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Going green: Budget 2023 can include recycling programmes and zero waste initiatives to encourage people to recycle plastic in exchange for rebates to purchase basic necessities.

AT the Paris Agreement in 2015, Malaysia pledged to reduce its greenhouse gas (GHG) emission intensity of gross domestic product (GDP) by 45% in 2030.

The government then once again reiterated its stance in advancing green aspirations by setting an ambition to become a carbon-neutral nation by 2050 as laid out in the 12th Malaysia Plan (12MP).

Under Theme 3: Advancing Sustainability of the 12MP, embracing a circular economy is amongst the key initiatives of Malaysia’s aspirations towards sustainability.

Now, more than ever, we continue to consume non-renewable resources such as metal ores and fossil fuels, a practice that has taken a significant toll on the environment and is ultimately not sustainable.

To further exacerbate this issue, the path of waste is rather linear – flowing in one direction from production to consumer to litter, incineration or landfill.

In 2021 alone, it is estimated that Malaysians have generated 38,427 tonnes of waste per day, of which 82.5% are disposed in landfills.

In 2022, the amount of Municipal Solid Waste (MSW) collected is projected to reach 14 million tonnes per annum, enough to fill the Petronas Twin Towers every seven days.




Adopting a circular economy presents us with an alternative way to the “take-make-waste” living, in which practices of reusing resources and refurbishing existing products are the norm.

The life cycle of products is extended, and waste can be reduced to the minimum. Transitioning to the circular economy model also translates to reduced emissions of GHG as resources are being kept in the loop for an extended time.

Ultimately, the model can help meet Malaysia’s climate targets by transforming the way we produce and consume goods.

This pro-environmental economic model has also been proven to induce visible changes in the labour market.

Within just two years of launching its ambitious Circular Dutch by 2050 programme, the Netherlands rolled out 85,000 circular initiatives including 420,000 jobs.

Companies may also benefit from the circular economy model, as more job opportunities mean more business growth potential, and existing companies will have a secure and more sustainable supply chains since dependency on finite resources will be reduced.

Malaysia has every potential to transition to a circular economy, and this is where the government plays an instrumental role to create enabling conditions.

Aside from the Environmental Quality Act 1974, Solid Waste and Public Cleansing Management Act 2007 and Environmental Quality (Scheduled Waste) Regulation 2005, there is currently a lack of legal framework that promotes circularity.



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