Malaysia's Housing and Local Government Ministry plans to make some manufacturers — depending on their size — report the recycled content of plastics, paper, metal, used beverage cartons and glass in their products by 2030.

While there is increased demand for recycled resin, it cannot always replace virgin resin. The usage of recycled resin is limited to certain categories of plastic products.

Mike Tan, chairman of the Malaysian Plastics Manufacturers Association's Johor branch, said: "High-precision electronic components and medical devices, including some personal protective equipment, often require virgin resin due to its superior heat resistance and robust insulating properties."

An industry veteran said the toughness of plastic resin is reduced each time it is recycled.

"Household products can use more recycled plastic resin, as at most it affects the color with a lower risk of breaking. But automotive products need higher-quality material, as recycled resin may not provide long-lasting durability," said the 41-year-old, who wanted to be known only as Chia.

Before its recent uplift in prospects, Malaysia's plastic recycling industry had been under scrutiny over contaminated plastic scrap imports.

In 2019, then Environment Minister Yeo Bee Yin vowed that Malaysia would not become a dumping ground for overseas plastic waste and pledged to return illegal shipments to their countries of origin.

According to 2025 data from the United Nations Commodity Trade Statistics Database, Malaysia imported $162 million worth of plastic scrap weighing nearly 460,000 tons, making it the third-largest in the world behind only the Netherlands and the US. This value has tripled from a decade ago.

To clamp down on the smuggling of plastic waste, Malaysian officials in February proposed a three-month moratorium on plastic imports before making a final decision on whether or not to import plastic waste at all.

The United Nations Development Programme estimated Malaysia produces over 1 million tons of plastic waste annually, of which a mere 10 percent is recycled.

"If you ask me, there may be no need to import plastic waste at all," outgoing Malaysian Anti-Corruption Commission Chief Azam Baki, who is leading the clampdown on illegal e-waste and plastic waste, said on April 2. He said that improving domestic waste management systems could eliminate the need for imports altogether.

In July 2025, Malaysia further restricted the import of plastic waste by insisting on pre-shipment inspections in exporting countries to address the health and environmental risks linked to illegal or poorly managed plastic waste practices.

But two researchers at Monash University Malaysia — Associate Professor Saman Ilankoon and his PhD student Shafeeq Ahmed Syed Ali — said if domestic plastic waste is not separated at its source, "it does not produce enough good quality and uncontaminated feedstock for the local industry".

"Meanwhile, imported homogeneous plastic sources offer higher-quality feedstock for producing high-value resin and generating sustainable profit margins."

In March, Malaysian Plastics Manufacturers Association President Cheah Chee Choon made the same point when appealing against a proposed moratorium on plastic waste imports — imported plastic waste is generally pricier but of higher quality than local waste.

Aushal's company imports 70 to 80 percent of its feedstock, with the remainder sourced locally.

The two-decade veteran in plastic recycling said imports remain essential, as they are consistently supplied and largely derived from postindustrial production, whereas local feedstock consists mainly of more contaminated post-consumer waste.

In the long term, Aushal is optimistic about the prospects of the recycled plastics industry.

"The shortage of virgin resin has pushed many to increase the use of recycled materials in their products. As a result, the future demand for recycled materials is expected to grow, with manufacturers better understanding their composition," he said.

THE STRAITS TIMES, SINGAPORE