issues like remains critical for effective delivery.
material efficiency, durability, repairability, reusability, and
As much as innovation being promoted as a catalyst to
recyclability. Standards can ensure a proper management of the
circularity and sustainability, it should not disrupt the existing
supply chain and material flows (production, consumption,
waste management ecosystem. Malaysia is looking forward to
post-consumption phase). Most importantly, properly enforced
technologies where plastics do not degrade into microplastics
standards give consumers and businesses a guarantee that the
and harm the people and planet. Products that fulfil such
product or process they are using will perform according to the
standards may be certified and labelled accordingly, upon
set expectations.
thorough assessment by the certification body, and assured
When applied to the end-of-life of plastics, standards are of the against credible standards. Malaysia also welcomes the
utmost importance. To date, many standards in this space have development of technologies and standards, as well as adoption
taken the form of test methods rather than specifications. A test of international best standards that allow for a sustainable plastic
method simply sets the criteria for how a material should be ecosystem.
tested, but does not specify the outcome of those tests. The
most up-to-date standards from around the world now take the
form of specifications, where pass-fail criteria are added to
ensure that not only is a repeatable test method followed, but a
desired outcome is achieved.

29
 2021-2030

2.4 Transitioning to A Sustainable Plastics Economy

2.4.1 Extended Producer Responsibility

Extended Producer Responsibility (EPR) is one of the policy Before moving into a mandatory EPR scheme in 2026, adoption
instruments under the circular economy approach that can of Voluntary EPR Phase will be implemented nationwide between
effectively push for plastic sustainability. Through EPR, all 2023 to 2025. The Government’s expectation will be for industry
stakeholders in the plastic value chain shall extend their financial to participate in the Voluntary EPR phase.
and/or physical responsibility across plastic value chain
including designing, improvement of product design, and Obliged parties will contribute an eco-modulated fee to fund the
treatment or disposal of their post-consumer products. operational cost (to collect, sort, recycle and dispose of their
post-consumer waste), and this fee will differ according to type of
EPR for plastic products will be implemented in a phased material and its recoverability and recyclability, as well as
approach and is beyond CSR, involving all players along the production volume and turnover. An independent organisation
plastic value chain. The scheme is to be driven by an referred to as the Producer Responsibility Organisation (PRO)
independent entity and upon its implementation, is expected to will be in the forefront of the EPR scheme.
be financially self-sustaining based on industry contributions.
To ensure smooth transition from voluntary to mandatory
The implementation of the EPR scheme will begin with a schemes, an EPR governance framework will be developed
voluntary scheme before transitioning to a mandatory scheme. starting in 2022. This will also take into consideration the existing
This takes into consideration the readiness and capabilities of policies, acts and frameworks across ministries and sectors
industry players, especially the small and medium-sized (environment, trade, consumer rights, waste management, etc.)
enterprises.In the first two years (2021-2022) during the as well as standards and other measures used globally.The EPR
Inception Phase, the government together with industry governance framework will incorporate the EPR target,
associations and relevant organisations will advocate for EPR responsibilities of each party, eco-modulated fee structure, and
adoption and readiness of the industry through various EPR mechanism for product improvement.
capacity building programs, as well as implementation of
INSPiRE program which will start in 2022.

Before moving into a mandatory EPR scheme in 2026,

adoption of Voluntary EPR Phase will be implemented
nationwide between 2023 to 2025. The Government’s
expectation will be for industry to participate in the
Voluntary EPR phase.

30
 2021-2030

2.4.2 Producer Responsibility Organisation

Producer Responsibility Organisation (PRO) is a third-party The three most frequent configurations are:
entity that coordinates and carries out collection, sorting, and
recycling of packaging waste on behalf of the producers. PRO is EPR schemes managed by one single
central for operating the EPR scheme and interacts with all
stakeholders in the value chain, including public agencies and
PRO
local authorities, which are traditionally in charge of waste
management. EPR schemes managed by several
non-competing PROs (e.g., they cover
PROs exist to exert three main functions:
different product categories)

