Efforts to build circular packaging systems in Southeast Asia are accelerating as governments and global companies confront the region’s escalating waste challenge.
With ASEAN generating an estimated 31 million tons of plastic waste annually and recycling rates that remain far below global averages, Extended Producer Responsibility (EPR) systems are increasingly viewed as a critical mechanism for improving material recovery and financing waste infrastructure. Yet the region’s fragmented regulatory landscape and reliance on informal collection networks continue to constrain progress.
Across recent US-ASEAN Business Council (USABC) discussions, industry leaders and policymakers emphasized that predictability and regulatory coherence are emerging as essential prerequisites for investment. Many ASEAN countries are drafting or revising EPR legislation simultaneously, but with varying approaches, administrative structures, and cost-recovery models. This lack of coordination creates uncertainty for multinational producers operating across regional supply chains.
USABC’s Chief Country Representative for Indonesia, Nugraheni Utami, underscored that “clear, predictable, government-mandated and industry-run EPR frameworks” are needed for companies to commit long-term capital to recycling infrastructure. The call for regional alignment reflects concerns that divergent national systems could raise compliance costs without significantly improving collection rates. Transparent reporting and standardized performance metrics, she argued, would help establish a level playing field and reduce risk for investors.
Malaysia’s forthcoming EPR regulation, one of the region’s most closely watched developments, is seen as a test case of how multi-material systems can be structured to drive both environmental and economic outcomes. Tina Jamaluddin, USABC’s Chief Country Representative for Malaysia, noted that harmonized principles—paired with national flexibility—could reduce fragmentation and support more efficient implementation across ASEAN. Market actors also stress that consistency across borders facilitates cross-market movement of recycled materials, an important factor in scaling secondary feedstock supply.
Despite the momentum behind policymaking, operational challenges persist. Southeast Asia’s waste streams are highly dependent on informal collectors, who in some countries handle more than half of recyclables. Integrating these workers into formal EPR systems—while addressing labor standards, traceability, and occupational safety—remains a sensitive and complex undertaking. Limited institutional capacity and insufficient baseline data further complicate target setting and monitoring.
Private-sector participation is central to bridging these gaps. Coca-Cola, one of the region’s largest producers of packaged beverages, cited the need for collective action to address structural shortfalls in local waste systems. Umesh Madhavan, Director of Packaging Sustainability, noted that the company works with governments and recyclers across Southeast Asia, advocating for well-designed EPR frameworks in Malaysia and Indonesia and supporting Singapore’s development of a Deposit Return System (DRS). Investments in local partnerships—such as those with Mahija Foundation in Indonesia and recycling facilities like Hiroyuki Industries in Malaysia and Amandina Bumi Nusantara—are helping to demonstrate models for scalable material recovery.
These partnerships also highlight the growing emphasis on ethical and inclusive supply chains. Ardhina Zaiza, Chairwoman of Mahija Foundation, stressed that informal waste pickers remain the backbone of collection systems and require protections as the region transitions to more formalized EPR structures. The organization’s Responsible Sourcing Initiative aims to embed human rights and labor standards into material traceability, providing end-users with visibility into the social conditions linked to recycled content. Such initiatives are increasingly important as companies seek high-quality, ethically sourced materials to meet emerging corporate and regulatory requirements.
