Trade pact with US set to boost Malaysia’s polymers feedstock edge
Under the deal, Malaysia will grant expanded access to US exports in key industrial and agricultural sectors—including chemicals, metals, machinery, vehicles, and processed foods
The Malaysia–US Reciprocal Trade Agreement, signed in Kuala Lumpur on 26 October 2025, marks a new phase in the US-Malaysia bilateral ties. Set to take effect sixty days after ratification, the accord broadens market access, aligns regulatory frameworks, and deepens cooperation in supply chain security between the two countries.
Under the deal, Malaysia will grant expanded access to US exports in key industrial and agricultural sectors—including chemicals, metals, machinery, vehicles, and processed foods—while the US will maintain an average reciprocal tariff of 19% and extend zero-duty treatment to selected Malaysian goods.
Malaysia will also streamline non-tariff barriers such as import licensing for steel, overlapping halal certifications, and redundant conformity assessments.
The implications for Malaysia’s petrochemical and plastics industries are particularly significant. Products under HS Chapter 39—encompassing PE, PP, and other resin derivatives originating from the US—will face staged tariff liberalisation as outlined in Malaysia’s Schedule TL (MCDO 2022).
Liberalisation timelines vary by polymer type: PE and packaging materials will be fully duty-free within five years, while PP, PET, and speciality polymers will see gradual reductions over nine years.
Immediate duty elimination applies to polystyrene, technical resins, and recycled plastics, supporting downstream competitiveness and circular economy goals.
|
HS Code |
Description |
Unit |
MFN Import Duty Rate |
Staging Category |
|
3901101200 |
Polyethylene containing 5% or less alpha-olefin monomers |
kg |
0.1 |
EIF |
|
3901101900 |
Other |
kg |
0.1 |
EIF |
|
3901109200 |
Polyethylene containing 5% or less alpha-olefin monomers |
kg |
0.1 |
EIF |
|
3901109900 |
Other |
kg |
0.1 |
EIF |
|
3901200000 |
Polyethylene having a specific gravity of 0.94 or more |
kg |
0.1 |
EIF |
|
3901300000 |
Ethylene-vinyl acetate copolymers |
kg |
0 |
A |
|
3901400000 |
Ethylene-alpha-olefin copolymers, having a specific gravity of less than 0.94 |
kg |
0 |
A |
|
3901904000 |
In dispersion |
kg |
0 |
A |
|
3901909000 |
Other |
kg |
0 |
A |
|
3902103000 |
In dispersion |
kg |
0 |
A |
|
3902109000 |
Other |
kg |
0 |
A |
|
3902309000 |
Other |
kg |
0.1 |
EIF |
|
3902901000 |
Chlorinated polypropylene of a kind suitable for use in printing ink formulation |
kg |
0 |
A |
|
3902909000 |
Other |
kg |
0 |
A |
|
3903111000 |
In the form of granules |
kg |
0 |
A |
|
3903119000 |
Other |
kg |
0 |
A |
|
3903191000 |
In dispersion |
kg |
0 |
A |
|
3903192000 |
Granules, pellets, beads, flakes, chips and similar forms |
kg |
0 |
A |
|
3903199000 |
Other |
kg |
0 |
A |
|
3903204000 |
In aqueous dispersion |
kg |
0.1 |
R5 |
|
3903205000 |
In non-aqueous dispersion |
kg |
0.1 |
R5 |
|
3903209000 |
Other |
kg |
0 |
A |
|
3903304000 |
In aqueous dispersion |
kg |
0.1 |
R5 |
|
3903305000 |
In non-aqueous dispersion |
kg |
0.1 |
R5 |
|
3903306000 |
In the form of granules |
kg |
0.1 |
R5 |
|
3903309000 |
Other |
kg |
0 |
A |
|
3903903000 |
In dispersion |
kg |
0.1 |
A |
|
3903909100 |
Impact resistant polymers of styrene, having notched izod impact at 23°C less than 80 J/m |
kg |
0 |
A |
|
3903909900 |
Other |
kg |
0 |
A |
|
3904101000 |
Homopolymers, suspension type |
kg |
0.1 |
R5 |
|
3904109100 |
In the form of granules |
kg |
0.1 |
R5 |
|
3904109200 |
In the form of powder |
kg |
0.1 |
R5 |
|
3904109900 |
Other |
kg |
0.1 |
R5 |
|
3904211000 |
In the form of granules |
kg |
0.1 |
R5 |
|
3904212000 |
In the form of powder |
kg |
0.1 |
R5 |
|
3904219000 |
Other |
kg |
0.1 |
R5 |
|
3904221000 |
In dispersion |
kg |
0 |
A |
|
3904222000 |
In the form of granules |
kg |
0.1 |
R5 |
|
3904223000 |
In the form of powder |
kg |
0.1 |
R5 |
|
3904229000 |
Other |
kg |
0.1 |
R5 |
|
3904301000 |
In the form of granules |
kg |
0 |
A |
|
3904302000 |
In the form of powder |