Financing the collection and treatment EPR schemes managed by several

of the product at the end of its life cycle competing PROs.
by collecting fees and redistributing the
corresponding financial amounts
In addition to the number of competing PROs, the possibility and
Managing the corresponding data existence of individual compliance schemes must also be
considered. These factors will all be worked through as part of
the design process for the EPR scheme.
Organising and/or supervising these
activities.
“In Malaysia, a voluntary PRO known as Malaysian
Recycling Alliance (MAREA) was established in
Although the impact of EPR on competition depends on the January 2021 as an industry-led, pioneering
contextual and design characteristics of the schemes, one initiative towards a circular economy. Founded by 10
central feature is the market structure at the level of Producer like-minded FMCG companies that are taking the
Responsibility Organisations, particularly the number of lead in EPR in Malaysia, their goals primarily revolve
competing PROs offering compliance services to producers. around enhancing collection, promoting the use of
recycled and renewable materials, as well as
minimising post-consumer packaging leakage into
the environment.”

31
 2021-2030

2.4.3 Halal rPET

There is a need to provide regulatory clarity/guidance regarding JAKIM, Ministry of Health, Federation of Malaysian
the use of recycled resin in food contact packaging through Manufacturers (FMM), MATRADE, Halal Development
revision of the 1983 Food Act and Halal certification standards. Corporation, Persatuan Pengguna Islam Malaysia (PPIM),
This will reduce risk for companies that would otherwise be academia and others. The Department of Standards Malaysia
unwilling to produce and use recycled resin for their packaging. (JSM) act as the secretariat. Going forward Malaysia will
recognise the use of recycled resin in producing food-contact
Previously, the existing standards for halal packaging prescribed packaging.
under MS 2565:2014 Halal Packaging–General Guidelines and
within the purview of the Department of Islamic Development Hence, the current development of Halal Consumable
Malaysia (JAKIM)— the agency responsible for the Islamic Goods-General Requirements (MS2738:2021) is expected to
affairs in Malaysia. The relevant requirements are contained in push the domestic, regional, as well as global halal rPET market.
MS2565:2014 section 3.2(d), stating that Local recyclers and producers are encouraged to provide better
packaging made for direct food contact application shall not be recycling facilities which are in compliance with halal cleansing
made from recycled material. Thus, under this standard, it is requirement prescribed under MS2738:2021.
clear that food-grade recycled resin cannot be used for halal
food contact packaging. Henceforth, this Roadmap focuses on the development of a
halal rPET ecosystem based on the current mechanical
However, looking at the potential of bottle-to-bottle initiative as a recycling system. Looking at the increased demand for rPET
low hanging fruit to spur the recycling rate of polyethylene globally which is projected at USD21.56 billion value in 2028, it
terephthalate (PET) through circular economy model in is pertinent and necessary for local producers and recyclers to
Malaysia, KASA has been actively advocating the need for halal also look into other types of resins and recycling methods.
certification of recycled PET (rPET) as well as the material
cleansing process to the members of the Halal Consumable
Goods Working Group (WG) which consists of experts from

32
 2021-2030

2.4.4 Communicating Circularity and Sustainability

One of the challenges in ensuring plastic circularity and sustainability is

getting back used plastics from consumers and then transferring it to
recycling plants 32. Without consumer participation, there will not be enough
material to drive a viable circular economy for plastics. Despite the increase
in awareness raising campaign to beat plastic pollution, change in
consumers behaviour to embrace plastic circularity agenda is still minimal.

Brand owners play an important role in conveying the message and

influencing consumer behaviour to create a more circular and sustainable
plastic economy. The right consumer messaging from brands can reinforce
positive new beliefs among customers, shape emerging habits and
ultimately nudge consumers toward more environmentally responsible
behaviours, leveraging the push and pull effect.

The quality of a company’s communication and its ability to strike the right
tone on environmental issues, especially plastics pollution, will increasingly
become a competitive advantage. Malaysian consumers – especially
younger consumers – are demanding that brands tackle the problem. As a
result, consumers are pushing brands to take action which in turn
encourages a positive feedback loop as more and more society are
influenced by the positive messaging.

Similarly, awareness and behavioural change within businesses is

necessary to ensure plastic sustainability is designed into supply chain.
Awareness of circular economy principles, such as sustainable design,
could translate directly into business decisions that improve circularity. For
example, instead of using a coffee cup lid made of polystyrene, which are not
easily recycled given Malaysia’s current recycling capacity, coffee shops can
33
change to PP or HDPE cup lids which allows for higher recyclability . Advo-
cating positive messaging on redesigning products should be the core
component of sustainability effort to tackle plastic pollution.

