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EKONOMI KITARAN DALAM PENGURUSAN BUANGAN TERJADUAL STRATEGI NASIONAL KE ARAH INDUSTRI MAMPAN.pdf

EKONOMI KITARAN DALAM PENGURUSAN BUANGAN TERJADUAL STRATEGI NASIONAL KE ARAH INDUSTRI MAMPAN

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PEMBENTANGAN 3 EKONOMI KITARAN DALAM PENGURUSAN BUANGAN TERJADUAL: STRATEGI NASIONAL KE ARAH INDUSTRI MAMPAN WAN MUJAHID BIN WAN HAMIDON AURECON LESTARI SDN BHD
OVERVIEW OF THE PRESENTATION The presentation will offer insights on circular economy implementation in scheduled waste management. The Need for Circular Economy 02 Circular Economy: An Overview Circular Economy in Scheduled Waste Management 03 01 Challenges and Way Forward 04
1 THE NEED FOR CIRCULAR ECONOMY
MALAYSIA’S ECONOMIC TRANSFORMATION Agriculture & Commodities New Economic Policy (NEP) 1971 Manufacturing Rubber Tin Electric & Electronics Automobiles The 1970s marked a pivotal era in Malaysia’s economic transformation. Recognising the limitations of an agriculture-based economy, the government, under the New Economic Policy (NEP) launched in 1971, began to shift the economic focus towards industrialization.
GROSS DOMESTIC PRODUCT VS SCHEDULED WASTE GENERATION 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GDP (RM Million) Scheduled Waste Generation ('000 MT) Scheduled Waste Generation GDP (RM Mil) The rapid industrialisation that propelled Malaysia’s economic growth has introduced an increasingly urgent consequence: the escalating generation of scheduled waste. As manufacturing and processing activities intensified, the volume of hazardous by-products followed the same upward trajectory, revealing a direct link between economic progress and environmental pressure. This trend is clearly illustrated when we observe an upward trend in both Gross Domestic Product (GDP) and scheduled waste generation over recent years.
SW 205 Waste gypsum 11.5% Chemical Industry 9.8% Metal Fabrications 10.5% MAJOR SCHEDULED WASTE GENERATORS AND TYPES Contributed up to 78% of scheduled waste generation among industrial sectors over the nine-year period (2015- 2023). Power Plant Electric & Electronic Water Treatment Plant SW Prescribed Premises Contributed up to 74% of the overall SW generated over the nine-year period (2015- 2023). SW 104 Dust, slag, dross or ash containing heavy metal SW 204 Sludges containing one or several heavy metal SW 305 Spent lubricating oil 33.6% 9.2% 7.8% 8.4% 43.6% 15.1% 3.8%
SCHEDULED WASTE GENERATION OUTLOOK 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 Scheduled Waste Generation (MT) 11.3 mil MT 14.5 mil MT 7.5 mil MT 0.5 mil MT
Gold Mine (100MT) Laptop Production (30MT) End-of-Life (30MT) 1 Use (30MT) Take Make Use Dispose Gold Mine (70MT) Laptop Production (30MT) End-of-Life (30MT) 2 Use (30MT) (40MT) (60MT) LINEAR ECONOMY
COSTS OF LINEAR ECONOMY Depleting Natural Resources Degrading Environment Burdening the Landfills Losing Resources Finite resources like fossil fuels, minerals, and fresh water are consumed faster than they can regenerate. Resource extraction (mining, logging) harms ecosystems and biodiversity. High carbon emissions from production and waste contribute to global warming. Landfills are rapidly filling up with hazardous waste and more land is needed for waste disposal, reducing space for agriculture or urban development. Products are designed for disposal rather than reuse or recycling, leading to a loss of valuable materials. Valuable inputs (precious metals) are wasted instead of being reinvested into the production cycle Linear thinking, in essence, ignores the full lifecycle of materials. It focuses on output and growth, without accounting for where those materials come from or where they end up.
Gold Mine (100MT) Laptop Production (30MT) End-of-Life (30MT) 1 Use (30MT) Take Make Use Dispose Recycle Gold Mine (70MT) Laptop Production (30MT) End-of-Life (30MT) Use (30MT) 2 (20MT) (10MT) (60MT) (20MT) Recycle (20MT) Next Cycle
Saving Energy and Reducing Emissions Manufacturing new products from scratch often requires more energy and releases more greenhouse gases than reusing or recycling. For example, it takes far less energy to recycle aluminum than to extract it from raw bauxite. By focusing on reuse and recycling, a circular economy reduces greenhouse gas emissions, which helps combat climate change. Reducing Waste and Pollution Every year, hundred thousand of tons of scheduled waste are sent to landfills. Scheduled waste may be hazardous poses particular challenges for the environment. Through circular economy principles, waste can be minimized, reused, or repurposed rather than disposed of, helping protect natural resources and reducing pollution in land, water, and air. Conserving Resources Natural resources like water, minerals, and fossil fuels are finite, meaning they will eventually run out if we continue to use them irresponsibly. The circular economy helps conserve these resources by keeping materials circulating and extending their useful life. For instance, when electronics are recycled, valuable metals and components are recovered and can be reused in new products instead of mining fresh resources. Creating Economic Opportunities The shift to a circular economy creates new business opportunities in Malaysia and around the world. Repair services, remanufacturing businesses, and recycling facilities are just a few examples. As companies find innovative ways to extend the life of products and materials, they can lower costs, add value, and create jobs in emerging “green” industries. BENEFITS OF CIRCULAR ECONOMY
2 CIRCULAR ECONOMY: AN OVERVIEW
Principles: 1) Eliminate waste and pollution 2) Circulate products and materials 3) Regenerate nature
CIRCULAR ECONOMY PRINCIPLES Circular Economy Economic system that uses a systemic approach to maintain a circular flow of resources, by recovering, retaining or adding to their value, while contributing to sustainable development Principles Environmental system Social system Economic system 1. System thinking – Taking a life cycle perspective and apply long- term approach when considering their impacts on environmental, social and economic system. 2. Value creation – Recover, retain or add value by providing effective solutions that contribute to socio-economic and environmental value and efficient use of resources. 3. Value sharing – collaboration along the value chain or value network in an inclusive and equitable way, for benefit of society 4. Resource stewardship – Manage resources in a sustainable way 5. Resource traceability – Collect and maintain data to enable tracking of resources 6. Ecosystem resilience – develop and implement practices and strategies that protect and contribute to resilience and regeneration of ecosystems
