Kuala lumpur: The National Economic Action Council (NEAC) has acknowledged several proposals submitted by the Malaysian Plastics Manufacturers Association (MPMA) and has tasked the Ministry of Investment, Trade and Industry (MITI) along with the Economy Ministry to evaluate these proposals. Economy Minister Akmal Nasrullah Mohd Nasir emphasized the government's concern over the challenges confronting the plastics industry due to global supply chain pressures and increasing raw material costs.
According to BERNAMA News Agency, the NEAC meeting included a presentation from the MPMA, which addressed issues related to cost structure and competitiveness faced by downstream manufacturers, notably the disparity in raw material costs compared to other competing countries. The proposals aim to balance the interests of the entire industrial chain, fiscal stability, and the nation's long-term economic competitiveness. Akmal Nasrullah highlighted on the ministry's Facebook page the critical role of the plastics industry as a supporting sector for various industries, with its sales value projected to reach RM62.69 billion in 2025, down from RM64.78 billion in 2024.
He further elaborated that packaging constitutes 45 percent of the market, while electrical and electronics account for 29 percent. The government is considering the voluntary implementation of Extended Producer Responsibility (EPR) and its implications, particularly concerning the capacity of small and medium enterprises and the readiness of recycling infrastructure. Successful implementation could foster a circular economy, increasing the use of recycled materials, reducing reliance on raw materials, and creating a domestic supply source more resilient to geopolitical shocks.
Minister Akmal Nasrullah expressed confidence in maintaining the country's economic growth momentum, aiming for a growth target of 4.0 to 5.0 percent based on current performance. Economic indicators from the first half of the year demonstrate that Malaysia's economic fundamentals remain robust. The economy grew by 5.4 percent in the first quarter of 2026, driven by domestic demand and resilient performance in the services, manufacturing, and electrical and electronics export sectors.
Preliminary estimates for the Gross Domestic Product (GDP) for the second quarter of 2026 will be disclosed on July 17, with the official figures to follow on August 14, 2026. Inflation remained controlled at 2.0 percent in May 2026, compared to 1.9 percent in April, while trade performance surged by 18.3 percent, reaching nearly RM1.5 trillion from January to May 2026. Exports saw a 24.3 percent increase to RM793.8 billion, imports rose by 11.8 percent to RM661.1 billion, and the trade surplus stood at RM132.8 billion.