MPMA had a constructive discussion with the Ministry of Finance today, chaired by Mr Fadzlee Malik, Head of SST Department. MPMA highlighted three key issues impacting the plastics industry, and MOF provided the following responses:

1. Resin Supply Chain – Current exemptions are too narrow, leaving SMEs exposed to higher costs as Tier 2 distributors are excluded. MOF shared a solution for SMEs to purchase resins under the existing framework.

2. Machinery & Equipment – The 5% SST on plastics machinery, moulds, and robots raises capital costs, discouraging automation and productivity upgrades. MOF acknowledged that some HS Codes were overlooked and requested MPMA to submit a full list for review.

3. Recycling Industry – Gaps in SST exemptions for plastic scrap collectors and yard operators risk undermining recycling and circular economy goals. MOF said they will study the proposal and may expand Schedule C to exempt the recycling supply chain from tax.

The Government has taken note of our concerns and signaled openness to addressing them. MPMA will continue to engage closely with MOF to ensure practical and fair solutions for the industry.

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