Malaysia to focus more on pollution charge on single-use plastics by 2021

2 min readUpdated May 16, 2025Oct 18, 20185:13 AM

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The government is working towards implementing a pollution charge for single-use plastics which will be imposed on fixed premises at a rate of 20 sen or higher, to be determined by state governments through local councils. They include premises such as hypermarkets, supermarkets, department stores, convenience stores, fast food restaurants, petrol station convenience store, chain stores and pharmacies.

Minister of Energy, Science, Technology and Climate Change Yeo Bee Yin said the federal government is giving state governments the liberty to determine the rate, and to decide the implementation time frame between 2019 until 2021, marking the first phase of the Roadmap Towards Zero Single-Use Plastics 2018-2030, which was launched in conjunction with the Greentech & Eco Products Exhibition & Conference Malaysia (IGEM 2018) today.

“We have already engaged with the ruling government states as well as the opposition states. Everyone has already agreed to the plan and said they want to do this as well together,” she said at the event.

Yeo said the goal is to address the lack of uniformity in the use of single-use plastics with such initiatives already being in effect in some states and result in the improvement and increase in the production and use of bio-degradable bags.
She believes the charges will not be passed on consumers but instead encourage a change in behaviour and lead to people eventually using shopping bags.

Yeo said the money collected from the levy will be ploughed back for green initiatives, creating awareness and reusable shopping bags.

Phase two of the roadmap which will go on between 2022 and 2025 may see the levy being extended to manufacturers and non-fixed premises.

“Phase two of the roadmap which will go on between 2022 and 2025 may see the levy being extended to manufacturers and non-fixed premises.”

Meanwhile, the government has cancelled 155.7256 megawatts (MW) of renewable energy feed-in tariff (FiT) projects due to unfavourable response in September 2018 and instead opened up 114.5682 MW FiT projects for qualified applicants.

Additionally, the Sustainable Energy Development Authority of Malaysia rolled out the country’s first solar photovoltaic (PV) monitoring system, which is a database connected to grid’s nationwide meant to monitor the performance of solar PVs on a real-time basis.

Keeping up with that, the country’s first insurance plan for solar PVs was launched this week.

The initiative is under Seda in collaboration with Allianz Malaysia Bhd and the Malaysian Photovoltaic Industry Association. This scheme is aimed at protecting residential solar PV users.

On another note, the government will introduce Building Energy Intensity labelling as part of its efforts to promote voluntary adoption of energy efficiency in the building sector. This is along with a renewed push for the adoption of energy performance contracting for government buildings next year.

Yeo said capital for the retrofitting projects will be derived from the private sector, with any cost savings derived to be shared between both parties.
She said there can be savings if the government is able to save some 20% of its annual electricity costs. This in turn will translate into a return of investment and profit for investors.

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What this means

Malaysia's decentralised approach to its single-use plastic pollution charge, allowing states to determine rates and timelines, presents a significant operational challenge for multi-outlet retailers. While the government aims to avoid passing costs to consumers, this is unlikely given the fragmented implementation. Unlike the concentrated store expansions seen with ZUS Coffee in Malaysia or Panpuri across Asia, this policy creates a varied compliance landscape. Retailers will face differing costs and regulations across states, necessitating complex adjustments to supply chains and consumer-facing practices. This move pressures businesses already adapting to regional environmental initiatives. The key challenge will be the uniform application of charges across competitive environments. Watch the implementation details from state councils, particularly the actual rate and start date.

Wei Zhang · Retail News Asia newsroom

Questions & Answers

Which types of businesses will be affected by the pollution charge on single-use plastics?

The charge will be imposed on fixed premises such as hypermarkets, supermarkets, department stores, convenience stores, fast food restaurants, petrol station convenience stores, chain stores, and pharmacies.

When will the pollution charge for single-use plastics be implemented and at what rate?

State governments have the liberty to decide the implementation time frame between 2019 and 2021, and to set the rate at 20 sen or higher for fixed premises.

What is the federal government's goal with the new pollution charge on single-use plastics?

The goal is to address the lack of uniformity in single-use plastic initiatives across states, encouraging behavioural change and leading to increased use of reusable shopping bags.

How will the money collected from the single-use plastics levy be utilised?

The money collected from the levy will be reinvested into green initiatives, used for creating awareness campaigns, and for providing reusable shopping bags.

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