Chemicals Advance Materials – Plastic Products

The plastic products industry in Malaysia exhibited robust growth throughout 2022, aligning with the global industry’s projected CAGR of 3.7% from 2022 to 2030. Exports of plastic products rose to RM17.3 billion, an 8.8% increase from 2021’s RM15.9 billion. Total trade reached RM32.8 billion, reflecting an 11.6% surge compared to RM29.4 billion in 2021. Collaborating with stakeholders like the Malaysian Plastics Manufacturers Association (MPMA), MIDA actively engaged plastic products manufacturers, particularly SMEs. The MIDA-MPMA Conference 2022 facilitated awareness of government support and assistance tailored for the plastic products sector, encouraging technology acquisition, skill development, and marketing enhancement.

In the coming years, the industry envisions investment prospects in high-end plastic products and engineering plastics, along with plastic recycling bolstered by advanced waste management infrastructure. Focusing on mechanical and molecular recycling, the industry aims to expand plastic recycling capabilities. Mechanically recycling a broader spectrum of plastic types through improved technologies is sought, while molecular recycling, encompassing purification and depolymerisation, targets various plastic waste streams, promoting their reuse. Plastic waste recycling aligns with the Promotion of Investments Act 1986, rendering investors potentially eligible for Pioneer Status or Investment Tax Allowance.

In line with global ESG efforts, the plastic industry pursues energy reduction, enhanced recycling, and waste reduction. On the national level, the Malaysian Government introduced a Circular Economy Roadmap to combat inadequately managed plastic waste. Released by KASA in December 2021, the Malaysia Plastic Sustainability Roadmap, 2021-2030 serves as a comprehensive strategy to address plastic waste concerns.