Malaysia

Existing Policies Related to Extended Producer Responsibility (EPR)

While there are currently no specific policies or laws on EPR in Malaysia, a number of existing regulations related to solid waste management (SWM) have laid the groundwork for an EPR system. Section 102 of the Solid Waste and Public Cleansing  Management Act 2007 (Act 672) grants the Minister charged with the responsibility for solid waste and public cleansing management the authority to introduce EPR through take-back and deposit refund systems. Furthermore, the National Solid Waste Management Policy 2016 provides a comprehensive framework for SWM, emphasizing the principles of reduce, reuse, and recycle (3R), which align with EPR objectives. For states not adopting Act 672, namely Kelantan, Terengganu, Perak, Selangor and Penang, the law applicable would be the Local Government Act 1976 (Act 171), which generally provides for pollution, where Part VIII, regulates pollution of streams from solid or liquid refuse. Another general provision on addressing pollution can be found in the Environmental Quality Act 1974 (Act 127), where the term ‘waste’ is defined to include solid waste. Section 24 of the Act prohibits pollution of the soil states, while Section 29 prohibits the discharge of wastes into Malaysian waters.

Sabah and Sarawak have different sets of laws governing solid waste management, as Act 672 covers only Peninsular Malaysia and the federal territories. In Sabah, the applicable laws are the Local Government Ordinance 1961, the Public Health Ordinance 1960, and some By-Laws which include Uniform (Anti-Litter) By-laws 2010, Uniform (Beauty and Health Care Centre) By-laws 2014, Uniform (Compounding Offences) By-laws 2013, and Conservancy and Hygiene By-laws. The applicable laws in Sarawak are the Natural Resources and Environment Ordinance, the Local Authorities Ordinance 1996, and the Protection of Public Health Ordinance 1999.

In line with these efforts, the Malaysian Government has devised several strategies and action plans that incorporate EPR to enhance waste management and promote resource circularity as delineated below.

  1. National Sustainable Consumption and Production (SCP) Blueprint (2016-2030), which identifies the roles and responsibilities of consumers and industries in achieving a circular economy waste system. 

  2. Green Technology Master Plan 2017-2030, proposing the development of EPR policies to facilitate growth in resource recovery while outlining the responsibilities of industries in product development and end-of-life goods collection and disposal.

  3. Malaysia’s Roadmap Towards Zero Single-Use Plastics 2018-2030, which implements pollution charges on consumers and manufacturers of single-use plastics among its strategies.

  4. National Cleanliness Policy (2020-2030), advocating for EPR implementation to promote recycling within the circular economy policy cluster.

  5. Twelfth Malaysia Plan 2021-2025, prioritizing in the adoption of the EPR approach, alongside user-pay and polluter-pay principles, to support the circular economy.

Malaysia Plastics Sustainability Roadmap 2021-2030, which outlines five actions to transition to a sustainable plastics economy, including the development of an EPR scheme and the establishment of a Producer Responsibility Organisation (PRO) to coordinate the operation of the EPR scheme.

Table 1. Summary of policies, plans, and regulations related to EPR for packaging in Malaysia.

Policies, Plans, and Regulations

Promulgation Date

Status

Local Government Act 1976 (Act 171)

1976

In effect

Environmental Quality Act 1974 (Act 127)

Amended by the Local Government (Amendment) Act 2007 (Act A13111)

1974

1 September 2011

In effect

Solid Waste and Public Cleansing Management Act 2007
(Act 672)

28 August 2007

In effect

National Solid Waste Management Policy

2016

In effect

National Sustainable Consumption and Production (SCP) Blueprint (2016-2030)

January 2016

In effect

Green Technology Master Plan 2017 - 2030

2017

In effect

Malaysia’s Roadmap Towards Zero Single-Use Plastics 2018 – 2030

2018

In effect

National Cleanliness Policy (2020 - 2030)

2019

In effect

Twelfth Malaysia Plan 2021-2025

2021

In effect

Malaysia Plastics Sustainability Roadmap 2021-2030

2021

In effect

Status of EPR Policy Development

Malaysia is presently undertaking the implementation of business led voluntary EPR schemes, which are mostly led by the Malaysian Recycling Alliance (MAREA), a voluntary PRO initiated by 10 fast-moving consumer goods (FMCG) companies in January 2021. At the same time, the government is developing the EPR governance framework with the aim of transitioning to a mandatory scheme by 2026.

The roadmap for EPR implementation is laid out in the table below, with reference to the Malaysia Plastics Sustainability Roadmap 2021-2030.

Table 2. Roadmap for Malaysia’s EPR implementation.

EPR Scheme

Process

Description

Voluntary scheme

(2021-2025)

Inception of voluntary EPR
(2021-2022)

  • Preparation for EPR adoption and readiness through advocacy and capacity building programmes conducted collaboratively by the government, industry associations, and relevant organisations.

  • Initiation of the INSPiRE programme, starting in 2022, aimed at driving industrial behavioral change towards sustainability and circularity. 

  • Development of EPR governance framework to ensure a seamless transition from a voluntary to a mandatory EPR scheme.

Adoption of voluntary EPR (2023-2025)

  • Introduction of a nationwide voluntary EPR scheme, with the expectation of active industry participation.

Mandatory scheme
(2026-onwards)

Implementation of mandatory EPR for packaging

  • Full implementation of mandatory EPR for packaging, with industries contributing to eco-modulated fee, which will fund the operational cost of the scheme, overseen by an independent PRO.

