The Malaysian government has introduced provisional anti-dumping tariffs on polyethylene terephthalate (PET) imports from China and Indonesia, with rates ranging from 6.33% to 37.44%. This move follows a petition from Recron (M) Sdn Bhd, a local manufacturer of PET, which argued that imports of the material from these countries were being sold at artificially low prices in Malaysia, undermining the local industry and causing substantial harm. PET, a strong and rigid synthetic fibre and resin, is commonly used in a wide variety of applications, including textile fabrics, containers for liquids and food, thermoforming in manufacturing processes, and as an engineering resin when combined with glass fibre.

The Ministry of Investment, Trade, and Industry (Miti) launched an investigation into the matter in August 2024. After reviewing the evidence, Miti concluded that the claims of dumping were substantiated, leading to the imposition of the provisional duties. These tariffs, which began on January 7, 2025, will remain in place for a period of up to 120 days. During this time, the government will continue its investigation and a final determination is expected to be made by May 6, 2025.

The anti-dumping duties are a preliminary response to the petition filed by Recron (M) Sdn Bhd, which maintains that the unfair pricing of PET by foreign manufacturers from China and Indonesia has resulted in a significant loss of market share and financial damage to the domestic PET sector in Malaysia. The tariffs aim to protect local producers from the detrimental effects of such unfair trade practices, thereby safeguarding the interests of the local industry.

In a statement issued on Tuesday, January 7, 2025, Miti invited comments and feedback from interested parties. These include importers, foreign producers, exporters, and industry associations who may be impacted by the investigation and the proposed tariffs. The deadline for submitting comments is set for January 17, 2025, at 5:30 pm. Miti emphasized that these comments would be taken into consideration before the final determination is made in May 2025.

PET is part of the polyester family of polymers and is widely recognized for its strength and rigidity. Due to its versatility, it is used in a range of industries, from textiles to packaging. The material’s application in the food and beverage industry, as well as in manufacturing processes such as thermoforming, makes it a key product in various supply chains. When combined with glass fibre, PET also finds use as an engineering resin in numerous industrial applications. The material's ability to be processed into various forms has contributed to its widespread use across multiple sectors, further underscoring the importance of ensuring that local producers are not disadvantaged by unfair trade practices.

This action by the Malaysian government is in line with its commitment to ensuring fair trade practices and protecting the domestic industry from harmful dumping activities. With the provisional duties in place, the authorities will continue to monitor the situation and take necessary actions to support the competitiveness of local industries in the face of unfair pricing from foreign producers. The investigation and the eventual resolution of the case will set a precedent for future anti-dumping measures in Malaysia’s trade policy.