Support Circular Economy Transition Actions Contributing to a Circular Economy Creation of Added Value Value Retention Value Recovery Planning and design that enables optimization of product, resource circulation and prevention of waste generation Retaining the value, for both resource and product by extending the purpose of usage for as long and many as possible Actions that will ultimately lead to the conservation and continuous renewal of natural resources Recover the value of waste either by product, component or material with the goal to reintroduce them into new products or processes Regeneration of Ecosystems Creating a system that supports and enables circular economy within and between industries and organizations Residuals Input
Value Retention Retaining the value, for both resource and product by extending the purpose of usage for as long and many as possible • Reduce, Reuse, Repurpose • Maintenance and repair • Performance based approaches ACTIONS CONTRIBUTING TO CIRCULAR ECONOMY • Sharing to intensify use • Refurbishing • Remanufacturing Creation of Added Value Planning and design that enables optimization of product and resource circulation and prevention of waste generation • Design for circularity • Circular sourcing • Circular procurement • Process optimization • Industrial, regional or urban symbiosis
ACTIONS CONTRIBUTING TO CIRCULAR ECONOMY Regeneration of Ecosystems Actions that will ultimately lead to the conservation and continuous renewal of natural resources. Support Circular Economy Transition Creating a system that supports and enables circular economy within and between industries and organizations • Education and research • Innovation • Collaboration and Networks • Behaviour changes Value Recovery Recover the value of waste either by product, component or material with the goal to reintroduce them into new products or processes • Cascade resources • Recycling • Waste management • Material recovery • Energy recovery • Policy and legal system • Financial services • Digitalization
3 CIRCULAR ECONOMY IN SCHEDULED WASTE IN MALAYSIA
TWELFTH MALAYSIA PLAN 2021-2025 One of the success indicators: “Increased recycling of scheduled waste by 35%” 1. Strategy A2 - Creating an Enabling Ecosystem for the Circular Economy • Covers for the design, production, logistics, consumption and waste management of products and services. • Develop enabling framework mapping the entire value chain and stakeholders involved. • Introduce a blueprint for the circular economy related to solid waste, plastics, scheduled waste and agricommodities. • Develop relevant policies, legislation and economic instruments to facilitate the circular economy transition. 2. Strategy A3 - Implementing Environmentally Sound Management of Chemical and Hazardous Substances • Establishment of a dedicated task force to coordinate and oversee the overall management of chemical and hazardous substance from production to disposal stage. • Introduce a mechanism to monitor movement of chemical and hazardous substances and their wastes. • Construction of integrated scheduled waste treatment and disposal facilities to enable recovery, treatment, recycling and sound management of waste, therefore minimizing illegal dumping. Theme 3: Advancing Sustainability Game Changer VIII - Embracing the Circular Economy
National Circular Economy Council of Malaysia • Chaired by the Prime Minister & led by the Ministry of Housing and Local Government (KPKT). • Technical working group undertake circular economy agenda for specific resources, and comprise of several representative ministries, such as Ministry of Natural Resource and Environmental Sustainability (NRES), Ministry of Works (KKR), Ministry of International Trade and Industry (MITI) and Ministry of Agriculture and Food Industries (MAFI). • The lead agency for the implementation of circular economy agenda for scheduled waste is DOE. NATIONAL CIRCULAR ECONOMY COUNCIL IN MALAYSIA Supreme Committee Chairman: Prime Minister Executive Committee Chairman: Minister of KPKT Technical Working Group Committee (TWG) Chairman: Secretary General of KPKT TWG 1 Plastics TWG 2 Water TWG 3 C&D TWG 4 Organic & Agricultural TWG 5 Scheduled Waste TWG 6 Steel, Paper, Glass, Fabric & Rubber NRES NRES KKR MAFI DOE MITI SECRETARIAT: KPKT
OTHER RELATED PLANS AND POLICIES New Industrial Master Plan 2030 (NIMP) Circular Economy Policy Framework for the Manufacturing Sector Green Technology Master Plan Malaysia 2017-2030 Circular Economy Blueprint for Solid Waste 2025-2035 Lead Ministry Ministry of International Trade and Industry (MITI) Ministry of International Trade and Industry (MITI) Ministry of Natural Resource and Environmental Science (NRES) Ministry of Housing and Local Government (KPKT) CE Considerations Under “Mission 3: Push Net Zero” where planning in works to develop a CE framework for the industry as a catalyst for new green growth areas Framework that emphasizes on the role of manufacturers in the CE value chain Under the goal to achieve sustainable utilization of natural resources, waste management was identified as one of the target key sectors. Has the goal to transform solid waste management from linear economy to circular economy which aims to close the loop of material cycle. Key Information Outline Malaysia’s direction in industrial development. Understanding the responsibilities of key enablers (manufacturers & industries) along value chain for implementation of CE. Highlights on the plan in the assessing the feasibility and market creation for green technology within the waste management sector. Guides Malaysia towards a circular economy while supporting economic prosperity and strengthens ecological resilience, reflecting the nation’s commitment to a cleaner and more sustainable future.