Malaysia

Existing Policies Related to Extended Producer Responsibility (EPR)

While there are currently no specific policies or laws on EPR in Malaysia, a number of existing regulations related to solid waste management (SWM) have laid the groundwork for an EPR system. Section 102 of the Solid Waste and Public Cleansing  Management Act 2007 (Act 672) grants the Minister charged with the responsibility for solid waste and public cleansing management the authority to introduce EPR through take-back and deposit refund systems. Furthermore, the National Solid Waste Management Policy 2016 provides a comprehensive framework for SWM, emphasizing the principles of reduce, reuse, and recycle (3R), which align with EPR objectives. For states not adopting Act 672, namely Kelantan, Terengganu, Perak, Selangor and Penang, the law applicable would be the Local Government Act 1976 (Act 171), which generally provides for pollution, where Part VIII, regulates pollution of streams from solid or liquid refuse. Another general provision on addressing pollution can be found in the Environmental Quality Act 1974 (Act 127), where the term ‘waste’ is defined to include solid waste. Section 24 of the Act prohibits pollution of the soil states, while Section 29 prohibits the discharge of wastes into Malaysian waters.

Sabah and Sarawak have different sets of laws governing solid waste management, as Act 672 covers only Peninsular Malaysia and the federal territories. In Sabah, the applicable laws are the Local Government Ordinance 1961, the Public Health Ordinance 1960, and some By-Laws which include Uniform (Anti-Litter) By-laws 2010, Uniform (Beauty and Health Care Centre) By-laws 2014, Uniform (Compounding Offences) By-laws 2013, and Conservancy and Hygiene By-laws. The applicable laws in Sarawak are the Natural Resources and Environment Ordinance, the Local Authorities Ordinance 1996, and the Protection of Public Health Ordinance 1999.

In line with these efforts, the Malaysian Government has devised several strategies and action plans that incorporate EPR to enhance waste management and promote resource circularity as delineated below.

  1. National Sustainable Consumption and Production (SCP) Blueprint (2016-2030), which identifies the roles and responsibilities of consumers and industries in achieving a circular economy waste system. 

  2. Green Technology Master Plan 2017-2030, proposing the development of EPR policies to facilitate growth in resource recovery while outlining the responsibilities of industries in product development and end-of-life goods collection and disposal.

  3. Malaysia’s Roadmap Towards Zero Single-Use Plastics 2018-2030, which implements pollution charges on consumers and manufacturers of single-use plastics among its strategies.

  4. National Cleanliness Policy (2020-2030), advocating for EPR implementation to promote recycling within the circular economy policy cluster.

  5. Twelfth Malaysia Plan 2021-2025, prioritizing in the adoption of the EPR approach, alongside user-pay and polluter-pay principles, to support the circular economy.

Malaysia Plastics Sustainability Roadmap 2021-2030, which outlines five actions to transition to a sustainable plastics economy, including the development of an EPR scheme and the establishment of a Producer Responsibility Organisation (PRO) to coordinate the operation of the EPR scheme.

Table 1. Summary of policies, plans, and regulations related to EPR for packaging in Malaysia.

Policies, Plans, and Regulations

Promulgation Date

Status

Local Government Act 1976 (Act 171)

1976

In effect

Environmental Quality Act 1974 (Act 127)

Amended by the Local Government (Amendment) Act 2007 (Act A13111)

1974

1 September 2011

In effect

Solid Waste and Public Cleansing Management Act 2007
(Act 672)

28 August 2007

In effect

National Solid Waste Management Policy

2016

In effect

National Sustainable Consumption and Production (SCP) Blueprint (2016-2030)

January 2016

In effect

Green Technology Master Plan 2017 - 2030

2017

In effect

Malaysia’s Roadmap Towards Zero Single-Use Plastics 2018 – 2030

2018

In effect

National Cleanliness Policy (2020 - 2030)

2019

In effect

Twelfth Malaysia Plan 2021-2025

2021

In effect

Malaysia Plastics Sustainability Roadmap 2021-2030

2021

In effect

Status of EPR Policy Development

Malaysia is presently undertaking the implementation of business led voluntary EPR schemes, which are mostly led by the Malaysian Recycling Alliance (MAREA), a voluntary PRO initiated by 10 fast-moving consumer goods (FMCG) companies in January 2021. At the same time, the government is developing the EPR governance framework with the aim of transitioning to a mandatory scheme by 2026.

The roadmap for EPR implementation is laid out in the table below, with reference to the Malaysia Plastics Sustainability Roadmap 2021-2030.

Table 2. Roadmap for Malaysia’s EPR implementation.

EPR Scheme

Process

Description

Voluntary scheme

(2021-2025)

Inception of voluntary EPR
(2021-2022)

  • Preparation for EPR adoption and readiness through advocacy and capacity building programmes conducted collaboratively by the government, industry associations, and relevant organisations.

  • Initiation of the INSPiRE programme, starting in 2022, aimed at driving industrial behavioral change towards sustainability and circularity. 

  • Development of EPR governance framework to ensure a seamless transition from a voluntary to a mandatory EPR scheme.

Adoption of voluntary EPR (2023-2025)

  • Introduction of a nationwide voluntary EPR scheme, with the expectation of active industry participation.

Mandatory scheme
(2026-onwards)

Implementation of mandatory EPR for packaging

  • Full implementation of mandatory EPR for packaging, with industries contributing to eco-modulated fee, which will fund the operational cost of the scheme, overseen by an independent PRO.