In July 2025, Malaysia’s Federal Government has officially banned plastic waste imports from 16 countries, including the United States. This move, which encompasses recycled plastics commonly used in cosmetics and personal care packaging, disrupts a key supply chain channel for the local industry.
The cosmetics sector relies heavily on plastic packaging, from shampoo bottles to cosmetic jars. With imported recycled plastics now restricted, companies are facing both supply shortages and rising costs. The ban has also highlighted the need for sustainable alternatives, such as biodegradable or compostable packaging, which could reduce reliance on traditional plastics.
The government has introduced pre-inspections for shipments, requiring plastics to meet contamination thresholds and to be sent only to authorized recycling facilities that comply with sustainability standards. Malaysia’s move follows similar bans in neighboring Thailand and Indonesia, while China set a precedent with its 2018 ban.
For cosmetic manufacturers, this policy may accelerate the transition to locally sourced, sustainable packaging while encouraging innovation in biodegradable materials—a step that could benefit both the industry and the environment in the long run.
Our Network’s Opinion
Ms Selina, Manager at a Cosmetic Producer:
“Plastic is still central to our packaging, and this ban pushes us to rethink sourcing. We are exploring more local suppliers and eco-friendly materials, but it is a challenge to balance sustainability with cost and quality standards. This could be an opportunity to innovate, but it requires investment and time.”
Mr Ong, Manager at a Bio-Compostable Plastic Packaging Producer:
“The ban opens up a huge opportunity for local businesses like ours. More cosmetic companies are now considering biodegradable packaging, which is better for the environment and aligns with growing consumer expectations. However, scaling production to meet sudden demand will be challenging in the short term.”
Ms C, Student and Environmentally Conscious Consumer:
“As a consumer, I want to support products that are environmentally responsible. It’s encouraging to see Malaysia take a firm stance, but I hope companies don’t just switch to ‘greenwashing’ tactics. Transparent use of sustainable materials and proper recycling systems is key.”