- In Q12024, the plastic industry recorded RM565 million in approved investments, projected to generate 1,018 new job opportunities.
- Emphasis on advancing towards a circular economy with increased recycling activities and new markets for advanced recycling technologies.
- Continued partnership between MIDA and MPMA to drive innovation and sustainable practices in the plastics sector.
The Malaysian Investment Development Authority (MIDA) and the Malaysian Plastics Manufacturers Association (MPMA) co-organised the MIDA-MPMA Conference on Government Facilitation and Assistance for Circular and Low Carbon Economy at Avante Hotel, Petaling Jaya today. With almost 100 participants, the Conference was successfully organised to provide insight into various government policies, facilitations and assistance for the manufacturing sector specifically the plastic industry.
The MIDA-MPMA Conference featured sessions by speakers from the Ministry of Investment, Trade and Industry (MITI), Ministry of Economy, Malaysian Investment Development Authority (MIDA), Malaysia External Trade Development Corporation (MATRADE), Bursa Carbon Exchange, Alliance Bank, and Argus Media.
The plastics industry, intricately linked with Malaysia’s economic growth, has evolved into a high-tech, capital-intensive sector. Its versatility is showcased in products across various industries, making it a cornerstone for sectors like E&E, automotive, aerospace, medical devices, and food packaging.
In 2023, the plastics industry attracted RM4.1 billion in investments across 81 projects, with RM3.21 billion (78%) from foreign sources and RM889 million (22%) from domestic sources. These projects are expected to create 4,249 job opportunities. In Q1 2024, the industry recorded RM565 million in investments, projected to generate 1,018 job opportunities.
MIDA Chief Executive Officer, Mr. Sikh Shamsul Ibrahim Sikh Abdul Majid, stated, “The growth and transformation of the plastics industry in Malaysia are remarkable, showcasing our nation’s commitment to innovation and sustainability. As we advance towards a circular economy, we see a significant increase in recycling activities, creating new markets for advanced recycling technologies. Our continued progress in this sector is a testament to Malaysia’s dedication to environmental stewardship and economic growth. Malaysia is committed to achieving net zero carbon by 2050. To this end, MIDA is working closely with MPMA to drive industry collaboration and understand the demand and supply of recycled plastic resources, which are crucial for many industry players in their decarbonisation efforts.
He added, “For companies that wish to partake in this journey but are unsure how to get going, they can take advantage of the Automation Capital Allowance, which has been extended until 31 December 2027 and enhanced to cover Industry 4.0 elements, with the capital expenditure limit increased to RM10 million. Additionally, MIDA has introduced the Domestic Investment Accelerator Fund (DIAF), a matching grant aimed at local SMEs and Mid-Tier Companies to foster automation, digitalisation, and ESG practices, and the Foreign Investment Accelerator Fund (FIAF) to facilitate the transfer of high-tech know-how through R&D and training initiatives.”
Speaking at the opening of the Conference, Mr. CC Cheah, President of MPMA said that the main challenge facing the industry is many of the plastics are disposed after used. Therefore, enhancing the recycling rate will help to reduce the plastics pollution issue in our country but this effort must be supported by a holistic approach, e.g. from product design to segregation at source, effective waste collection system and well-managed recycling plants. The development of these infrastructure facilities requires support from all stake holders from the resin producers to plastics convertors, the public at large and the Government.
“MPMA has recently proposed a Plastics Neutrality Masterplan which provides thought leadership to drive towards zero plastics to landfills by 2050. In Malaysia, achieving plastic circularity and neutrality poses several formidable challenges. The Masterplan addresses the challenges by promoting a multi-faceted approach, involving policy reforms, investments in infrastructure, public education campaigns, and collaboration among stakeholders across the plastics value chain. The Masterplan reinforces the industry’s commitment to address concerns related to plastics, by making plastics circular, driving lifecycle emissions to net zero, and fostering the sustainable use of plastics,” added Mr Cheah.
At the Conference, Mr. CC Cheah said that the plastics industry is fully supporting and committed to playing a vital role in contributing towards the country’s target of becoming a carbon-neutral nation by 2050. The plastics industry has started to use solar power as an input of its energy mix several years ago by installing solar panels on the factories’ rooftops to generate solar power. With the implementation of the targeted subsidy, electricity costs have increased substantially. This will encourage more plastics companies to increase their usage of renewable energy the industry is very fortunate to be able to learn from knowledgeable and resourceful speakers on the various types of Government assistance and facilitations. As such, plastics companies are looking for more green energy options such as participating in the Corporate Green Power Programme. MPMA hopes that the Energy Authorities could provide more options and channels in the future so that more green.
The ongoing collaboration between MIDA and MPMA is set to continue driving Malaysia’s advancements in the plastics industry, ensuring sustained progress and innovation.