kg |
0 |
A |
|
3904309000 |
Other |
kg |
0 |
A |
|
3904401000 |
In the form of granules |
kg |
0 |
A |
|
3904402000 |
In the form of powder |
kg |
0 |
A |
|
3904409000 |
Other |
kg |
0 |
A |
|
3904504000 |
In dispersion |
kg |
0.1 |
R5 |
|
3904505000 |
In the form of granules |
kg |
0 |
A |
|
3904506000 |
In the form of powder |
kg |
0 |
A |
|
3904509000 |
Other |
kg |
0 |
A |
|
3904611000 |
In the form of granules |
kg |
0 |
A |
|
3904612000 |
In the form of powder |
kg |
0 |
A |
|
3904619000 |
Other |
kg |
0 |
A |
|
3904693000 |
In dispersion |
kg |
0 |
A |
|
3904694000 |
In the form of granules |
kg |
0 |
A |
|
3904695000 |
In the form of powder |
kg |
0 |
A |
|
3904699000 |
Other |
kg |
0 |
A |
|
3904903000 |
In dispersion |
kg |
0 |
A |
|
3904904000 |
In the form of granules |
kg |
0 |
A |
|
3904905000 |
In the form of powder |
kg |
0 |
A |
|
3904909000 |
Other |
kg |
0 |
A |
|
3905120000 |
In aqueous dispersion |
kg |
0.1 |
R5 |
|
3905191000 |
In the form of liquids or pastes |
kg |
0 |
A |
|
3905199000 |
Other |
kg |
0 |
A |
|
3905210000 |
In aqueous dispersion |
kg |
0.1 |
R5 |
|
3905290000 |
Other |
kg |
0 |
A |
|
3905301000 |
In dispersion |
kg |
0.1 |
R5 |
|
3905309000 |
Other |
kg |
0 |
A |
|
3905911000 |
In dispersion |
kg |
0.1 |
R5 |
|
3905919000 |
Other |
kg |
0 |
A |
|
3905991000 |
In aqueous dispersion |
kg |
0.1 |
R5 |
|
3905992000 |
In non-aqueous dispersion |
kg |
0 |
A |
|
3905999000 |
Other |
kg |
0 |
A |
|
3906101000 |
In dispersion |
kg |
0 |
A |
|
3906109000 |
Other |
kg |
0 |
A |
|
3906902000 |
In dispersion |
kg |
0 |
A |
|
3906909200 |
Sodium polyacrylate |
kg |
0 |
A |
|
3906909900 |
Other |
kg |
0 |
A |
|
3907100000 |
Polyacetals |
kg |
0 |
A |
|
3907210000 |
Bis(polyoxyethylene) methylphosphonate |
kg |
0 |
A |
|
3907291000 |
Polytetramethylene ether glycol |
kg |
0 |
A |
|
3907299000 |
Other |
kg |
0 |
A |
|
3907302000 |
Of a kind used for coating, in powder form |
kg |
0 |
A |
|
3907303000 |
In the form of liquids or pastes |
kg |
0 |
A |
|
3907309000 |
Other |
kg |
0 |
A |
|
3907400000 |
Polycarbonates |
kg |
0 |
A |
|
3907501000 |
In the form of liquids or pastes |
kg |
0.1 |
R5 |
|
3907509000 |
Other |
kg |
0.1 |
R5 |
|
3907610000 |
Having a viscosity number of 78 ml/g or higher |
kg |
0.15 |
R10 |
|
3907691000 |
Granules and similar forms |
kg |
0.15 |
R5 |
|
3907699000 |
Other |
kg |
0.15 |
EIF |
|
3907700000 |
Poly(lactic acid) |
kg |
0.05 |
EIF |
|
3907912000 |
Granules and similar forms |
kg |
0 |
A |
|
3907913000 |
In the form of liquids or pastes |
kg |
0.1 |
R5 |
|
3907919000 |
Other |
kg |
0.1 |
R5 |
|
3907994000 |
Of a kind used for coating, in powder form |
kg |
0.1 |
R5 |
|
3907995000 |
Thermoplastic liquid crystal aromatic polyester copolymers |
kg |
0 |
A |
|
3907996000 |
Polybutylene succinate (PBS) |
kg |
0.1 |
R5 |
|
3907999000 |
Other |
kg |
0.1 |
EIF |
Category Key:
EIF (Entry Into Force) – Customs duties eliminated entirely (duty-free) immediately upon entry into force of the Agreement.
R5 – Duties reduced immediately to 5% ad valorem upon entry into force.
R10 – Duties reduced immediately to 10% or 15% ad valorem, respectively, upon entry into force.
A – Duties remain bound at current MFN rates (0%, 2%, 3%, or 5% ad valorem) upon entry into force.
Analysts say the phased tariff cuts for US exports into Malaysia could reshape regional trade flows by narrowing the landed-cost gap between US Gulf Coast and Asian-origin cargoes. This may enhance Malaysia’s attractiveness as a redistribution and conversion hub for polymer-based products particularly from the US. However, the near-term impact remains uncertain amid regional oversupply and subdued demand in China and Southeast Asia.
However, critics caution that granting broad US access could dilute Malaysia’s policy autonomy in sensitive industrial sectors, arguing that deeper economic alignment must not come at the expense of sovereignty. The agreement’s success, they note, will depend on Malaysia’s ability to balance market openness with strategic self-determination as global trade blocs continue to realign.
Written: Aiman Haikal