WASTE

INDUSTRY
AND ITS
POTENTIAL

Presented by:

Mohd Radhi Abdullah

CEO/Managing Director
Meishang Environmental (M) Sdn.. Bhd.
The murmur surrounding the notion
of the Circular Economy is growing
lounder and louder and is now
building into a crescendo. No longer
consigned to the periphery of the
industrial economy or simply
cleaning away the mess, waste
management if it is planned
correctly, could control the
thousands of tonnes of raw
materials as they cascade through
the economy.

WASTE MANAGEMENT WORLD MAY-JUNE 2016

The potential for the taking
The real driver of the Circular Economy is economic in a bid to protect corporate bottom lines;

The near future will not be merely a revolution in waste technology BUT the potential
of the next industrial revolution;

The notion of waste as resources or secondary raw material when linked to

innovative science can lead to increased productivity and impact wealth creation;

The current low material and commodity prices are temporary. As supplies
dwindle and population increases, material costs could account for well over 40%
of total costs;

The existing legislation governing waste in Malaysia can be tweaked towards materials
management legislation and away from prescriptive waste legislation to create a
level playing field between primary and secondary raw materials and their future major
role in manufacturing; and

The time is NOW for the waste sector to take advantage of the paradigm shift in material flows
and this can be achieved via new business models that converge and transform the sector
towards a Circular Economy.
Business-as-usual NOT sustainable
Strengthen Disaster Management
Strengthen Governance to Drive Transformation
Establish Suitable Financial Mechanism
Creation of Green Market
Increasing Percentage of Renewable Energy Adoption
Encourage Low Carbon Mobility
Integrated Approach to Waste Management

The current practice of a Linear Production-Consumption-Disposal System is unsustainable and

needs to be transformed

RAW MATERIALS DESIGN PRODUCTION DISTRIBUTION CONSUMPTION COLLECTION DISPOSAL

Convert and Align to RMK-11, CE, SCP & HWM
Cascading concept to implementation - waste families

All seven types of waste - solid, agricultural, construction, radioactive, mining, sewage,
and scheduled waste - will be managed in a holistic manner based on a life cycle
approach. This approach extends beyond merely disposing the waste, rather it aims to
increase recycling and recovery rate of waste and improve management of landfills to
CONCEPT

reduce the amount of waste and pollution.

IMPLEMENTATION

WASTE SOLUTIONS &

FACILITIES
Immediate opportunities - MSW
Waste volume: 41,368 tonne/day of waste generated by 2020.
Estimated Disposal Cost: RM 6.7 bn (Peninsular Malaysia only)

Household, Industrial, Commercial and Institutional Waste Generation

60,000
Waste generated (tonne/day) 5.19%
49,670
50,000 47,218
44,888
42,672
40,566
38,563
40,000

30,000

20,000

10,000

2015 2016 2017 2018 2019 2020

(total Peninsular & East Malaysia) Source: JPSPN, 2012 (SWM 2012)
Life Cycle & Material Flow Analysis (LCA/MFA)
Cost Avoidance Tonnage Diversion
Point of
Diversion

EARLY
Diversion $ COST AVOIDANCE
Point of
Diversion

MID-STREAM
Diversion RM $47 COST AVOIDANCE
87 Point of
Diversion

END-OF-PIPE
Diversion RM $47 COST AVOIDANCE
87

BAU RM $47 $49

87
Cost
Incurrence

Source of Collection Transfer Station Haulage Sanitary Landfill

Generation FEE TIPPING FEE FEE TIPPING FEE

WASTE SUPPLY CHAIN

Cost Avoidance Transportation Minimization

Cost
Avoidance

Source of Transfer Station Sanitary Landfill

Generation TIPPING FEE TIPPING FEE

GREATER
COST
AVOIDANCE

EARLY MID-STREAM END-OF-PIPE

Diversion Diversion Diversion

The earlier the diversion, the greater the cost avoidance, the greater potential to create market

Motivated by Profit Incentive, private sector has the flexibility & innovation to propose
a wider range of early intervention treatments in the waste stream.
MSW - Derivable Products (Market-Ready, High-Value Remanufactured Materials)

