This report discusses the issue of plastic pollution in Malaysia and proposes an extended producer responsibility (EPR) scheme to transition towards a circular economy. The proposed EPR scheme includes a mandatory system for all consumer packaging materials and non-packaging plastic products, the establishment of a non-profit Producer Responsibility Organisation (PRO), and a modulated fee system to incentivize recycling. The report also provides a cost-benefit analysis and an implementation plan for the proposed EPR scheme. The current waste management system and recycling market for plastic packaging waste in Malaysia are also discussed, including the challenges and opportunities for improvement.