In the past decade, there is a growing environmental awareness among

individuals and communities within Malaysia. This, by and large, resulted
from campaigns and education programmes organised by public interest
groups which include non-governmental organisations (NGOs), civil
societies and other community-based organizations. As such, these groups
play an important role in contributing efforts towards sustainability and
circularity through participation, advocacy, promoting awareness and
education, community engagement, environmental monitoring, developing
awareness projects and campaigns, research and development and lastly
training and capacity building.

“With the power and expertise to engage and influence the

public, NGOs and civil societies are some of the critical
groups that can support in communicating the message to the
public and drive behaviour change in the long term.”

32
The Sustainability Ins�tute. 2020. Engaging Consumers to Reduce and Recycle.
h�ps://www.sustainability.com/thinking/engaging-consumers-to-reduce-and-recycle/ [22 September 2021]
33
Hooker, L. Four solu�ons to the disposable coffee cup problem. h�ps://www.bbc.com/news/business-40951041 [19 September 2021]

33
 2021-2030

2.4.5 Other key enablers

Research, Development And Innovation (R,D&I)
Research, development and innovation (R,D&I) can be a catalyst for plastic circularity and sustainability
where researchers develop practical solutions. These can include designing and formulating better products,
producing new technologies to improve recycling, providing alternatives to help in phasing-out problematic
plastic products, or redesigning sustainable packaging with nature in mind. However, the circular economy
concept is still new in Malaysia and not getting as much attention from the research funding providers as
necessary. Malaysia needs to expand existing R,D&I funding to include plastic sustainability and circularity as
part of its scope. A dedicated fund that focuses on specific elements, for example sustainable design, high
performance materials, extrusion and recycling technologies, and industry symbiosis would be very beneficial
to the industries.

Beyond the classic model of funding provision, Malaysia is also looking at creating new partnerships between
academia and industry. This will include developing national competency and expertise for new
emerging technologies in line with international best practices and technological advancement.

Alternative Financing 
Financial institutions have a key role in encouraging and stimulating circularity by investing in
34
sustainable consumption and production . According to UNEP, financial institutions can support
circularity in many ways, including:

Re-orienting investments towards more sustainable technologies and businesses

that enhance the circularity of economies; finance restorative and regenerative
business models in a sustainable manner over the long-term; start developing
strategy execution pathways to contribute to the creation of a low-carbon and
climate resilient through circular model;

Integrating the circularity or 9-R concept (Refuse, Reuse, Reduce, Redesign,

Repurpose,Remanufacture, Repair, Refurbish, Recycle) in financing policies,
product development and client engagement

Integrating environmental, social and governance (ESG) component, identify

significant impacts and set targets related to resource efficiency in the transition.

Plastic Data Analytics

To date, national-level data regarding plastics is fragmented and not comprehensive. Information of
production volume per application is not accessible, neither is data on plastic consumption, plastic
waste collected, and plastic waste recycled (material processed). Based on the national economic
statistics from DOSM, plastic manufacturing falls under the overall manufacturing activities, making it
difficult to understand the total sales of plastics by local manufacturers at end-use sector level. On
the other hand,considering the lack of a harmonised plastic waste collection system and the
involvement of the informal sectors, it is challenging to access the volume of plastics and the specifics
such as resin type and application within the municipal waste stream on a national level.

The existence of complete and consolidated data is crucial to map the market potential through the
material flow analysis. As of now, data collection largely relies on voluntary reporting from the industry
through various platforms. Thus, there is a need to collect data through an open data platform, where
it can be done more systematically, transparently and holistically.

34
UNEP Finance Ini�a�ve. 2020. Financing Circularity: Demys�fying Finance for Circular Economies. Nairobi. United Na�on Environment Programme

34
 2021-2030

CHAPTER 3 - SETTING NATIONAL TARGETS

3.1 Phasing out problematic SUPs
The most significant step Malaysia can take is reducing unnecessary SUPs
to lessen the burden on the waste management system. In order to achieve
a circular economy for plastics, it is important to carefully consider what is
put into the market in the first place. This commitment recognises that
principle, and signals the intent of companies to actively identify problematic
and unnecessary plastic packaging in their portfolio and to take action to
phase-out those through redesign, innovation, and new (reuse) delivery
models.

