Asia'；s Dual Approach: Bans and Recycling Incentives Resh

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The Asian regulatory environment for plastics is rapidly evolving, with countries adopting either stringent bans or innovative economic incentives to address plastic pollution. For businesses in the plastic manufacturing sector, understanding these divergent paths is crucial for navigating market access and identifying new opportunities.

Malaysia's Strict Phase-Out in Penang
Penang state has implemented a robust "no plastic bags" policy. Since September 1, 2025, fixed business premises like supermarkets, malls, convenience stores, and restaurants have been prohibited from providing plastic bags. This move is part of a broader national trend, with states like Sabah and Selangor enacting similar measures, pushing Malaysia toward a unified plastic management strategy.

India's Carrot-and-Stick Strategy
India is proposing a significant fiscal policy shift to boost its circular economy. A key proposal is to slash the Goods and Services Tax (GST) rate on plastic recycling from 18% to 5%. This reform, if passed, aims to make recycled plastics more competitive against virgin materials and could unleash an estimated INR 18 trillion in circular economy potential. This approach contrasts with outright bans, instead creating a powerful economic incentive for recycling and the use of recycled content.

China's Support for Alternatives
On the mainland, the policy focus includes supporting alternatives. The National Development and Reform Commission (NDRC) has explicitly included "support for the production and application of biodegradable plastics" in its special management measures for energy conservation and carbon reduction investments. This provides a clear policy signal and support for the development and adoption of sustainable plastic solutions.

Strategic Insight for Businesses:
The Asian market is fragmenting into two clear streams: one governed by strict (bans) and another driven by economic incentives. Manufacturers must align their product portfolios accordingly. In markets like Penang, providing compliant alternatives is essential. In jurisdictions like India, developing and supplying products that meet the demand for high-quality recyclates is the key to growth.

How Shandong FUKUN Navigates This Landscape:
At Shandong FUKUN New Materials Co., Ltd., we are proactively monitoring these regulatory trends. Our R&D efforts are focused on creating sustainable material solutions that cater to both types of markets—from biodegradable options for regions with strict bans to high-performance recycled content materials for economies promoting circularity.

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