MALAYSIA’S plastics manufacturing industry is expected to face a challenging business environment throughout the year as uncertainty over raw material prices and potential additional tariffs by the United States create fresh pressures on producers.
Malaysian Plastics Manufacturers Association (MPMA) president Cheah Chee Chon said rising uncertainty had affected companies’ ability to plan production and manage costs, particularly as fluctuations in raw material prices created risks for inventory management.
“Some manufacturers may purchase large quantities of raw materials when prices are high. However, when prices suddenly fall, they are left with inventories bought at higher costs. Therefore, the current situation is extremely challenging,” he said in an exclusive interview with RTM.
He said the proposed additional US import duties of between 10 per cent and 12.5 per cent on selected countries had also raised concerns among local plastics manufacturers, particularly those dependent on exports to the American market.
“If no solution or agreement can be reached with the United States, Malaysia may face certain import tariffs when exporting products to the US.
“This could affect Malaysia’s economy as well as the global economy. This is among the challenges that I expect the Malaysian plastics industry will continue to face,” he said.
Cheah urged industry players to diversify their sources of raw materials, increase automation and optimise operating costs to remain competitive amid a more uncertain global trading environment.
The United States had earlier proposed imposing additional import duties on products from 60 countries, citing concerns that some nations had failed to address trade involving goods produced using forced labour, government subsidies and environmental compliance issues.
Last week, the National Economic Action Council (MTEN) decided that the Ministry of Investment, Trade and Industry (MITI), together with the Economy Ministry, should study proposals submitted by MPMA to address global supply chain pressures and rising raw material costs.
Economy Minister Akmal Nasrullah Mohd Nasir said during a Global Supply Crisis Briefing that the plastics sector remained a critical supporting industry for multiple economic sectors.
In 2025, Malaysia’s plastics industry recorded sales worth RM62.69 billion, compared with RM64.78 billion the previous year. - July 20, 2026