CIRCULAR ECONOMY FRAMEWORK FOR SCHEDULED WASTE Design-Driven Circular Economy Framework for Scheduled Waste Management 1. System thinking 2. Value creation 3. Value sharing Waste Hierarchy Cradle-to-Cradle Creating products and systems that are restorative and regenerative, with the aim of cycling indefinitely without creating waste or pollution. Ranks waste management options based on their resource efficiency in terms of: • Reduction/prevention of waste generation, • Reduction of overall impact from waste generation • Subsequent management of waste. Environmentally Sound Management (ESM) Cradle-to-Grave Safe management system which controls subject waste throughout its lifecycle: generation, collection, storage, transportation, treatment, recovery to disposal. The potential to reutilize hazardous waste shall not take precedence over ensuring proper management. Taking all practicable steps to ensure that hazardous wastes or other wastes are managed in a manner which will protect human health and the environment against the adverse effects which may result from such wastes Principle of Circular Economy: Circular Economy: Concepts for Waste Management Circular Economy: Concepts for Hazardous Waste Management Principles of Circular Economy Circular Economy Concepts for Waste Management Circular Economy Concepts for Hazardous Waste Management 1. Resource stewardship 2. Resource traceability 3. Ecosystem resilience
AVAILABLE PLANS FOR SCHEDULED WASTES MANAGEMENT Strategic Plan for the Management of Scheduled Waste (PASCA), 2015 • Aims to provide governance guidance to the enforcement agency and all other SW management stakeholders • Promote waste management that improves environmental sustainability and economic competitiveness, based on the principle of “cradle-to-cradle” and through strengthening of the 4R principle. 1 2 DOE Strategic Plan 2021-2030 • Aims to improve DOE services align with the national development agenda through effective strategies • Initiative to 50% increase in recycling rate for scheduled waste by 2030, compared to 17% recycling rate in 2020
CURRENT LEGISLATION FOR SCHEDULED WASTE MANAGEMENT Legal Provisions Environmental Quality Act 1974 • Governed by Section 34B (Prohibition against placing, depositing, etc of scheduled wastes) • No person is allowed to engage in the following activities without prior written approval from the Director General of the Department of Environment (DOE) Subsidiary Legislation under EQA 1974 • Environmental Quality (Scheduled Wastes) Regulations 2005; • Environmental Quality (Prescribed Conveyance) (Scheduled Wastes) Order 2005; • Environmental Quality (Prescribed Premises) (Scheduled Wastes Treatment and Disposal Facilities ) Order 1989; and • Environmental Quality (Prescribed Premises) (Scheduled Wastes Treatment and Disposal Facilities ) Regulations 1989. Department of Environment (DOE) Hazardous Substance Division is responsible for overseeing and enforcing the EQA (Scheduled Wastes) Regulations 2005
CURRENT SCHEDULED WASTE MANAGEMENT IN MALAYSIA
TERMS AND DEFINITIONS Sources: 1 ISO 59004:2024 2 EU WFD (2018) 3 Basel Convention Glossary of Terms (2017) 4 MCMC Technical Code (2019) 5 Basel’s Technical Guidelines on the Environmentally Sound Co-Processing of Hazardous Waste in Cement Kilns (2011) 6 Environmental Quality (PP) (Scheduled Wastes Treatment and Disposal Facilities) Order 1989 Reduce 1 Measures to be taken before a substance, material or product has become waste, that reduce the amount of waste through increasing the efficiency in product manufacturer or by consuming fewer virgin materials (input). Reuse 1&2 Using again of discarded product or substance for the same or alternative purposes for which it was conceived that promotes resource efficiency without the necessity of pre-processing. This includes bringing waste back into use. Example 1: Using coal with lower ash content in coal fired power plant can reduce the generation of SW 104 – Bottom Ash. Example 2: Plant is designed for complete combustion which reduces generation of SW 104 – Ash. Example: Reuse is typically through special management such as: 1. Use as soil conditioner. 2. Use as neutralization agent. 3. Use for backfilling. 4. Reuse of contaminated container.
Sources: 1 ISO 59004:2024 2 EU WFD (2018) 3 Basel Convention Glossary of Terms (2017) 4 MCMC Technical Code (2019) 5 Basel’s Technical Guidelines on the Environmentally Sound Co-Processing of Hazardous Waste in Cement Kilns (2011) 6 Environmental Quality (PP) (Scheduled Wastes Treatment and Disposal Facilities) Order 1989 Recovery 1,2&5 Recapturing and reutilizing recoverable resources specifically which will be use for reuse, remanufacturing, recycling or other methods that can add or retain value of a resource. This includes material recovery/reclamation, material reprocessing to be used as fuel and energy recovery; where energy recovery is only an end- of-life operation. Final Disposal 2&4 Operations that result in final disposition, placement or destruction of waste, which is not recovery even where the operation has a secondary consequence the reclamation of substances or energy. Treatment 2&4 Processing operations that change the biological or physico-chemical properties of waste, including interim operations which prepare waste prior to reuse, recovery or final disposal operations. Material Recovery: Recovery of Platinum Group Metals (PGMs) from waste catalysts. Energy Recovery: High-calorific-value scheduled waste such as oily sludge (SW306) is increasingly used as alternative fuel (AF) in co-processing . TERMS AND DEFINITIONS
TERMS AND DEFINITIONS Aspect Disposal Recovery Main purpose To get rid of waste permanently (final placement, destruction). To extract value: reuse, recycle, or recover energy/materials. Examples - Landfilling - Recycling of materials - Deep injection - Composting/anaerobic digestion - Surface impoundment - Solvent regeneration - Release to water bodies - Energy recovery via incineration - Incineration without energy recovery - Use as fuel in cement kilns - Permanent storage - Reuse/refurbishment of products Energy aspect If heat or energy is produced, it’s only incidental and not used productively. Energy recovery is intentional and efficient: e.g., electricity, steam, hot water, or district heating. Incineration Incineration without energy recovery → classified as disposal. Incineration with energy recovery (meeting efficiency standards) → classified as recovery. Outcome No further use; waste is destroyed or permanently stored. Waste substitutes for raw materials or fuels; outputs are fed back into the economy.
