Malaysia Malaysia Publishes Circular Economy Policy Framework for Manufacturing Sector

Malaysia Publishes Circular Economy Policy Framework for Manufacturing Sector

On September 25, 2024, the Malaysian Ministry of Investment, Trade and Industry (MITI) published the “Circular Economy Policy Framework for the Manufacturing Sector in Malaysia“, which outlined a policy framework for the circular economy (CE) in the manufacturing sector. The framework has specified a timeline for the implementation of various policies and the scheduled promulgation of laws and regulations. Among them were mentions of the introduction of an Extended Producer Responsibility (EPR) system by 2029, imposition of obligations such as use of circular materials (recycled, reused, and remanufactured materials) in products and the separation of non-hazardous industrial waste.

 

Year 2030 Targets

Targets by year 2030 was set for the following four themes.

Theme Aspiration Proposed Targets
Circular Input
  • Robust local CE industry with a consistent supply of circular materials
  • Closed production loops reinforced by strong supply chain linkages, including with local CE industry
  • 4 times the circular material use rate vs. year 2019 (0.3% in 2019)
Efficient Process
  • High-quality products produced with resource-efficient design, production & distribution
  • Technological excellence and productivity at the core of manufacturing companies
  • 30% increase of USD generated per ton of raw material vs. year 2019 (USD 539/ton in 2019)
Sustainable Output
  • Industry-leading reduction of manufacturing waste at source through Best Environmental Practices (BEP)
  • Innovative redirection of by-products for use in other manufacturing applications
  • Industry Waste Intensity reduction by 20% vs. year 2019
Socioeconomic Impact
  • Hub for innovation and entrepreneurship in CE
  • Society where CE practices enhance people’s quality of life through good jobs and less pollution
  • Achieving a just transition towards CE
  • Gross Value added from circular economy 3 times vs. year 2019 (RM6.3 billion in 2019)
  • 2 times jobs from circular economy vs. year 2019 (90,000 in 2019)

 

Implementation Timeline

The upcoming implementation will begin as early as the 4th quarter of 2024 (Oct ~ Dec 2024). Below shows the implementation timeline.

2024 4th quarter
  • Drive transition to mandatory EPR adoption amongst manufacturers
  • Develop guidelines for manufacturers on classification of non-hazardous industrial output / waste
  • Promote circular business models
2025
  • Create critical material trade list
  • Launch of CE certifications
  • Support export of goods with CE requirements & attract high-value CE investments
  • Establish robust national CE metrics and tracking mechanism
2026
  • Publication of CE monitoring system and announce live dashboard
  • Upskilling Programs
2027
  • Legislation of minimum circular content requirements especially for packaging, electric & electronic equipment, consumer goods
  • Mandatory sorting of non-hazardous waste
  • Business-to-business waste marketplace
  • Publication of CE taxonomy (e.g. Standardization of definitions such as “Recycle”, “Reuse”)
2028
  • Publication of EPR recommendation paper
2029
  • Mandatory minimum circular content requirement in effect
  • Legislation of mandatory EPR
  • Launch of mandatory labelling for CE products

 

Regardless, details such as provisions to be included in the EPR legislations, percentages of minimum use of circular materials were not specified.

 

Download the document from link below:
https://www.nimp2030.gov.my/nimp2030/resources/NIMP%20Banner/CIRCULAR_ECONOMY_POLICY_FRAMEWORK.pdf

Author / Responsibility

AOKI Kenji

Senior Consultant, EnviX Ltd.
General Director, E&H Consulting Co., Ltd.

Business Performance

Expertise in EHS (environment, health and safety) consulting in ASEAN region.
- Environmental regulations updating
- Chemical regulations consulting

Background

MSc in Earth Science, The University of Tokyo

AOKI Kenji