The criteria listed below (but not limited to) is provided

to help identify problematic or unnecessary plastic items:

It is not reusable, recyclable

or compostable

It contains, or its manufacturing requires,

hazardous chemicals that pose a significant
risk to human health or the environment
(applying the precautionary principle)

It can be avoided (or replaced

by a reuse model) while maintaining
utility

It hinders or disrupts the recyclability

or compostability of other items

It has a high likelihood of being littered

or ending up in the natural environment.

The list will be prioritized based on consumption, impact and available

alternatives, developed through discussion with stakeholders. The process
of phasing out problematic SUPs will start with identification of national
problematic SUPs in 2022 and the overall phasing-out process will be done
progressively.

35
 2021-2030

3.2 25% post-consumer plastic

packaging to be recycled by 2025

2023 2025
15% 25%

This target aims to achieve a national plastic recycling rate of an This target was set based on the recent data on the recycling rate
average 25% for all locally generated post-consumer plastic for plastic packaging in Malaysia and feedback from the Malaysia
packaging waste. A systemic approach is required bringing Plastic Recycling Association and Malaysia Plastic Manufacturers
together businesses, government, and citizens – all playing key Association. Target number (3) on switching to 100% recyclable
roles in stimulating the system change and behaviour change will help achieve this target by having more
required to achieve this target. high-quality recyclable packaging for material recovery.

“Efforts and actions taken should be focusing on

domestic materials recovery by supplying high-
quality recyclables post-consumer plastic packaging
waste to the recycling sector, to reduce their
dependence on importation of plastic wastes from
other countries. Therefore, it is more crucial than
ever to improve domestic recycling in Malaysia.

3.3 100% recyclability of

plastic packaging by 2030

2025 2030
50% 100%

In a circular economy, waste and pollution are designed out, 100% recyclability rate of plastic packaging commitments are
products and materials are kept in use, ensuring closing the loop important, as the circularity of a packaging item starts with its
for a regenerative natural system. Each process, service, product design phase. While existing solutions are available and proven to
or packaging item needs to be designed to fit such ecosystem. be viable, further innovation in business models, packaging
This means that each piece of (plastic) packaging is designs, collecting, sorting, and recycling technologies will be
readily recyclable after several reuse cycles. required to achieve this commitment in a viable way that reduce
detrimental impact on the environment.
36
 2021-2030

3.4 15% average recycled content by 2030

Products and components are to be made from as much
recycled content as possible (where technically possible). This
supports reducing dependency on virgin (fossil) feedstocks and
creates a demand-pull for recycled plastics. It sets a clear

2023
direction to stimulate investments in the collection, sorting and
recycling industries. It is important that industries with
requirements for high-quality materials, such as the packaging

10%
industry, maximise the use of recycled content (keeping in mind
regulatory constraints, such as food contact and health and
safety regulations). Firstly, keeping materials at their highest utility
and value at all times maximises the number of possible future
use-cycles of the material. Secondly, because if all plastics were
to be recycled into lower-quality applications - the ‘high-quality
industries’ such as packaging would remain
dependent on continuous virgin material input.

This target was determined based on the latest commitment from

consumer brands on their ability to achieve a certain percentage
of recycled content in their packaging, much higher than the 15%
average, at about 25-30% at the moment. By taking into consid-

2025
eration the challenges faced by domestic producers and
small-medium enterprises (SMEs) to achieve similar commitment
levels to the MNCs, Government has proposed to lower the

13%
average recycled content target to 15% to ensure all producers,
including domestic producers/brands, are involved in achieving
similar goals.

The Government reserves

the right to revise the target
based on progress made at
2030 annual review points.

15% A dedicated target for each

category of material is to be
established by a think tank,
guided by industry input.