SW MANAGEMENT IN THE CONTEXT OF CIRCULAR ECONOMY
Physical Chemical Biological Thermal Relies on physical characteristics of the waste materials in order to separate the hazardous waste constituents Using chemical reagents to change the chemical structure of the constituents Microorganisms degrade or detoxify the hazardous waste components present Reduction of volume and toxicity of the wastes using high temperature Examples Absorption, Evaporation, Filtration, Gravity Separation, Magnetic Separation, Sedimentation, Microwave Radiation, Thickening, Ultrasonic Separation SW Code* All SW except for SW203, SW403, SW431 and SW501 Examples Chemical Dehalogenation, Fenton Process, Hydrolysis, Immobilization, Forced Leaching, Neutralization, Redox, Ozone-based Technology, Solvent Extraction SW Code* All SW Examples Aerobic Treatment Units, Biological Reactors, Anaerobic Digestion Systems, Bioleaching, Bio- Reclamation, Land Farming, Vermicomposting SW Code* SW101, SW102, SW103, SW104, SW105, SW106, SW107, SW108, SW110, SW202, SW204, SW205, SW309, SW318, SW319, sW320, SW326, SW401, SW405, SW412, SW416, SW420, SW425, SW426, SW427, SW429, SW430 Examples Autoclaving, Calcination, Gasification, Molten Salt Destruction, Pyrolysis, Incineration, Wet Air Oxidation SW Code* All SW except for SW431 TECHNOLOGIES CONTRIBUTING TO CIRCULAR ECONOMY
4 CHALLENGES AND WAY FORWARD
PROGRESS TOWARDS CIRCULAR ECONOMY • The proportion of scheduled waste subjected to recovery processes including off-site recovery facilities, special management (excluding scheduled wastes sent to sanitary landfills or disposed of by slow burning) and export to foreign facilities has remained relatively stable at around 1.42 million MT from 2015 to 2023. • Although 32% of the scheduled waste is already directed toward recovery in 2023, true progress in circularity will be achieved when on-site storage is reduced and these materials are reintroduced into the market for further reuse or recovery. • This current recovery or recycling rate must be increased by another 13% to achieve the target 50% recycling rate of scheduled waste in 2030. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 Scheduled Waste Generation (MT) Total Waste Generated Recovery 32% 23% 18% 25% 32% 49% 54% 60% 40% 2030 50%
Inconsistent domestic supply Marketability of the recovered materials/products Lack of platform to exchange knowledge, technology, etc. High investment cost Competition with illegal market Lack of incentives Lack of standard and guidelines Lack of awareness CHALLENGES
SUMMARY OF CHALLENGES Regulatory and Policy Challenges Malaysia’s scheduled waste regulations are in urgent need of revision to align with circular economy (CE) objectives. Overclassification of non-hazardous materials as scheduled waste restricts resource recovery and industrial reuse, while blanket bans on the importation of certain waste streams hinder industrial growth even when environmental compliance is assured. Existing policies also lack specific provisions for CE implementation, leading to inconsistent interpretation among stakeholders, regulatory overlaps, and enforcement gaps. Additionally, the absence of Extended Producer Responsibility (EPR) for selected waste streams limits accountability and impedes the shift toward more sustainable product design and waste collection systems. As new industries such as EVs, solar farms, and data centers emerge, the regulatory framework must evolve to address the increasing complexity and volume of scheduled waste they generate. Operational and Market Challenges Current waste management operations face major inefficiencies due to limited visibility of waste availability, poor coordination between waste generators and potential receivers, and uncertainty regarding recovery facilities. These gaps prevent effective waste valorization and inter-industry collaboration. Moreover, the lack of standardized technical criteria and approval procedures for products derived from scheduled waste creates significant barriers to market entry, regulatory compliance, and consumer trust. Similarly, the absence of widely recognized green labelling and certification mechanisms hampers market acceptance and limits access to sustainability-driven procurement opportunities. Public awareness of and confidence in using waste-derived products remains low, and a lack of coordinated governance further fragments national CE efforts.
SUMMARY OF CHALLENGES Financial and Institutional Gaps The transition to a CE model is also constrained by limited dedicated funding for research, recovery innovation, and technological advancement. While a cess mechanism has been proposed to incentivize progress, current financial support remains inadequate. Green procurement initiatives often fail to prioritize products derived from scheduled waste, missing a powerful lever for driving market transformation. Additionally, fiscal incentives meant to support CE adoption are underutilized due to weak advocacy, limited outreach, and poor stakeholder engagement. Capacity, Collaboration, and Innovation Barriers Capacity-building efforts tailored to CE in scheduled waste management are notably lacking, reducing the ability of regulators and industries to implement effective solutions. Furthermore, collaboration between industries and research institutions remains fragmented and often narrowly focused on regulatory compliance rather than innovation and scale-up. This is compounded by insufficient intellectual property (IP) protection mechanisms, which deter data sharing, limit cross- sector innovation, and reduce the commercialization potential of promising technologies.
PROPOSED STRATEGIC PRIORITIES
PROPOSED INITIATIVES AND STRATEGIES
THANK YOU

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EKONOMI KITARAN DALAM PENGURUSAN BUANGAN TERJADUAL STRATEGI NASIONAL KE ARAH INDUSTRI MAMPAN.pdf

  • 1.
