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Malaysia

Environment to Malaysia

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(Last updated: 31 Jul 2007)

Trends and opportunities

The market

Water and wastewater

Under the Federal constitution in Malaysia, each state is responsible for maintaining and developing its own water supply. Public water supplies in Malaysia are administered (planned, designed, constructed, operated and maintained) by three local authorities:  The State Public Works Department (PWD), The State Water Supply Department (WSD) and The State Water Board (SWB).


The water supply system in Malaysia is focused on providing adequate and safe water for domestic users and to meet the needs of industry and the agricultural sector. Emphasis is given to the provision and conservation of potential fresh water sources and the upgrading and rehabilitation of the existing water supply system to improve its efficiency.


Interstate and interbasin water transfers are currently being expanded to address the problem of uneven distribution of supply, particularly in states suffering from water shortage.


In the future, it has been proposed that the Federal Government take over water management from State Governments to give greater focus on long-term water resource planning and development. One of the initiatives being undertaken is the setting up of a Water and Sanitation Commission to study available water resources and the possibilities of transferring water supply from one state to another.


About 90 to 95 per cent of the total volume of industrial wastewater originates from food and beverage processing, industrial chemicals and products, and textile plants or dye mills. The major polluters are small to medium scale industries (SMIs).


The SMIs have been encouraged to adopt cleaner technologies in their production processes. To increase the general environmental awareness among the SMIs, SIRIM Berhad intends to intensify efforts to collect and disseminate information on cleaner technologies. Training programs such as environmental costing, auditing, reporting and lifecycle assessments and ISO 14001 will be conducted to encourage firms to adopt company-wide environmental management practices.

Solid waste

The volume of solid waste generated in Malaysia is estimated to exceed 15,000 tonnes daily. The current system of manual labour, waste collection trucks and open dumps for disposal suffers from a lack of modern equipment and environmental controls.


The housing and local government is drafting a master plan on solid waste management, which includes recycling campaigns, landfills and installation of incinerators. By just recycling 22 per cent of the five million tonnes of waste, it is expected to help save the government RM88 million a year.


In addition to recycling, the government is also promoting the development of a new source of energy, biomass, which is environment-friendly and renewable.


There are 107 categories of hazardous wastes as defined by DOE. These include waste generated by the following: petroleum and oil refiners, pharmaceutical, rubber processing, chemical, and electronics and semiconductor industries. Many of these industries store their waste in drums on site or dump them into surface drains on unsecured treatment sites.

Air

Haze that occurs during dry seasons is attributed to industrial air pollution, forest fires, vehicular fumes, emission from power stations, boilers, furnaces and incinerators, and open burning activities. Open burning is routinely carried out at approximately 200 waste disposal sites throughout Malaysia.


The government is also taking steps to regulate vehicular emissions through changes to its Motor Vehicle Regulations. Regulations to mandate the use of catalytic converters in new vehicles were recently approved by the Malaysian Government. The regulations also call for the establishment of vehicular monitoring stations.

Opportunities

The following environmental sectors offer the best opportunities for Australian technologies:

  • The supply of wastewater treatment systems, monitoring equipment, wastewater recycling equipment, sludge dryers and industrial purification systems. Equipment is also needed for the clean up of ground water and rivers.
  • The supply of municipal sewerage treatment plant and equipment to Indah Water Konsortium (IWK) and property developers Indah Water contracts the building of treatment plants and purchases equipment on an open tender basis. The immediate demand by IWK is for new sewerage treatment parts such as pumps, aerators, mixers, filters, screens etc. and water monitoring equipment. The mid to long-term demand is for secondary treatment plants, wastewater sludge treatment and recycling, and waste water technologies.
  • Opportunities exist for waste minimisation technologies, hazardous waste (toxic metal and low radioactive sludge, medical waste, etc.) recycling, and disposal and bio-remediation technologies. There is also an urgent need for oil reclamation technology to recover used oils from industries and ship-based sludges.
  • In the air quality area, opportunities exist for vehicle emission monitoring equipment, industrial air scrubbers, stack emission analysers and control equipment, dust collectors, indoor air pollution control systems and air monitoring equipment. Factories will also be required to install stack-monitoring equipment in the near future. The first phase of this process will impact on power generation stations and boiler plants.
  • The level of environmental analysis capability in Malaysia remains low. Opportunities are available for highly skilled Australian companies to partner with Malaysian companies for environmental auditing, management systems and, to a lesser degree, impact assessments. Risk analysis, a new requirement for Environmental Impact Assessment associated with petroleum and chemical industries, is being undertaken by foreign firms because of the scarcity of skilled personnel in country.
  • The privatisation of solid waste management should provide opportunities to supply leading edge technologies, equipment and landfill services. Opportunities also exist for small and medium-sized municipal waste incinerators, waste recycling and composting, landfill design and landfill leachate treatment services.
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Tariffs, regulations and customs

There are no significant barriers to the import of environment-related equipment and accessories to Malaysia. Most goods can be imported under an open general license, although some may require specific import licences. Import duties and tariff rates are in accordance with the Malaysian Trade Classification and Custom Duties Order.

Industry standards

The Malaysian Government instituted a set of environmental regulations that are embodied in the Environmental Quality Act (EQA) of 1974, and its subsequent amendments. The Department of Environment under the Ministry of Science, Technology and Environment (MOSTE) is the federal agency responsible for implementing and enforcing the EQA.


The Standard and Industrial Research Institute of Malaysia Berhad has been appointed to develop and regulate national standards in Malaysia's water supply industry according to an internationally recognised system and also to follow international standards adhered to by developed nations such as the UK, the EEC, Australia, USA and Japan.

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Marketing your products and services

Market entry

There is little production of environmental protection equipment in Malaysia. Most local companies involved in the industry act as agents for foreign suppliers of equipment and technology. However, the government is keen to enhance the development of technologies by local manufacturers and provides various incentives to approved companies (eg. pioneer status, investment tax allowances, exemption from import duties, etc).


This offers excellent opportunity for Australian companies to form joint venture or technology transfer arrangements with a local partner. Many local companies have some assembly and manufacturing capabilities for products such as pipes, tanks, screens, presses, dryers and pressure vessels. This offers an opportunity for Australian companies to market advanced technology solutions and consultancy to the local industry.


International tenders are generally open to pre-qualified, registered suppliers and preference is usually given to foreign suppliers with local distributors or agents. To successfully bid for a tender, Australian companies are advised to team up with a local partner.


To promote its environmental products, services and technologies, Australian companies are encouraged to participate in water-related and waste exhibitions and conferences held annually and bi-annually.

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Links and industry contacts

Environment–related resources

The Malaysian Water Association – www4.jaring.my/mwa
Indah Water Konsortium - www.iwk.com.my
Kualiti Alam – www.kualitialam.com.my
Alam Flora – www.alamflora.com.my
Puspakom – www.puspakom.com.my
Puncakniaga Sdn Bhd – www.puncakniaga.com.my
Syarikat Pengeluar Air Sungai Selangor Sdn Bhd – www.splash.com.my

Government, business and trade resources for Malaysia

Ministry of Science, Technology and Environment Malaysia – www.customs.gov.my
Public Works Department Malaysia –  www.jkr.gov.my
Royal Customs and Excise Department Malaysia – www.customs.gov.my
Department of Environment – www.jas.sains.my
The Standard and Industrial Research Institute of Malaysia Berhad – www.sirim.my

Media

The Star - Section 2 - Environment – www.thestar.com.my

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Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

  • Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
  • Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
  • Administers the Export Market Development Grants scheme.
  • Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
  • Provides advice to the Australian Government on its trade and investment development activities.
  • Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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