37
 2021-2030

3.5 76% average collected-

for-recycling (CFR) rate by 2030

2025 2030
40% 76%
The weighted average of the CFR rates of all key resin in A number of interventions must take place to increase the CFR
Malaysia for 2019 is 24%. This is very low compared to the global rate to 40% in 2025 and 76% in 2030, as follows:
rate. For example, the global CFR for PET is between 55% - 57%,
Increase sorting efficiency of post-consumer collection of
while ours is only at 28% - 45%. To ensure continuous supply of
plastics;
feedstocks and unlock maximum potential value from domestic
Set recycled content targets across all major end-use
plastic waste, average CFR rate across resin types need to reach
applications;
76% by 2030. Increasing collection for recycling is also key to
Mandate “sustainable design” standards for all plastics
reducing the level of mismanaged plastic waste in Malaysia from
application, especially packaging;
its current high level of 63%.
Encourage increase in recycling capacities (mechanical
and chemical)
Industry-specific requirements to collect post-use
products

3.6 Post-consumer halal rPET

standards by 2022
The halal rPET market is estimated to be worth of USD21.56
billion by 2028. However, current halal standards does not allow
for food-contact packaging made from recycled resin. As
mentioned in Section 2.4.3, the current development of Halal
Consumable Goods - General Requirements (MS2738:2021) will
chart the pathway for halal certification of products made from
recycled resin focusing on rPET through mechanical recycling.

Other key activities and targets are reflected in Figure 6.

38
 2021-2030

Figure 6

MALAYSIA PLASTICS SUSTAINA

Catalysing Sustainability and Circula
2021 2023 2025
PLASTIC BUSTERS Program
Identifying problematic Adoption of Voluntary EPR Setting
SUPs (2023 - 2025) minimum
threshold
Establishment of Think Tank Phasing out problematic of recycled
SUPs (2023-2030) packaging
Establishment of TWG for
data sharing platform
Inception of Voluntary EPR
(2021-2022)

MASPA MAREA
(2021 - 2023)

01 02

Inception of Voluntary EPR Adoption of Voluntary EPR

INSPiRE Program
EPR governance framework
(2022-2024) Mandating sustainable Full implem
design mandatory
CE Data Network Platform packaging
(2022-2025) Improvising plastic recovery
management and setting
Empowering informal Sector minimum threshold for CFR
(2022-2026) Mid-term
Increase demand for
recycled material review
(2024-2030)

2022 39
2024 2026
 2021-2030

ABILITY ROADMAP, 2021—2030

arity towards A New Plastics Economy
2027 2029
Setting minimum threshold
of recycled content for RESOURCES
automotive (2027-2029)
content for
(2025-2026)

WASTE

2 03

Start mandatory EPR by 2026 | Full implementation of mandatory EPR for packaging

R,D&I Funding

Market-based instrument and alternative financing

Training for SMEs (Module development and training program)

Communication, Education and Public Awareness (CEPA & Behavioral Change activities)

Circular Economy Award

mentation of Mandatory waste Setting minimum threshold

EPR for management plan (divert for recycled content for
plastic from landfill) for construction
construction sector
(2028-2029) Plastic's End-of-Life Vehicle
Scheme (Automotive)

2028 2030
40
 2021-2030

CHAPTER 4 - ROLES AND RESPONSIBILITIES

In Malaysia’s plastics value chain, there is a complex mix of
actors. For simplicity, the components are mapped against
three categories of up-, mid- and downstream activities.
Figure 7 presents a high-level overview of aggregated value
chains in the plastics industry across sectors, including the
Government key actors across the value chain, the social sector, and the
Social Sector government.

Value Chain Players

Upstream Midstream Downtream

Import/Production Design/Production Usage Collection/Sorting Treatment/Disposal

(plastic resin (intermediary or (incl. distribution) (recycle,dump,incinerate)
or intermediary products) final product)
Scrap importers
(recyclers)
Recyclers**(including
Wholesalers SME,NGO, informal)
Collectors (waste
Resin Producers Brand Owners management,
SME,NGO)

Made to Retailers Incinerators

order Tailgate sorters/
waste pickers/
scavengers*
Importers Plastic Converters
Consumers Landfillers

Aggregators

*informal sector ** including waste-to-fuel facilities

Financial Service Institutions (Commercial banks, venture capital, etc)

Academia (universities, research institutes)

NGOs (advocacy and research group)

International Organisations (development agencies, donor organisation, etc)

Ministries (e.g. KASA, KPKT,MITI)

Federal Departments/ Central Agencies (e.g. DOE, EPU)

State/local Authorities (e.g. Sabah state goverment, DBKL)

