Act 672 Malaysia: Quick Compliance Reference for Business Operations
Act 672 governs solid waste management for businesses in 8 Malaysian states. Quick reference: licensing checks, separation requirements, penalties, and compliance checklist.
GarGeon Team
April 5, 2026
10 min read
The Solid Waste and Public Cleansing Management Act 2007 — commonly called Act 672 — is the primary law governing how solid waste is managed in Malaysia. If your business generates waste in Peninsular Malaysia, this Act determines who can collect it, how it must be separated, and what happens if you get it wrong.
This is a quick reference guide. For a full regulatory overview including EQA 2024 and scheduled waste, see our complete regulations guide.
Does Act 672 Apply to Your Business?
States Under Act 672
Act 672 applies in these states and federal territories:
| State / Territory | Status |
|---|---|
| Johor | Adopted |
| Kedah | Adopted |
| Melaka | Adopted |
| Negeri Sembilan | Adopted |
| Pahang | Adopted |
| Perlis | Adopted |
| Kuala Lumpur (FT) | Adopted |
| Putrajaya (FT) | Adopted |
States NOT Under Act 672
| State | Waste Management Authority |
|---|---|
| Selangor | Local authorities (MBPJ, MBSA, MPKj, etc.) — Letter of Intent to adopt |
| Penang | Local authorities |
| Perak | Local authorities |
| Sabah | State government |
| Sarawak | State government |
| Terengganu | Local authorities |
| Kelantan | Local authorities |
What this means for multi-state businesses: If you operate across both adopted and non-adopted states, Act 672 requirements apply at your sites in adopted states. Sites in non-adopted states follow local authority rules, which may differ. You need to know which rules apply at each location.
The Three Things Act 672 Requires from Businesses
1. Use Licensed Waste Collectors Only
Section 71: No person shall deposit, separate, store, collect, transfer, transport, treat, or dispose of controlled solid waste except in accordance with Act 672.
What this means:
- Your waste collector must hold a licence from the Director General of the National Solid Waste Management Department
- This applies to anyone who collects, transports, or disposes of your waste
- Using an unlicensed collector makes YOU liable — not just the collector
How to verify:
- Ask your collector for their SWCorp licence number
- Verify at swcorp.gov.my using the i-License system
- Keep a copy of the licence on file
- Re-verify annually — licences can expire or be revoked
Penalty for using unlicensed operators: Compound up to RM5,000 per offence.
2. Separate Your Waste at Source
Section 74: The Director General may direct any person to separate solid waste into designated categories.
What this means:
- Mandatory source separation applies to all sectors — residential, commercial, industrial, and institutional
- For commercial, industrial, and institutional (CII) premises, mandatory separation took effect in 2020
- You must separate recyclables from general waste
- Food waste must be separated from other streams
Minimum separation categories:
- Recyclables (paper, plastic, metal, glass)
- Food / organic waste
- General waste (residual, non-recyclable)
Penalty for non-compliance: Fine up to RM1,000 per offence under Section 74(2).
3. Keep Disposal Records
While Act 672 does not explicitly mandate detailed record-keeping for waste generators, several provisions create an implicit documentation requirement:
- Licensed collectors must maintain records of waste collected, which your contract should make available to you
- NSRF requires listed companies to report waste data with evidence
- EQA 2024 enforcement means you may need to prove your waste was disposed of legally
- SWCorp inspections can request evidence of proper disposal
Best practice: Maintain records of every waste collection including date, weight, waste type, collector name, and disposal destination.
Penalty Structure
Act 672 Penalties
| Offence | Penalty | Section |
|---|---|---|
| Unlicensed waste collection/disposal | Compound up to RM5,000 per offence | Section 71 |
| Failure to separate waste | Fine up to RM1,000 | Section 74(2) |
| Depositing waste in unauthorized locations | Fine up to RM10,000 or imprisonment up to 6 months or both | Section 71 |
| Obstructing enforcement officers | Fine up to RM10,000 or imprisonment up to 1 year | Various |
EQA 2024 Penalties (Environmental Offences)
These apply in addition to Act 672 for environmental violations:
| Offence | Maximum Fine | Imprisonment |
|---|---|---|
| Illegal dumping | RM500,000 | Up to 1 year |
| Industrial pollution | RM1,000,000 | Up to 2 years |
| Hazardous waste offences | RM10,000,000 | Up to 5 years |
Minimum fines are now enforced: RM50,000 for illegal dumping, RM200,000 for hazardous waste.
Director liability: Under EQA 2024, company directors can be held personally liable for environmental offences committed by the company.
Related: Waste Compliance Checklist 2026
Compliance Checklist for Operations Managers
Use this checklist to verify your operations comply with Act 672. Review quarterly.
Waste Collector Compliance
- All waste collectors hold valid SWCorp licences
- Licence numbers recorded and verified via i-License system
- Licences re-verified within the last 12 months
- Written contract in place with each collector
- Contract specifies disposal at licensed facilities
Source Separation
- Separate bins for recyclables, food waste, and general waste at all sites
- Bins clearly labelled (bilingual — Bahasa Malaysia and English)
- Staff trained on separation requirements
- Separation compliance monitored (contamination checks)
- Sites in Act 672 states follow Act 672 requirements
- Sites in non-Act 672 states follow local authority requirements
Documentation
- Collection records maintained (date, weight, type, collector, destination)
- Disposal destination records available for every load
- Records retained for minimum 3 years (for audit and inspection purposes)
- ESG reporting data derivable from records (if listed company or supplier to listed company)
Site Operations
- Waste storage area meets hygiene standards
- No waste accumulation beyond scheduled collection
- Bin placement does not obstruct public areas (permits obtained if on public land)
- Hazardous/scheduled waste handled separately by DOE-licensed operators (NOT mixed with solid waste)
SWCorp: Who They Are and What They Do
SWCorp (Perbadanan Pengurusan Sisa Pepejal dan Pembersihan Awam / Solid Waste and Public Cleansing Management Corporation) is the federal agency responsible for enforcing Act 672.
