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Why plastic scrap demand outstrips supply in Malaysia?
2021-05-19
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As one of the major plastic manufacturers in Southeast Asia, nearly half of Malaysia's output is exported to the European Union, Asia, the Middle East and other countries around the world.  

The total output value reached RMB 2.4 billion  

In the first half of 2018, Malaysia's plastics industry generated a total output value of Rm1.465 billion (2.427 billion yuan) and exports of Rm760 million (1.17 billion yuan), accounting for about 48% of total production.  

The main export products are primary plastics, plastic containers, plastic plates, film, plastic sheets, plastic foils, plastic strips and other plastic products, so Malaysia also has a high demand for plastic scrap.  

It is understood that the price of a ton of waste plastic imported from abroad is only one third of the price of imported plastic raw materials, and the processing cost is only one half of the raw materials used.  

"There are two sides to any business activity. For Malaysia's plastics industry, the supply of plastic waste cannot meet the demand," Cheah See Joon, deputy chairman of the Plastic Manufacturers Association of Malaysia, told Financial Times.  A medium-sized plastic processing plant can digest more than 20,000 tons of plastic waste every year, and we currently have more than 100 plastic waste processing plants in the country."  

"Malaysia's plastic products are among the best in the world because we strictly follow international standards," he added.  We also import plastic pellets from other countries to meet the huge market demand, but from a cost saving point of view, a total ban on the import of waste plastics would have a negative impact on plastic processing companies."  

But imports of waste plastics is Malaysia's environment caused great pollution, especially in the process of waste plastics recycling the water that is used in the cleaning of the environmental impact is very big, the Malaysian government in recent years also vigorously regulation and restrictions on imported waste plastics and plastic processing market, strictly control the import of issuing waste plastics approval permit.  

In fact, Malaysia does not completely ban the import of waste plastic waste, but prohibits mixed waste plastic, because even if they are processed into plastic particles, the quality is very poor, and the foreign waste that cannot be treated can only go to landfill, which has a great impact on the environment.  

Many plastic waste processing plants in Malaysia are equipped with sewage treatment equipment. The filtered sewage is not only non-toxic, but also can be used to raise fish, which not only shoulder social responsibilities but also ensure the economic benefits of the enterprise.  

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