Figure 7: Overview of key stakeholders across Malaysia’s Plastic Value Chain

In the upstream segment, petrochemical companies and Financial service institutions help finance new business
importers make resins available as commodities to converters, endeavours, academia conducts research regarding circularity
while different industries procure and convert specific resins into solutions, while NGOs’ advocacy and research work typically
their semi-manufactured or final products, which are sold aims to promote targeted solutions. Understanding these actors’
domestically or exported abroad. In the midstream, consumers roles in shaping the value chain is important for allocating the
purchase products or services that involve plastics usage via roles and responsibilities as well as as mobilising resources for
retailers and wholesalers who distribute the goods. the implementation of this roadmap

In the downstream segment, formal and informal waste Malaysia will only be successful in building a circular economy for
management actors link households and businesses to EOL plastics in Malaysia if we take a whole-of-nation approach.
facilities, which range from landfilling to advanced recycling or
recovery plants. Furthermore, other stakeholders have cross-cut-
ting involvement or influence in the plastics value chain.

41
 2021-2030

Table 5 suggests roles and responsibilities of key players for each action plans.

Action Plan Action Plan

Phasing out problematic and unnecessary Implementation of Extended Producer Responsibility
single-use plastics (SUPs) (EPR) scheme for plastics

Expected Outcome Expected Outcome

5 problematic SUPs phased out Voluntary EPR scheme adopted (2021 – 2025)
Mandatory EPR scheme adopted nationwide by 2026
Roles and responsibilities of Government
Roles and responsibilities of Government
KASA leads the research effort with assistance from other
ministries/agencies to identify the items and principles or KASA and KPKT leads the effort to convene on establishing a
strategies needed. governance framework for EPR schemes in line with national
circular economy policy. This includes setting collection targets
The role of other ministries/agencies will be identified in the and obliged companies.
study itself.
KASA advocates and works on the implementation of EPR for
plastics in accordance with the governance framework.
Roles and responsibilities of Private Sector MITI provides technical advice on the identification of obliged
Brand owners and plastics manufacturers lead this initiative companies for the mandatory scheme.
through voluntary commitment to phase out and support the
plan, and look into other business models to provide alternatives MEDAC advises and guides SMEs in transitioning to circularity
to consumers. and implement EPR

KPDNHEP develops opportunities for distributors network/

Roles and responsibilities of Civil Sector businesses in the plastic value chain, and advise on EPR
Environmental NGOs continue to advocate and increase scheme effect on domestic market.
awareness among companies as well as consumers, and share
relevant feedback to government based on their engagement/ KKM advises on the food and product safety
findings on the ground
Other ministries/agencies advise and assist the
implementation of EPR in relevance to their jurisdiction

Action Plan Roles and responsibilities of Private Sector

Mandating sustainable design Producer Responsibility Organisation (PRO) represents
local and international brand owners active in the Malaysian
market will play the key role in advocating EPR, providing
Expected Outcome input on EPR governance framework and setting up the
50% of plastic packaging to be recycled modulated fees.

Trade / industry associations provide stakeholders feedback

Roles and responsibilities of Government on the governance framework and EPR implementation.
MITI leads and develops the standards that support the
sustainable design initiative Roles and responsibilities of Civil Sector
NGOs provide advocacy, dialogues between government
KASA provides technical advice for the standard development and industry, education and awareness.
Specific bodies/ agencies (e.g., CIDB, MARII, Automotive

Business Development Committee) of the sector as co- lead

of the initiative

Roles and responsibilities of Private Sector

Associations advocate members to adopt the sustainable
design standard in their design

Industry adopts and implements based on guidance available

Roles and responsibilities of Civil Sector

NGOs assist through advocacy, raising awareness and capacity
building, and as well outreach efforts

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Action Plan
Improvising plastic recovery and setting minimum
CFR rate

Expected Outcome
40% CFR rate by 2025
76% CFR rate by 2030

Roles and responsibilities of Government

KPKT leads with the initiative to develop mechanisms to improve
plastic recovery

State governments to co-lead the effort and advocate to the

concessionaires within the state.

KASA assists in setting direction to achieve the target set.

MOF advises on the appropriate financial instruments.

Roles and responsibilities of Private Sector

Waste management companies (i.e., the three concessionaires
in Act 672 states and private contractors in others) support the
implementation of such waste collection services.

Roles and responsibilities of Civil Sector

NGOs assist through advocacy, raising awareness and capacity
building, and as well outreach efforts

Action Plan
Increase demand for recycled material

Expected Outcome
Domestic demand for local recycled material increased

Roles and responsibilities of Government

Technical Working Group consists of JAKIM,
Standards Malaysia

KASA, and MOH work on revising current standards.

