What challenges does the Malaysian plastics industry face from global supply chains?

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The Malaysian plastics industry is facing cost pressures from global supply chain disruptions.
The Malaysian Plastics Manufacturers Association (MPMA) has highlighted that the industry is dealing with challenges linked to global supply chain pressures, alongside rising raw material costs. In a briefing to the National Economic Action Council (NEAC), the Economy Minister said the government is taking a serious view of these issues and that MPMA’s proposals include concerns about cost structures and competitiveness for downstream manufacturers.
Global supply chain pressures are affecting operations and costs
The government’s discussion with NEAC centred on challenges faced by the plastics industry following global supply chain pressures. These pressures are occurring alongside rising raw material costs, which the minister described as a significant concern for the industry.
Rising raw material costs are a major concern
MPMA presented views on cost structure and competitiveness issues, including differences in raw material costs compared to competing countries. The minister said the proposals were being examined with attention to the interests of the entire industrial chain and the country’s long-term economic competitiveness.
Competitiveness gaps tied to raw material pricing are being raised
A specific issue raised in the MPMA presentation was the difference in raw material costs compared with competing countries. This focus indicates that downstream manufacturers face competitiveness concerns linked to how raw material costs compare across markets.
The impact is framed within the wider plastics market sectors
The minister also placed the industry within the broader plastics market, noting that packaging accounts for 45% of the market and electrical and electronics account for 29%. He said the overall sales value of the plastics industry was RM62.69 billion in 2025, compared with RM64.78 billion in 2024, while the government reviewed the proposals as part of addressing the cost and competitiveness concerns.

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What challenges does the Malaysian plastics industry face from global supply chains?

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