MSW Weight / Percentage Value of Value / ton Secondary

Primary Products
Components Ton MSW Recoverable Product Feedstock Products

Compost /
Organics 440.5 Biogas 440.5 * 0.5 = 220.25 RM 1.75 / m3 RM 26.98
Animal Feed
Plastic 130.2 130.2 * 0.5 = 65.10 RM 0.50 / kg RM 32.55 Green Diesel
Paper 80.5 Recycle 80.5 * 0.5 = 40.25 RM 0.25 / kg RM 10.07
Metal / Alu 20.7 20.7 * 0.5 = 10.35 RM 2.5 / kg RM 25.88
Diapers 120.1
Textile 30.1
Rubber 20.2 Refuse Derived
231.6 * 0.25 = 57.9 Rm 0.38 / kg RM 22.00
Fuel
Wood 10.4

Garden 50.8

Glass 30.3 Tipping Fees @

None None None None RM 49 / ton =
Others 66.20 RM 4.73

RM 117.48 RM 112.75
Total 1000 40.60 (% Diverted)
(Gross) (Net)

Source: MIGHT, JPSPN SWM Labs 2015 June

 MSW-Derivable Products
Market-Ready, High-Value Remanufactured Materials

MSW Key biochemicals

Composition High-Value Products

fuel &
Organics energy
BIOGAS (process product)
- Bottled Gas (household / industry
high purity biofertilizers animal feed
scale tanks)
wet market, - Inject to Pipeline (household /
F&B outlets, industry with GAS MALAYSIA)
hotels
- NGV Transportation Fuel
low purity Development of Green - Electricity
residential Industry
commercial
HORTICULTURE
Recyclable AGRICULTURE USE
- Fertilisers
- Animal feed & Aquaculture
Residual/mix - Biochar (high value for
hazardous household, landscaping, soil conditioner, fuel
diapers, source, deodorizer)
others Safe Treatment & Jobs, GNI,
Reduction of Waste Investment

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 Potential Product

Energy Animal feed Compost/BioFertilizer

Fuel
(solid/liquid/gas) Renewable chemical
 The Spill Over

Employment creation Development of Green

Industry

Safe Treatment and reduction of

Waste
 GoM in Industry Development role
Facilitating the to Facilitate
Mobilising Private
Private Sector SectorDevelopment
: Industry mobilisation
SOLUTION Transition of Malaysias SWM model from Developing Nation Model
(GoM CAPEX/OPEX) to Developed Nation Model (Industry Development, i.e.: Facilitation,
Regulation, Monitoring and Enforcement)

GREATER
Potential
Mobilization
Capacity
GoM
Traditional
INFRASTRUCTURE Mobilization
BUILDING Capacity
AGENCY

Current FUTURE
GOVERNMENT ROLE GOVERNMENT ROLE
= build & manage infrastructure = facilitation: private sector industry

Undeveloped, MALAYSIA in TRANSITION Developed

LOW INCOME Need Capacity Development HIGH INCOME

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 Current Situation
No Alignment between Government needs & Private Sector ability

Private Sector

Government
GoM doesnt have clear
method to evaluate
unsolicited
Private Sector has a lot of innovative
proposals
ideas to recover value from waste

Private Sector can generate higher diversion, but

needs profit to survive

GoM cant give specific

Private Sector needs feedstock guarantees for business
Volume / Quality
sustainability.
guarantees
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 Catchment Area Needs Statement (CANS)
Allows Alignment between Government needs & Private Sector ability

CANS

Private Sector

Government

GoM can give guarantee of Private Sector gets sufficient

collection from specific feedstock security for business
catchment areas. sustainability.

What is a Catchment Area Needs Statement (CANS); and why is it needed?

In order to attract sustainable businesses to take up tonnage diversion targets, Private Sector needs consistency in feedstock
(volume / quality) for business viability. GoM cant give feedstock (volume / quality) guarantees, but can direct Concessionaires
collections from a set Catchment Area to a specific facility.

The CANS information allows effective matchmaking between GoM catchment area SWM service disposal needs; leveraging
the innovative efficiencies of waste management ideas & solutions that the Private Sector can come up with.
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 Catchment Area Needs Statement (CANS)
Alignment between Government needs & Private Sector ability

CANS

Private Sector

Government

What Government Gets What Private Sector Gets

Targeted proposals that have a clear ToR for
evaluation
Reduction in Cost to Federal Budget (proposals
received within cost benchmarks)
Minimum Viable Info from CANS allows
business to work out whether it can
deliver a viable & sustainable business
model; at or below the Life-Cycle Cost
benchmark to Government.

Private Sector mobilisation in specific

Catchment Area SWM service (supporting
industry creation & tonnage diversion)

Sustainable, First-World waste management

(eco-friendly performance, circular economy)
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Thank You