Malaysia's Progress in Establishing EPR

Malaysia is still in the midst of shaping an Extended Producer Responsibility (EPR) policy framework. As part of this effort, the Malaysian government has outlined a series of strategies and action plans aimed at integrating EPR into the country's waste management system, with the broader goal of fostering a more circular economy.

The Twelfth Malaysia Plan 2021-2025 highlights EPR as a key strategy for promoting green initiatives and circular economy principles, ensuring sustainable and resilient socioeconomic growth.

The Ministry of Housing and Local Government (KPKT) has introduced several policies to drive EPR adoption:

National Cleanliness Policy (2020-2030) advocates for EPR implementation and the deployment of Reverse Vending Machines (RVMs) to encourage recycling.
Circular Economy Blueprint for Solid Waste (2025-2035) establishes a Circular Economy Strategic Framework with 20 Circular Economy Initiatives (CEIs), reinforcing EPR as a core strategy.

The Malaysia Plastics Sustainability Roadmap 2021-2030 further positions EPR as a crucial policy tool for a sustainable plastics economy. It sets ambitious national targets, including:

25% of post-consumer plastic packaging to be recycled by 2025.
100% recyclability of plastic packaging by 2030.
15% average recycled content in plastic packaging by 2030.
76% collected-for-recycling (CFR) rate by 2030

To further support plastic waste recycling practices and to increase the collected-for-recycling rate, the Malaysian government has also introduced tax deductions to be given under subsection 34(6)(h), Income Tax Act 1967. The Ministry of Finance has issued detailed Guidelines on Tax Deduction under Section 34(6)(h) of the ITA 1967 for Contribution/Sponsorship of Smart AI-Driven Reverse Vending Machines (available in Bahasa Malaysia) and this initiative was extended in Budget 2025 Appendix 12.