    PEMBENTANGAN 3 EKONOMI KITARANDALAM PENGURUSAN BUANGAN TERJADUAL: STRATEGI NASIONAL KE ARAH INDUSTRI MAMPAN WAN MUJAHID BIN WAN HAMIDON AURECON LESTARI SDN BHD
  • 2.
    OVERVIEW OF THE PRESENTATION The presentationwill offer insights on circular economy implementation in scheduled waste management. The Need for Circular Economy 02 Circular Economy: An Overview Circular Economy in Scheduled Waste Management 03 01 Challenges and Way Forward 04
  • 3.
  • 4.
    MALAYSIA’S ECONOMIC TRANSFORMATION Agriculture& Commodities New Economic Policy (NEP) 1971 Manufacturing Rubber Tin Electric & Electronics Automobiles The 1970s marked a pivotal era in Malaysia’s economic transformation. Recognising the limitations of an agriculture-based economy, the government, under the New Economic Policy (NEP) launched in 1971, began to shift the economic focus towards industrialization.
  • 5.
    GROSS DOMESTIC PRODUCTVS SCHEDULED WASTE GENERATION 0 200,000 400,000 600,000 800,000 1,000,000 1,200,000 1,400,000 1,600,000 1,800,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 GDP (RM Million) Scheduled Waste Generation ('000 MT) Scheduled Waste Generation GDP (RM Mil) The rapid industrialisation that propelled Malaysia’s economic growth has introduced an increasingly urgent consequence: the escalating generation of scheduled waste. As manufacturing and processing activities intensified, the volume of hazardous by-products followed the same upward trajectory, revealing a direct link between economic progress and environmental pressure. This trend is clearly illustrated when we observe an upward trend in both Gross Domestic Product (GDP) and scheduled waste generation over recent years.
  • 6.
    SW 205 Waste gypsum 11.5% Chemical Industry 9.8% Metal Fabrications 10.5% MAJOR SCHEDULEDWASTE GENERATORS AND TYPES Contributed up to 78% of scheduled waste generation among industrial sectors over the nine-year period (2015- 2023). Power Plant Electric & Electronic Water Treatment Plant SW Prescribed Premises Contributed up to 74% of the overall SW generated over the nine-year period (2015- 2023). SW 104 Dust, slag, dross or ash containing heavy metal SW 204 Sludges containing one or several heavy metal SW 305 Spent lubricating oil 33.6% 9.2% 7.8% 8.4% 43.6% 15.1% 3.8%
  • 7.
    SCHEDULED WASTE GENERATIONOUTLOOK 0 2,000,000 4,000,000 6,000,000 8,000,000 10,000,000 12,000,000 14,000,000 16,000,000 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037 2038 2039 2040 2041 2042 2043 2044 2045 2046 2047 2048 2049 2050 Scheduled Waste Generation (MT) 11.3 mil MT 14.5 mil MT 7.5 mil MT 0.5 mil MT
  • 8.
    Gold Mine (100MT) Laptop Production (30MT) End-of-Life (30MT) 1Use (30MT) Take Make Use Dispose Gold Mine (70MT) Laptop Production (30MT) End-of-Life (30MT) 2 Use (30MT) (40MT) (60MT) LINEAR ECONOMY
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    COSTS OF LINEARECONOMY Depleting Natural Resources Degrading Environment Burdening the Landfills Losing Resources Finite resources like fossil fuels, minerals, and fresh water are consumed faster than they can regenerate. Resource extraction (mining, logging) harms ecosystems and biodiversity. High carbon emissions from production and waste contribute to global warming. Landfills are rapidly filling up with hazardous waste and more land is needed for waste disposal, reducing space for agriculture or urban development. Products are designed for disposal rather than reuse or recycling, leading to a loss of valuable materials. Valuable inputs (precious metals) are wasted instead of being reinvested into the production cycle Linear thinking, in essence, ignores the full lifecycle of materials. It focuses on output and growth, without accounting for where those materials come from or where they end up.
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    Gold Mine (100MT) Laptop Production (30MT) End-of-Life (30MT) 1Use (30MT) Take Make Use Dispose Recycle Gold Mine (70MT) Laptop Production (30MT) End-of-Life (30MT) Use (30MT) 2 (20MT) (10MT) (60MT) (20MT) Recycle (20MT) Next Cycle
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    Saving Energy andReducing Emissions Manufacturing new products from scratch often requires more energy and releases more greenhouse gases than reusing or recycling. For example, it takes far less energy to recycle aluminum than to extract it from raw bauxite. By focusing on reuse and recycling, a circular economy reduces greenhouse gas emissions, which helps combat climate change. Reducing Waste and Pollution Every year, hundred thousand of tons of scheduled waste are sent to landfills. Scheduled waste may be hazardous poses particular challenges for the environment. Through circular economy principles, waste can be minimized, reused, or repurposed rather than disposed of, helping protect natural resources and reducing pollution in land, water, and air. Conserving Resources Natural resources like water, minerals, and fossil fuels are finite, meaning they will eventually run out if we continue to use them irresponsibly. The circular economy helps conserve these resources by keeping materials circulating and extending their useful life. For instance, when electronics are recycled, valuable metals and components are recovered and can be reused in new products instead of mining fresh resources. Creating Economic Opportunities The shift to a circular economy creates new business opportunities in Malaysia and around the world. Repair services, remanufacturing businesses, and recycling facilities are just a few examples. As companies find innovative ways to extend the life of products and materials, they can lower costs, add value, and create jobs in emerging “green” industries. BENEFITS OF CIRCULAR ECONOMY
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    Principles: 1) Eliminate wasteand pollution 2) Circulate products and materials 3) Regenerate nature
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    CIRCULAR ECONOMY PRINCIPLES CircularEconomy Economic system that uses a systemic approach to maintain a circular flow of resources, by recovering, retaining or adding to their value, while contributing to sustainable development Principles Environmental system Social system Economic system 1. System thinking – Taking a life cycle perspective and apply long- term approach when considering their impacts on environmental, social and economic system. 2. Value creation – Recover, retain or add value by providing effective solutions that contribute to socio-economic and environmental value and efficient use of resources. 3. Value sharing – collaboration along the value chain or value network in an inclusive and equitable way, for benefit of society 4. Resource stewardship – Manage resources in a sustainable way 5. Resource traceability – Collect and maintain data to enable tracking of resources 6. Ecosystem resilience – develop and implement practices and strategies that protect and contribute to resilience and regeneration of ecosystems
