As of July 1, Malaysia will no longer accept plastic and hazardous waste from countries that haven’t ratified the Basel Convention – this includes the U.S. and only a handful of other small countries.

This change isn’t widely known outside the industry, but MRFs (Materials Recovery Facilities) are feeling the impact. Malaysia had become a key destination for U.S. plastic waste after China’s 2018 import ban. Now, with this market suddenly closed, recyclers are facing a surplus of scrap plastic they can’t move—leading to oversupply and downward pressure on prices.