Key functions:
- Licensing waste management operators
- Enforcing source separation compliance
- Inspecting commercial and industrial premises
- Shutting down illegal dumpsites (3,634 closed as of October 2025)
- Operating the i-License verification system
Enforcement trends:
- Enforcement is intensifying year over year
- 3,634 illegal dumpsites shut down (highest on record)
- Over RM1.3 million in fines issued in Johor alone (2024-25)
- CII premises inspections increasing — 5,943 inspected between 2020 and mid-2025
What triggers an inspection:
- Complaints from neighbours or the public
- Visible waste issues (overflowing bins, illegal dumping)
- Routine compliance checks in commercial areas
- Follow-up from previous compliance notices
Multi-State Operations: Which Rules Apply Where
For businesses operating across multiple states, waste management compliance is not uniform.
The Compliance Matrix
| Location | Primary Authority | Separation Mandate | Licensing Requirement |
|---|---|---|---|
| Act 672 states (Johor, KL, etc.) | SWCorp | Mandatory (2020 for CII) | SWCorp licence required |
| Selangor | Local authorities (MBPJ, MBSA, etc.) | Varies by council | Local authority approval |
| Penang | Local authorities (MBPP, MPSP) | Local rules apply | Local authority approval |
| Sabah & Sarawak | State government | State regulations | State-specific |
Practical Guidance
- Default to the stricter standard. If Act 672 requires separation and your Selangor site's local council does not enforce it yet, separate anyway. The regulatory direction is toward mandatory separation everywhere.
- Standardize your process. Implement Act 672-level compliance at all sites regardless of which state they are in. It is simpler to have one standard than to manage different processes per location.
- Document everything. Regardless of which authority has jurisdiction, documented waste management protects you. Records prove compliance no matter who inspects.
Frequently Asked Questions
What is Act 672 in simple terms?
Act 672 is Malaysia's federal law governing solid waste management. It requires businesses to use licensed waste collectors, separate waste at source, and dispose of waste at licensed facilities. It applies in 8 states and federal territories (Johor, Kedah, Melaka, Negeri Sembilan, Pahang, Perlis, KL, and Putrajaya). Penalties range from RM1,000 for failing to separate waste to RM5,000 for using unlicensed collectors.
How do I check if my waste collector is licensed?
Visit the SWCorp website at swcorp.gov.my and use the i-License system. Enter the collector's company name or licence number. You can also call SWCorp directly. If your collector cannot provide a valid licence number, do not use them — you are liable for using unlicensed operators.
Does Act 672 apply in Selangor?
Not yet. Selangor has sent a Letter of Intent to adopt Act 672 but has not formally adopted it. Waste management in Selangor is currently governed by local authorities (MBPJ, MBSA, MPKj, etc.). However, waste separation and proper disposal are still required under local bylaws. If you operate in both Selangor and an Act 672 state, apply Act 672 standards everywhere for simplicity.
What waste does Act 672 NOT cover?
Act 672 covers controlled solid waste — the everyday waste from homes, offices, shops, factories, and construction sites. It does NOT cover:
- Scheduled waste (hazardous) — governed by DOE under the Environmental Quality Act
- Clinical waste — separate regulations under the Environmental Quality (Scheduled Wastes) Regulations
- Radioactive waste — governed by the Atomic Energy Licensing Board
- Sewage — governed by Indah Water Konsortium and state water authorities
If your business generates scheduled waste (chemicals, solvents, e-waste, etc.), you need a separate DOE-licensed handler in addition to your solid waste collector.
What should I do if I receive a SWCorp compliance notice?
Respond promptly. A compliance notice is a warning — not yet a compound or fine. You typically have 14-30 days to rectify the issue. Common remediation steps: obtain or verify collector licences, set up proper separation bins, clean up any waste accumulation, and document the corrective actions taken. Keep a copy of the notice and your response. If you receive a compound notice (fine), you can pay or appeal within the specified period.
The Bottom Line
Act 672 compliance is straightforward: use licensed collectors, separate your waste, and keep records. The law is not complex. The challenge is operational — making sure every site, every collection, and every disposal meets the standard consistently.
The penalties are getting bigger. Enforcement is getting more frequent. And with NSRF requiring waste data from listed companies, the demand for documented, compliant waste management will only increase.
Need Compliant Waste Collection?
GarGeon is SWCorp-licensed and operates across KL, Selangor, and Johor. Every collection is documented with weight, waste type, and disposal destination. Compliant by default.
References
Legislation:
- Solid Waste and Public Cleansing Management Act 2007 (Act 672) — Federal Gazette
- Environmental Quality (Amendment) Act 2024 — Penalty structure
- SWCorp Official Portal — Licensing and enforcement
Related Reading:
Need compliant waste collection?
GarGeon is SWCorp-licensed and operates across KL, Selangor & Johor. Every collection documented.
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