Europe's plastic waste is making its way to ASEAN - especially Malaysia

ASEAN nations have emerged as a prominent international destination for plastic waste as European countries raise their environmental standards and China restricts this trade.

Our first chart examines the harmonized system (HS) code that covers plastic waste and scraps. Malaysia has emerged as the region's major importer in this category, measured in value terms; more than USD 200 million of plastic waste made its way to the country in the 12 months through August, a 7-year high.

Critics call such imports of non-biodegradable material "waste colonialism." Malaysia has imposed stricter controls on plastic-waste imports from July, but that has had no effect reducing the 12-month rolling sum so far.

Who are the exporters sending their waste to southeast Asia? Increasingly, Europeans. As our second chart shows, US and Japanese exports to the ASEAN-4 in this category have been waning, leaving the Netherlands, Germany and Belgium with outsized roles.

CEIC's granular database also allows us to analyze this category to the 6-digit HS code level, identifying categories of plastic waste -- and illuminating the potential role of recycling in this trade.

Polyethylene is the biggest sub-category of imported plastic waste, and it's recyclable. However, the scale of these imports likely exceeds Malaysia's recycling capacity.

CEIC's data also covers developed countries' total plastic waste exports to the rest of the world. The massive decline through the 2010s likely reflects successful government policies and recycling efforts, though there has been little change since 2020.

It's worth noting that official waste statistics underplay the extent of this global trade. Illicit waste exports are often never tracked, let alone reported; many countries that might be accepting foreign waste plastic do not track this category to the detailed HS code level.

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