Malaysia Officially Bans U.S. Plastic Waste Imports
On July 1, 2025, Malaysia formally announced a comprehensive ban on plastic waste imports from the United States, a major exporter of plastics, to lose one of its most important downstream processing countries in Southeast Asia. According to analysis data from the Basel Action Network, the U.S. exported over 35,000 tons of plastic waste to Malaysia in 2024.
In fact, Malaysia intercepted over 100 illicit waste containers labeled as "raw materials" last year. Environment Minister Nik Nazmi made it clear that "we do not want Malaysia to become the world's garbage dump."
The revised Tariff Act of Malaysia directly prohibits the import of plastic waste from countries that have not signed the Basel Convention (e.g., the U.S.), and sets extremely strict import thresholds for other countries: only single-polymer plastics are allowed, and the contamination rate must not exceed 2%. This standard is almost equivalent to effectively blocking any mixed waste stream from the consumer end.
Game and Cost Under Industry Turbulence: Recycling Capacity, Policy, and Brand Pressure
America's Plastic Makers, an organization representing the American plastic industry, responded, "Our industry remains focused on expanding the use of recycled plastic in new products. These efforts support U.S. jobs, economic growth, resource conservation, and plastic pollution prevention."
In Malaysia, some plastic processing associations are calling on the government to reserve an exception channel for "clean and recyclable" imported plastics, citing that large brands have set hard targets for the proportion of recycled materials used and there is a real demand in the industry chain.
Similar goals have also emerged in the beauty and personal care industries. Many international brands promised to increase the content of PCR (Post Consumer Recycled) in their sustainable development reports for use in products such as shampoo bottles, face cream packaging and skin care tubes. These packaging highly relies on recycled PET, PE and PP materials.
Plastic Crisis Solution: Beyond Recycling to Source Reduction
At present, the United Nations Global Plastics Treaty is being negotiated among multiple countries, and some regions have suggested setting a global cap on plastic production. Relevant policies may include: restricting the production of disposable plastics; promote the Extended Producer Responsibility (EPR); improve packaging design to reduce material consumption; set a minimum regeneration content standard.
In the U.S., states are also pushing for relevant legislation. For example, starting from July 2025, Illinois will prohibit large hotels from using disposable toiletries packaging. And in Delaware, foam foodware, plastic stirrers and skewers are simultaneously prohibited, and straws must be requested by customers.
Currently, the world produces nearly 500 million tons of plastic annually, more than double the amount from twenty years ago. Less than 10% of the plastic recycled in the U.S. is discarded, and the rest ends up in landfills, burned, or shipped overseas. For the beauty and personal care industry, Malaysia's decision marks a new stage in packaging sustainability strategy. Brand owners need to reassess their recycling material supply chain and may need to seek alternative sources or invest in local recycling infrastructure to fulfill their sustainable packaging commitments.
