Penang amasses RM19mil from plastic bag fee


Amount collected over 16 years to fund future environmental efforts

SIXTEEN years after launching the country’s first “no plastic bag” campaign, Penang’s environmental initiative has generated upwards of RM19m in fees.

The funds accumulated from the 20sen and RM1 charges for plastic bags have been returned to the state coffers for future environmental initiatives, said state environment committee chairman Datuk Seri S. Sundarajoo.

“Of this, about RM800,000 was spent on various green campaigns, including producing and distributing recycled bags.

“The balance has been channelled back to the state’s coffers. We will use the funds again when and where the need arises,” he said when contacted.

The annual breakdown showed steady contributions over the years, with collections coming through the Penang Island City Council and Seberang Perai City Council.

The amount collected was then channelled to the Penang Economic Planning Unit to support environmental initiatives and awareness programmes.

Collections peaked after 2018, with both city councils contributing over RM2mil annually.

As of Sept 1, 2025, a total ban on plastic bags has come into force across Penang, with retailers – including supermarkets and convenience stores – no longer permitted to provide them even for a fee.

This followed the launch of “Penang No Plastic Bags Every Day Campaign 2025”, marking a bold step towards eliminating single-use plastics in the state.

However, Sundarajoo said an education phase would take place until Aug 31 before enforcement was carried out.

The state’s latest push is the culmination of a journey that began in July 2009 when it became the first state in Malaysia to launch the “No Free Plastic Bag Day” campaign.

In November the same year, the policy was extended to cover three days a week.

Penang took a bolder step in 2011 by introducing a “No Free Plastic Bag Every Day” rule for major retailers.

Customers had to pay 20sen if they wanted a bag, a move that quickly set the state apart as a pioneer in green policy.

By 2021, Penang recalibrated its approach and plastic bags were banned every Monday to Wednesday, while from Thursday to Sunday, shoppers were charged RM1 per bag.

The message is clear – using plastic has to come at a cost.

However, Sundarajoo said hawkers and wet market traders remained a critical obstacle in the transition, as discussions on viable alternatives to single-use plastics are ongoing.

For these traders, plastic bags are lightweight, cost-effective and a practical choice for packing items such as soup-based dishes and fresh produce.

Despite this, many have expressed openness to adopting alternative solutions proposed by the state government, provided they were both affordable and practical for daily use.

Penang Green Council general manager Josephine Tan acknowledged the challenge of introducing alternatives to single-use plastics, but said market-ready substitutes existed.

“There are plenty of alternatives in the market. It’s just about the costing. We need some time to negotiate on that,” she said.

She added that the shift to sustainable packaging must be affordable for hawkers, many of whom rely on high-volume, low-margin business.

Meanwhile, some Form Four students from SMK Convent Butterworth, one of several schools which participated in green projects run by the state environment committee, offered ideas on how the collection from plastic bags could be reinvested for the environment.

The students – Ng Jing Han, Nacchammai Seetha and Ning Tze Yen – said the campaign should evolve to benefit the environment and community through targeted programmes.

They said part of the funds could be channelled to local authorities and the Environment Department to repair ageing infrastructure, improve public cleanliness and support new environmental systems.

“With each plastic bag purchase, revenue is generated, and this money should be managed effectively through strategic funding,” they said when contacted.

They cited the Seabin Project, started in Australia in 2015, as an example of how funded initiatives could remove floating rubbish from waterways.

The trio also proposed that non-governmental organisations be given funding to run talks, workshops and awareness campaigns to nurture a culture of environmental responsibility.

They also suggested using part of the collection to buy seedlings for reforestation programmes.

Wildlife shelters and conservation centres could benefit from improved facilities, proper veterinary care and upgraded living spaces for rescued animals, they added.

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