MOH reviews and revises current 1983 Food Act
(Act 281) based on current needs

MITI provides/promotes incentives scheme for Halal products as

to encourage the industry uptake

Roles and responsibilities of Private Sector

Industry players comply and start incorporating
recycled material in the production according to the standard

Manufacturing association design CEPA program on Halal

certification standards for awareness

Roles and responsibilities of Civil Sector

N/A

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Action Plan Action Plan

Setting minimum threshold of recycled content for Empowering Informal Sector
packaging
Expected Outcome
Expected Outcome Informal sector mainstreamed
15% recycled content in product by 2025
Roles and responsibilities of Government
Roles and responsibilities of Government KPKT integrates informal sector into the ecosystem
KASA provides technical input to the implementation
Specific bodies/ agencies of the sector as co-lead of the initiative KASA integrates participation of informal sectors within plastic
circularity efforts
Roles and responsibilities of Private Sector MITI provides incentives to recycling industries
Associations advocate members to incorporate recycled
content as feedstock during manufacturing processes
Industry set target collectively on the threshold Roles and responsibilities of Private Sector
of recycled content in packaging PRO & Recyclers bridge and encourage involvement of informal
sectors through various mechanisms
Roles and responsibilities of Civil Sector
PRO facilitates the responsibility of producers to take back
N/A
plastic waste from open market by engaging informal sectors to
recycle or process and the compliance

Roles and responsibilities of Civil Sector

Action Plan NGOs assist through advocacy, raising awareness and capacity
Alignment between MASPA and MAREA building, and as well outreach efforts to empower informal sector

Expected Outcome
Strengthen public-private collaboration

Roles and responsibilities of Government

KASA develops collaboration and workplan to synergise both
entities

Roles and responsibilities of Private Sector

MAREA advises and collaborate with KASA.

Industry provides inputs to the workplan.

Roles and responsibilities of Civil Sector

NGOs advises and collaborate with KASA

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Action Plan Action Plan

R,D&I funding Market-based instrument and alternative financing

Expected Outcome Expected Outcome

Local innovation and adoption of circular economy solution Number of companies adopting circular economy/ plastic
increased sustainability approach increased

Roles and responsibilities of Government Roles and responsibilities of Government

MOSTI (including MAGIC), MOHE and MTDC to improve MOF and MITI lead the effort to finalise the scope, level, and
access to funding plastics circularity projects/ solutions. eligibility of the incentives.

KASA (including MGTC) leads the update of green

Roles and responsibilities of Private Sector procurement criteria to cover products and provides technical
Companies across four prioritised sectors apply for R,D&I advice on material efficiency and refurbishment/
funding. remanufacturing related technologies.

Private industries to include R,D&I allocation for development

of plastic circularity solutions within organisation Roles and responsibilities of Private Sector
Companies provide stakeholder feedback on the scope of the
Start-ups and SMEs (e.g., via the SME Association of Malaysia) incentives, and green procurement scope and criteria.
that are eligible apply for the fund.
Financial service institutions facilitate the industry players
in financing applications and report on the progress to the
Roles and responsibilities of Civil Sector government.
Research institutions apply for R,D&I funding.
Roles and responsibilities of Civil Sector
Multilateral development institutions and donor organisations
NGOs enter strategic collaborations with national and local
provide financial support for the R,D&I scheme.
governments to provide technical guidance to businesses on:

i) the conditions for eligibility of incentives and encourage

them to adapt their business models to take advantage of
Action Plan the intervention.
CE Data Network Platform
ii) complying with the government's specifications.