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    Support Circular EconomyTransition Actions Contributing to a Circular Economy Creation of Added Value Value Retention Value Recovery Planning and design that enables optimization of product, resource circulation and prevention of waste generation Retaining the value, for both resource and product by extending the purpose of usage for as long and many as possible Actions that will ultimately lead to the conservation and continuous renewal of natural resources Recover the value of waste either by product, component or material with the goal to reintroduce them into new products or processes Regeneration of Ecosystems Creating a system that supports and enables circular economy within and between industries and organizations Residuals Input
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    Value Retention Retaining thevalue, for both resource and product by extending the purpose of usage for as long and many as possible • Reduce, Reuse, Repurpose • Maintenance and repair • Performance based approaches ACTIONS CONTRIBUTING TO CIRCULAR ECONOMY • Sharing to intensify use • Refurbishing • Remanufacturing Creation of Added Value Planning and design that enables optimization of product and resource circulation and prevention of waste generation • Design for circularity • Circular sourcing • Circular procurement • Process optimization • Industrial, regional or urban symbiosis
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    ACTIONS CONTRIBUTING TOCIRCULAR ECONOMY Regeneration of Ecosystems Actions that will ultimately lead to the conservation and continuous renewal of natural resources. Support Circular Economy Transition Creating a system that supports and enables circular economy within and between industries and organizations • Education and research • Innovation • Collaboration and Networks • Behaviour changes Value Recovery Recover the value of waste either by product, component or material with the goal to reintroduce them into new products or processes • Cascade resources • Recycling • Waste management • Material recovery • Energy recovery • Policy and legal system • Financial services • Digitalization
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    3 CIRCULAR ECONOMY INSCHEDULED WASTE IN MALAYSIA
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    TWELFTH MALAYSIA PLAN2021-2025 One of the success indicators: “Increased recycling of scheduled waste by 35%” 1. Strategy A2 - Creating an Enabling Ecosystem for the Circular Economy • Covers for the design, production, logistics, consumption and waste management of products and services. • Develop enabling framework mapping the entire value chain and stakeholders involved. • Introduce a blueprint for the circular economy related to solid waste, plastics, scheduled waste and agricommodities. • Develop relevant policies, legislation and economic instruments to facilitate the circular economy transition. 2. Strategy A3 - Implementing Environmentally Sound Management of Chemical and Hazardous Substances • Establishment of a dedicated task force to coordinate and oversee the overall management of chemical and hazardous substance from production to disposal stage. • Introduce a mechanism to monitor movement of chemical and hazardous substances and their wastes. • Construction of integrated scheduled waste treatment and disposal facilities to enable recovery, treatment, recycling and sound management of waste, therefore minimizing illegal dumping. Theme 3: Advancing Sustainability Game Changer VIII - Embracing the Circular Economy
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    National Circular Economy Councilof Malaysia • Chaired by the Prime Minister & led by the Ministry of Housing and Local Government (KPKT). • Technical working group undertake circular economy agenda for specific resources, and comprise of several representative ministries, such as Ministry of Natural Resource and Environmental Sustainability (NRES), Ministry of Works (KKR), Ministry of International Trade and Industry (MITI) and Ministry of Agriculture and Food Industries (MAFI). • The lead agency for the implementation of circular economy agenda for scheduled waste is DOE. NATIONAL CIRCULAR ECONOMY COUNCIL IN MALAYSIA Supreme Committee Chairman: Prime Minister Executive Committee Chairman: Minister of KPKT Technical Working Group Committee (TWG) Chairman: Secretary General of KPKT TWG 1 Plastics TWG 2 Water TWG 3 C&D TWG 4 Organic & Agricultural TWG 5 Scheduled Waste TWG 6 Steel, Paper, Glass, Fabric & Rubber NRES NRES KKR MAFI DOE MITI SECRETARIAT: KPKT
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    OTHER RELATED PLANSAND POLICIES New Industrial Master Plan 2030 (NIMP) Circular Economy Policy Framework for the Manufacturing Sector Green Technology Master Plan Malaysia 2017-2030 Circular Economy Blueprint for Solid Waste 2025-2035 Lead Ministry Ministry of International Trade and Industry (MITI) Ministry of International Trade and Industry (MITI) Ministry of Natural Resource and Environmental Science (NRES) Ministry of Housing and Local Government (KPKT) CE Considerations Under “Mission 3: Push Net Zero” where planning in works to develop a CE framework for the industry as a catalyst for new green growth areas Framework that emphasizes on the role of manufacturers in the CE value chain Under the goal to achieve sustainable utilization of natural resources, waste management was identified as one of the target key sectors. Has the goal to transform solid waste management from linear economy to circular economy which aims to close the loop of material cycle. Key Information Outline Malaysia’s direction in industrial development. Understanding the responsibilities of key enablers (manufacturers & industries) along value chain for implementation of CE. Highlights on the plan in the assessing the feasibility and market creation for green technology within the waste management sector. Guides Malaysia towards a circular economy while supporting economic prosperity and strengthens ecological resilience, reflecting the nation’s commitment to a cleaner and more sustainable future.
