Circular Economy Policy Framework for the Manufacturing Sector in Malaysia

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Category: Executive

Document Type: Policy

Role: Main

Malaysia's Circular Economy Policy Framework for Manufacturing Targets 2030 Goals

The Circular Economy Policy Framework for the Manufacturing Sector, published by the Ministry of Investment, Trade and Industry (MITI) in 2024, serves as a guiding document for Malaysia's transition towards a circular economy within its manufacturing sector. Aligned with the National Industrial Master Plan 2030 (NIMP 2030), the framework promotes a restorative industrial model by encouraging practices such as closed-loop material flows, minimising raw material consumption, enhancing product recyclability, and increasing the availability and use of secondary feedstocks. The primary purpose is to support manufacturers in adopting circular practices and contribute significantly to achieving national climate goals. While the framework outlines strategic directions and goals, specific obligations, detailed compliance dates, or regulatory mechanisms are not detailed in the provided text. However, the framework projects significant outcomes by 2030, including generating RM16 billion in savings, reducing CO₂ emissions by 6.5 million tonnes annually, and diverting 14 million tonnes of waste from landfills each year. The affected sector is primarily manufacturing.

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Full text:



e ISBN No. : 978-967-0020-47-1
PUBLISHED BY:
MINISTRY OF
INVESTMENT, TRADE AND INDUSTRY
Menara MITI, No. 7, Jalan Sultan Haji Ahmad Shah,
50480 Kuala Lumpur, Malaysia.
Tel : 603-8000 8000
Fax : 03-6206 4693
Email : webmiti@miti.gov.my
© MINISTRY OF INVESTMENT, TRADE AND INDUSTRY
MITI, 2024
All rights reserved
No part of this document may be reproduced, stored in a retrieval system or transmitted, in any form or by
any means, electronic, mechanical, photocopying, recording or otherwise, without prior permission from
Ministry of Investment, Trade and Industry (MITI). The information in this document has been updated as
accurately as possible until the date of publication.

Table of Contents
Glossary ............................................................................................................................................4
Foreword ............................................................................................................................................6
Acknowledgements ...............................................................................................................................8
Executive Summary ..............................................................................................................................9
Methodology ........................................................................................................................................11
1 Overview ....................................................................................................................................14
1.1 Definition and Scope of the Framework ............................................................................14
1.2 Approach to Circular Economy .........................................................................................16
2 Global Trends Driving the Circular Economy in Malaysia .....................................................17
2.1 Sector Trends in Manufacturing ........................................................................................17
2.2 Global Trade Trends .........................................................................................................17
2.3 Global FDI Trends .............................................................................................................19
3 Current State of the Circular Economy in Malaysia ...............................................................22
3.1 Manufacturing and Recycling Sectors ..............................................................................22
3.2 Benchmarking Malaysia Against Other Countries .............................................................24
3.3 Benchmarking Circularity Policies .....................................................................................24
3.4 Benchmarking Circularity Indicators .................................................................................27
4 Circular Economy Policy Framework for the Manufacturing Sector ....................................30
4.1 Aspirations ........................................................................................................................30
4.2 Summary of Initiatives .......................................................................................................33
4.3 Focus Area A: Circular Input .............................................................................................34
4.4 Focus Area B: Efficient Process ........................................................................................36
4.5 Focus Area C: Sustainable Output ....................................................................................39
4.6 Enablers ............................................................................................................................43
4.7 Prioritisation of Initiatives and Enablers ............................................................................52
5 Implementation Plan .................................................................................................................54
6 Conclusion .................................................................................................................................57
7 Appendix ....................................................................................................................................58

Circular Economy Policy Framework for

Tags: Circular Economy, Waste, Industry, Policy, Mitigation, Climate Change

Sector: Industry;Waste;Economy-wide

Original Source