Players evaluate the plastic bag ban in Malaysia

In Malaysia, the use of free plastic bags was banned in Selangor, Malaysia as of January 1, according to media reports. However, single-use plastic bags are still sold to shoppers at stores for 20 sens and the shoppers with many items are provided free cardboard boxes.

Following the decision, Malaysian PE players evaluated the case and shared their comments.
A converter said, “We think that the local demand is quite bad after the government’s decision on banning usage of plastic bags, particularly for big manufacturers.”

A trader opined, “The government started to ban plastic bags. Use of biodegradable plastic is still allowed but requires payment. We think that end-users prefer not to use them as biodegradable products are expensive.”

A plastic end product manufacturer commented, “We think demand for plastic will slow down by 30-50% this year on the back of the new government policies such as ban of plastic bags as well as encouraging use of biodegradable plastic which causes double costs. Plus, the endurance of biodegradable plastic is only 9 months to 2 years with good protection. Along with the increasing levy for foreigner workers, 2017 may be another year of crisis especially for big manufacturers since demand is weaker, costs are higher and profit is reduced.”

Another converter stated, “Timing of the new policy on use of biodegradable plastic is wrong. We think that a lot of manufacturers will face an economic burden as the converter side is not able to reflect extra costs to customers.”