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    CIRCULAR ECONOMY FRAMEWORKFOR SCHEDULED WASTE Design-Driven Circular Economy Framework for Scheduled Waste Management 1. System thinking 2. Value creation 3. Value sharing Waste Hierarchy Cradle-to-Cradle Creating products and systems that are restorative and regenerative, with the aim of cycling indefinitely without creating waste or pollution. Ranks waste management options based on their resource efficiency in terms of: • Reduction/prevention of waste generation, • Reduction of overall impact from waste generation • Subsequent management of waste. Environmentally Sound Management (ESM) Cradle-to-Grave Safe management system which controls subject waste throughout its lifecycle: generation, collection, storage, transportation, treatment, recovery to disposal. The potential to reutilize hazardous waste shall not take precedence over ensuring proper management. Taking all practicable steps to ensure that hazardous wastes or other wastes are managed in a manner which will protect human health and the environment against the adverse effects which may result from such wastes Principle of Circular Economy: Circular Economy: Concepts for Waste Management Circular Economy: Concepts for Hazardous Waste Management Principles of Circular Economy Circular Economy Concepts for Waste Management Circular Economy Concepts for Hazardous Waste Management 1. Resource stewardship 2. Resource traceability 3. Ecosystem resilience
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    AVAILABLE PLANS FORSCHEDULED WASTES MANAGEMENT Strategic Plan for the Management of Scheduled Waste (PASCA), 2015 • Aims to provide governance guidance to the enforcement agency and all other SW management stakeholders • Promote waste management that improves environmental sustainability and economic competitiveness, based on the principle of “cradle-to-cradle” and through strengthening of the 4R principle. 1 2 DOE Strategic Plan 2021-2030 • Aims to improve DOE services align with the national development agenda through effective strategies • Initiative to 50% increase in recycling rate for scheduled waste by 2030, compared to 17% recycling rate in 2020
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    CURRENT LEGISLATION FORSCHEDULED WASTE MANAGEMENT Legal Provisions Environmental Quality Act 1974 • Governed by Section 34B (Prohibition against placing, depositing, etc of scheduled wastes) • No person is allowed to engage in the following activities without prior written approval from the Director General of the Department of Environment (DOE) Subsidiary Legislation under EQA 1974 • Environmental Quality (Scheduled Wastes) Regulations 2005; • Environmental Quality (Prescribed Conveyance) (Scheduled Wastes) Order 2005; • Environmental Quality (Prescribed Premises) (Scheduled Wastes Treatment and Disposal Facilities ) Order 1989; and • Environmental Quality (Prescribed Premises) (Scheduled Wastes Treatment and Disposal Facilities ) Regulations 1989. Department of Environment (DOE) Hazardous Substance Division is responsible for overseeing and enforcing the EQA (Scheduled Wastes) Regulations 2005
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    CURRENT SCHEDULED WASTEMANAGEMENT IN MALAYSIA
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    TERMS AND DEFINITIONS Sources: 1ISO 59004:2024 2 EU WFD (2018) 3 Basel Convention Glossary of Terms (2017) 4 MCMC Technical Code (2019) 5 Basel’s Technical Guidelines on the Environmentally Sound Co-Processing of Hazardous Waste in Cement Kilns (2011) 6 Environmental Quality (PP) (Scheduled Wastes Treatment and Disposal Facilities) Order 1989 Reduce 1 Measures to be taken before a substance, material or product has become waste, that reduce the amount of waste through increasing the efficiency in product manufacturer or by consuming fewer virgin materials (input). Reuse 1&2 Using again of discarded product or substance for the same or alternative purposes for which it was conceived that promotes resource efficiency without the necessity of pre-processing. This includes bringing waste back into use. Example 1: Using coal with lower ash content in coal fired power plant can reduce the generation of SW 104 – Bottom Ash. Example 2: Plant is designed for complete combustion which reduces generation of SW 104 – Ash. Example: Reuse is typically through special management such as: 1. Use as soil conditioner. 2. Use as neutralization agent. 3. Use for backfilling. 4. Reuse of contaminated container.
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    Sources: 1 ISO 59004:2024 2EU WFD (2018) 3 Basel Convention Glossary of Terms (2017) 4 MCMC Technical Code (2019) 5 Basel’s Technical Guidelines on the Environmentally Sound Co-Processing of Hazardous Waste in Cement Kilns (2011) 6 Environmental Quality (PP) (Scheduled Wastes Treatment and Disposal Facilities) Order 1989 Recovery 1,2&5 Recapturing and reutilizing recoverable resources specifically which will be use for reuse, remanufacturing, recycling or other methods that can add or retain value of a resource. This includes material recovery/reclamation, material reprocessing to be used as fuel and energy recovery; where energy recovery is only an end- of-life operation. Final Disposal 2&4 Operations that result in final disposition, placement or destruction of waste, which is not recovery even where the operation has a secondary consequence the reclamation of substances or energy. Treatment 2&4 Processing operations that change the biological or physico-chemical properties of waste, including interim operations which prepare waste prior to reuse, recovery or final disposal operations. Material Recovery: Recovery of Platinum Group Metals (PGMs) from waste catalysts. Energy Recovery: High-calorific-value scheduled waste such as oily sludge (SW306) is increasingly used as alternative fuel (AF) in co-processing . TERMS AND DEFINITIONS
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    TERMS AND DEFINITIONS AspectDisposal Recovery Main purpose To get rid of waste permanently (final placement, destruction). To extract value: reuse, recycle, or recover energy/materials. Examples - Landfilling - Recycling of materials - Deep injection - Composting/anaerobic digestion - Surface impoundment - Solvent regeneration - Release to water bodies - Energy recovery via incineration - Incineration without energy recovery - Use as fuel in cement kilns - Permanent storage - Reuse/refurbishment of products Energy aspect If heat or energy is produced, it’s only incidental and not used productively. Energy recovery is intentional and efficient: e.g., electricity, steam, hot water, or district heating. Incineration Incineration without energy recovery → classified as disposal. Incineration with energy recovery (meeting efficiency standards) → classified as recovery. Outcome No further use; waste is destroyed or permanently stored. Waste substitutes for raw materials or fuels; outputs are fed back into the economy.