Expected Outcome
Market data available and accessible

Roles and responsibilities of Government

KASA develops the platform and establish a technical
working group (TWG) that consists of experts to work together in
defining problems and issues regarding national plastic
circularity data. This TWG will be responsible to decide on:
Type of data including data
i) Type of data including data confidentiality, integrity and
sensitivity confidentiality, integrity and
ii) Sharing platform including open data
iii) Harmonised reporting sensitivity
Other ministries mandate their agencies and companies that fall
under their jurisdiction to submit the data and share available
information
Sharing platform including
Roles and responsibilities of Private Sector
Bursa Malaysia mandates reporting of plastic production/
open data
volume put in market and plastic sustainability efforts under its
sustainability reporting criteria (for listed companies)

Companies contribute information and data Harmonised reporting

Associations contribute and verify information and data

Industry representatives become part of TWG and contribute

relevant feedback to enhance the implementation of the
platform

Roles and responsibilities of Civil Sector

NGOs encourage companies to report/ contribute data

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Action Plan Action Plan

Training for SMEs Circular Economy Award

Expected Outcome Expected Outcome

Number of local SME personnel trained in CE increased Improved corporate action

Roles and responsibilities of Government Roles and responsibilities of Government

KASA and MGTC to develop the training module and KASA establishes and organises the award and its
programme. criteria

MEDAC and SMECORP support the programme by SME enhances criteria of related current award schemes to
providing the training need analysis and promote it to include plastic sustainability.
the SMEs.

MITI (MPC) facilitates best practices and productivity Roles and responsibilities of Private Sector
among SMEs Associations disseminate and encourage its members to
qualify for the award.

Roles and responsibilities of Private Sector

Industry players participate in the training programme and Roles and responsibilities of Civil Sector
provide feedback where relevant. NGOs to assist in developing the criteria and disseminate
information about the award.

Roles and responsibilities of Civil Sector

Relevant NGOs to assist in content development and
promotion where relevant

Action Plan Action Plan

PLASTICBUSTERS Program INSPiRE Program

Expected Outcome Expected Outcome

Create awareness among public servants as well as public to Create success stories for Malaysia sustainability and circularity
prevent unnecessary use of plastics, and practice initiatives
good plastic management

Roles and responsibilities of Government

Roles and responsibilities of Government KASA implements the program to nudge industrial
KASA leads the initiative, developing implementation guideline behavioural change
for civil service.

Other ministries replicate and implement the program. Roles and responsibilities of Private Sector
Interested companies participate in the program as role model
/catalyst for a sustainable plastic value chain
Roles and responsibilities of Private Sector
Business operators in the government premises support the
initiative through suitable means, in line with the guidelines Roles and responsibilities of Civil Sector
provided. N/A

Roles and responsibilities of Civil Sector

NGOs advocate the importance of plastic circularity and create
awareness.

Action Plan
Roles and responsibilities of Private Sector
Communication, Education and Public Awareness Industry players and Association collaborate with government
(CEPA) and Behavioural Change Programmes to organise and disseminate relevant information to industry
players/ public
Expected Outcome
Roles and responsibilities of Civil Sector
Improved corporate action and behavioural change
NGOs collaborate with government to organise and disseminate
relevant information to industry players/ public
Roles and responsibilities of Government
KASA and other relevant ministries organise CEPA and
behavioural change program

46 Table 5: Implementation and resource mobilisation plan

 2021-2030

CHAPTER 5 - WAY FORWARD

With this Plastic Sustainability Roadmap, Malaysia enters a new
era of progress towards a circular and sustainable economy for
plastics. This Roadmap sets out a robust and clear way forward
underpinning our Malaysia’s contribution in tackling the global
challenge of plastic pollution. In consultation with industry, civil
society and other stakeholders, the Government will ensure that
the Roadmap is carried out and the specific actions identified
are delivered. Clear governance architectures will be put in
place to oversee and steer the implementation of the Roadmap.

5.1 National Governance for

Plastic Circularity
5.1.1 National Steering
Committee (Joint Steering
Committee)
The implementation of this Roadmap will be reported as one of
the key agenda under the National Steering Committee for
Roadmap towards Zero Single-Use Plastics, 2018 – 2030.

5.1.2 Technical Committee

A technical committee will be established to oversee the overall
implementation of this Roadmap. This committee will work
together with the dedicated division under KASA.

Specific committee(s) may be established to address specific

action plans/technical issues.

5.1.3 Think Tank

“New plastic economy” definition;
A strategic Think Tank comprising government representatives,
industry experts, academia, and civil society organisations will be Target setting;
established. This think tank will look into identifying collective Market forces;
interests and coordinate across different stakeholders to catalyse
Cost-pass through;
action towards plastic sustainability, specifically on
(but not limited to): Microplastics issue;
Standards harmonisation;
Creating sustainable demand for recycled resin;
Multi-disciplinary research on plastic
(social, economy and environment); and
EPR mechanisms.

47