Taiwan is stepping up efforts to stabilise plastic bag supply and promote reuse schemes after disruptions to petrochemical feedstocks linked to a war in the Middle East triggered panic buying across the island.
Recent conflict in the Middle East has disrupted upstream supplies of petrochemical raw materials, tightening availability of downstream products such as plastic packaging. The situation has fuelled what local media dubbed a “plastic bag panic”, with reports of hoarding and shortages in several regions.
Taiwan’s economy ministry said it is closely monitoring supply conditions in the petrochemical sector and has coordinated with major producers to ensure stable output in April. Formosa Petrochemical will maintain production of ethylene and propylene for downstream manufacturers, while state-run CPC Corp has brought forward the restart of a naphtha cracker to boost ethylene output.
CPC said the facility’s production capacity has been raised to about 79,000 tonnes from just over 60,000 tonnes, which could help ease a shortfall in raw materials for downstream plastic products.
The company also convened a meeting with major polyethylene (PE) producers, including Formosa Plastics and Asia Polymer, pledging to supply sufficient ethylene feedstock. Manufacturers said they are willing to ramp up production, but noted that higher global naphtha prices could push up costs, which may be passed on to downstream buyers.
Separately, the island’s environment ministry is expanding a nationwide reuse initiative to curb demand for new plastic bags and reduce pressure on supply chains.
The programme, which encourages households to donate unused paper and reusable bags, connects supply with retailers and traditional markets through a matching platform. Businesses can set up low-cost collection points using standardised designs provided by the government.
Taiwan’s environment ministry is expanding a nationwide reuse initiative to curb demand for new plastic bags and reduce pressure on supply chains. Image: Resource Circulation Administration (RCA)
Environment minister Peng Chi-ming said the policy marks a shift from restrictive plastic reduction measures towards building convenient alternatives that encourage behavioural change.
A pilot at Taipei’s Jianguo Flower Market showed the share of plastic-free purchases rose to 10 per cent from 1.5 per cent after introducing second-hand bag circulation, according to the ministry.
Officials said the initiative also aims to strengthen resource circulation and reduce costs for businesses amid volatile external conditions, while encouraging corporate participation as part of environmental, social and governance (ESG) efforts.
The ministry added it will recognise companies that contribute to the scheme, as Taiwan seeks to build a more resilient circular economy while navigating fluctuations in global petrochemical markets.
Across Asia, governments have adopted similar playbooks to cushion the impact of volatile oil markets. Indonesia and Thailand have expanded fuel subsidies or capped pump prices, while India has previously cut fuel taxes and leaned on state refiners to absorb costs during price spikes.