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    SW MANAGEMENT INTHE CONTEXT OF CIRCULAR ECONOMY
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    Physical Chemical BiologicalThermal Relies on physical characteristics of the waste materials in order to separate the hazardous waste constituents Using chemical reagents to change the chemical structure of the constituents Microorganisms degrade or detoxify the hazardous waste components present Reduction of volume and toxicity of the wastes using high temperature Examples Absorption, Evaporation, Filtration, Gravity Separation, Magnetic Separation, Sedimentation, Microwave Radiation, Thickening, Ultrasonic Separation SW Code* All SW except for SW203, SW403, SW431 and SW501 Examples Chemical Dehalogenation, Fenton Process, Hydrolysis, Immobilization, Forced Leaching, Neutralization, Redox, Ozone-based Technology, Solvent Extraction SW Code* All SW Examples Aerobic Treatment Units, Biological Reactors, Anaerobic Digestion Systems, Bioleaching, Bio- Reclamation, Land Farming, Vermicomposting SW Code* SW101, SW102, SW103, SW104, SW105, SW106, SW107, SW108, SW110, SW202, SW204, SW205, SW309, SW318, SW319, sW320, SW326, SW401, SW405, SW412, SW416, SW420, SW425, SW426, SW427, SW429, SW430 Examples Autoclaving, Calcination, Gasification, Molten Salt Destruction, Pyrolysis, Incineration, Wet Air Oxidation SW Code* All SW except for SW431 TECHNOLOGIES CONTRIBUTING TO CIRCULAR ECONOMY
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    PROGRESS TOWARDS CIRCULARECONOMY • The proportion of scheduled waste subjected to recovery processes including off-site recovery facilities, special management (excluding scheduled wastes sent to sanitary landfills or disposed of by slow burning) and export to foreign facilities has remained relatively stable at around 1.42 million MT from 2015 to 2023. • Although 32% of the scheduled waste is already directed toward recovery in 2023, true progress in circularity will be achieved when on-site storage is reduced and these materials are reintroduced into the market for further reuse or recovery. • This current recovery or recycling rate must be increased by another 13% to achieve the target 50% recycling rate of scheduled waste in 2030. - 1,000,000 2,000,000 3,000,000 4,000,000 5,000,000 6,000,000 7,000,000 8,000,000 2015 2016 2017 2018 2019 2020 2021 2022 2023 Scheduled Waste Generation (MT) Total Waste Generated Recovery 32% 23% 18% 25% 32% 49% 54% 60% 40% 2030 50%
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    Inconsistent domestic supply Marketability ofthe recovered materials/products Lack of platform to exchange knowledge, technology, etc. High investment cost Competition with illegal market Lack of incentives Lack of standard and guidelines Lack of awareness CHALLENGES
  • 34.
    SUMMARY OF CHALLENGES Regulatoryand Policy Challenges Malaysia’s scheduled waste regulations are in urgent need of revision to align with circular economy (CE) objectives. Overclassification of non-hazardous materials as scheduled waste restricts resource recovery and industrial reuse, while blanket bans on the importation of certain waste streams hinder industrial growth even when environmental compliance is assured. Existing policies also lack specific provisions for CE implementation, leading to inconsistent interpretation among stakeholders, regulatory overlaps, and enforcement gaps. Additionally, the absence of Extended Producer Responsibility (EPR) for selected waste streams limits accountability and impedes the shift toward more sustainable product design and waste collection systems. As new industries such as EVs, solar farms, and data centers emerge, the regulatory framework must evolve to address the increasing complexity and volume of scheduled waste they generate. Operational and Market Challenges Current waste management operations face major inefficiencies due to limited visibility of waste availability, poor coordination between waste generators and potential receivers, and uncertainty regarding recovery facilities. These gaps prevent effective waste valorization and inter-industry collaboration. Moreover, the lack of standardized technical criteria and approval procedures for products derived from scheduled waste creates significant barriers to market entry, regulatory compliance, and consumer trust. Similarly, the absence of widely recognized green labelling and certification mechanisms hampers market acceptance and limits access to sustainability-driven procurement opportunities. Public awareness of and confidence in using waste-derived products remains low, and a lack of coordinated governance further fragments national CE efforts.
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    SUMMARY OF CHALLENGES Financialand Institutional Gaps The transition to a CE model is also constrained by limited dedicated funding for research, recovery innovation, and technological advancement. While a cess mechanism has been proposed to incentivize progress, current financial support remains inadequate. Green procurement initiatives often fail to prioritize products derived from scheduled waste, missing a powerful lever for driving market transformation. Additionally, fiscal incentives meant to support CE adoption are underutilized due to weak advocacy, limited outreach, and poor stakeholder engagement. Capacity, Collaboration, and Innovation Barriers Capacity-building efforts tailored to CE in scheduled waste management are notably lacking, reducing the ability of regulators and industries to implement effective solutions. Furthermore, collaboration between industries and research institutions remains fragmented and often narrowly focused on regulatory compliance rather than innovation and scale-up. This is compounded by insufficient intellectual property (IP) protection mechanisms, which deter data sharing, limit cross- sector innovation, and reduce the commercialization potential of promising technologies.
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