Not Just in Indonesia, Plastic Prices in Malaysia Also Rise 40 Percent

KUALA LUMPUR, KOMPAS.com - Plastic prices in Malaysia have also reportedly risen by up to 40 percent from normal levels due to the war in West Asia (Middle East). Mike Tan, Chairman of the Malaysian Plastic Manufacturers Association’s Johor branch, stated that Malaysia is currently facing a shortage of plastic raw materials. Shipping restrictions in the Strait of Hormuz are disrupting the supply chain of polyethylene terephthalate, which is the raw material for producing plastic and food packaging. “In the next two weeks, we can only wait and see; if Iran truly allows all ships to pass through the Strait of Hormuz, the situation may improve slightly. Prices might drop a bit,” said Mike, as quoted by Malaysian media New Straits Times (NST) on Saturday (11/4/2026). “But if US President Donald Trump chooses to prolong the war, the supply will be hit even harder,” he continued. This is because crude oil usually needs to be shipped for processing into polyethylene terephthalate (PET) first. “So when crude oil is unavailable, manufacturers cannot produce,” said Mike. According to the businessman, it is not easy to switch packaging from plastic to alternative packaging products like glass. This is because recycling is more difficult, it requires expensive costs, and the packaging mass is heavier. “It prolongs delivery times,” he said. This has made people complacent and unprepared for the impact of the escalation in West Asia. “However, the tensions in West Asia have shown how important plastic packaging is,” he stated. The impact of the shortage and high cost of plastic has been felt by the processed food and beverage industry.