Deputy minister calls for local materials to replace plastic and PET imports amid West Asia conflict disruptions, with incentives to support industry growth.
SHAH ALAM: Malaysia needs to strengthen the resilience of the recycling industry’s supply chain by utilising local materials as a source of raw materials to reduce dependence on plastic and polyethylene terephthalate (PET) imports, urged Deputy Investment, Trade and Industry Minister Sim Tze Tzin.
Sim said the West Asia conflict had affected the supply of raw materials and increased costs for local recycling companies, manufacturers, and factories that depend on imported plastics and PET.
“We can no longer rely on imported materials from abroad and need to boost productivity in the country.
“Hence, this expo is very important for local recyclers and producers to collaborate,” he told reporters after the launch of the Malaysia Waste Management and Recycling Expo 2026 (MyWare) and Malaysia Logistics Warehouse Expo 2026 (MyLog) here today.
Also present at the event was Ministry of Housing and Local Government (KPKT) secretary-general Datuk Dr M Noor Azman Taib.
Sim said the country’s current recycling performance is approaching 40%, but the goal still has ample room for improvement through industry investment in modern facilities to boost productivity.
He said steps to optimise recycling waste are very critical, especially in landfill areas, which are always filled with recyclable materials.
He said that, as an initial step, the government has introduced the extended producer responsibility initiative since January 2026 under KPKT and the circular economy action plan, under which manufacturers whose products are not recycling-friendly will be charged a fee.
“Statistics show that about 40% of daily waste, or around 15,000 tonnes, is recyclable materials such as plastic, paper and metal.
“But every year about RM500 million worth of materials is dumped in landfills, even though these can be recycled to increase their value,” he said.
Sim said that, to support the transition, the Ministry of Investment, Trade and Industry (MITI) is now setting active targets to accelerate the industry’s progress through the New Incentive Framework.
He said MITI has replaced the one-size-fits-all policy with the National Investment Aspirations Scorecard (NIA), which effectively makes environmental, social and governance performance for business growth more enduring.
He said recycling-friendly companies are eligible for special tax rates ranging from zero to 15%, or investment tax allowances of up to 100% for qualifying capital expenditures.
“For those investing specifically in green infrastructure, the green investment tax allowance and green income tax exemption are still available, with the benefit of an allowance of up to 100% for green assets or a 70% tax exemption for green services.
“For local businesses that are ready to change but are concerned about capital, the Malaysian Industrial Finance Development Finance Bhd also provides financial assistance through the Sustainable Green Business Financing facility,” he said.
