To comply with Act 672, do two things at every site where the Act applies. Use a collector that holds a SWCorp licence, and ask the collector for its licence number. SWCorp is the federal agency that enforces Act 672. Keep recyclables, food waste and general waste in separate bins. Then keep a record of every collection, with its date, weight, waste type, collector and destination, so you can prove you complied.
Act 672 is the Solid Waste and Public Cleansing Management Act 2007, Malaysia's solid waste law. It applies in Kuala Lumpur, Putrajaya, Johor, Kedah, Melaka, Negeri Sembilan, Pahang and Perlis.
GarGeon coordinates collection through licensed collectors in Act 672 states. This reference covers what we see businesses get right and wrong. Our complete regulations guide gives the full picture, including hazardous waste rules. It also covers the new 2024 penalties under the Environmental Quality Act (EQA).
Check Which Rules Cover Each Site, Then Run These Five Checks
Act 672 does not cover every state. Start with where each site is.
| Where your site is | Who runs solid waste | Approval to check on your collector |
|---|---|---|
| Johor, Kedah, Melaka, Negeri Sembilan, Pahang, Perlis, Kuala Lumpur, Putrajaya | SWCorp, under Act 672 | SWCorp licence, verified on i-License |
| Selangor | Local councils and KDEB Waste Management. An extension of Act 672 was announced on 29 July 2026, with no start date or phase order published | Local authority approval |
| Penang, Perak, Terengganu, Kelantan | Local authorities | Local authority approval |
| Sabah, Sarawak | State government | State-specific approval |
Then run these five checks. Each one links to the detail further down.
The full checklist adds contracts, bin labels, storage and scheduled waste. Scheduled waste is the legal name for hazardous waste, regulated by the Department of Environment (DOE).
Westlite Dormitory runs under both sets of rules. Its five locations are in Johor, an Act 672 state, and Selangor, which is not. GarGeon manages all five on one system, with 95% on-time collection and a digital record of every pickup. That is what total waste management means in practice: one contract, with every site's licence checks and pickup records in one place.
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.) and KDEB Waste Management — phased extension of Act 672 announced on 29 July 2026; no start date or phase order published |
| 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 under Act 672. The Director General of the National Solid Waste Management Department grants it after a recommendation from SWCorp (sections 16 to 19), and it is commonly called a SWCorp licence
- 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. The operator itself faces a fine of RM50,000 to RM100,000, imprisonment up to five years, or both — plus RM5,000 for every day the offence continues (s.14(3)). Your own exposure is s.71(1): you may not cause or permit waste to be handled outside the Act. Penalty (s.71(8)): RM10,000 to RM100,000, six months to five years, or both. Where an offence is compounded rather than prosecuted, s.94(1) caps the compound at half the maximum fine.
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
Act 672 sets no record-keeping rule for the businesses that produce waste, but you still need records:
- Licensed collectors must maintain records of waste collected, which your contract should make available to you
- NSRF, the National Sustainability Reporting Framework, makes sustainability reporting mandatory for listed companies, and a listed customer may ask you for waste figures
- 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 |
|---|---|---|
| Operating without a licence | Fine RM50,000–RM100,000, or up to 5 years, or both (+RM5,000/day continuing) | Section 14(3) |
| Collecting, transporting or disposing of controlled solid waste outside the Act — including causing or permitting it | Fine RM10,000–RM100,000, or 6 months to 5 years, or both | Section 71(1), 71(8) |
| Failure to separate waste | Fine up to RM1,000 | Section 74(2) |
| Allowing controlled solid waste to escape your possession | Fine RM10,000–RM100,000, or up to 5 years, or both | Section 72(3) |
| Obstructing enforcement officers | Fine up to RM10,000, or up to 6 months, or both (+RM1,000/day continuing) | Section 93 |
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 5 years |
| Air pollution | RM1,000,000 | Up to 5 years |
| Hazardous waste offences | RM10,000,000 | Up to 5 years |
Minimum fines are now enforced: RM50,000 for illegal dumping, RM100,000 for hazardous (scheduled) waste under section 34B (Act A1712, section 22).
Director liability: Under section 43 of the Environmental Quality Act 1974, 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
Source Separation
Documentation
Site Operations
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 in the Act 672 states by October 2025)
- Operating the i-License verification system
Enforcement trends:
- Enforcement is intensifying year over year
- 3,634 illegal dumpsites shut in the Act 672 states by October 2025
- In Johor, more than 3,400 compounds and RM1.3 million in fines issued across 2024 and 2025
- Between 2020 and August 2025 SWCorp inspected 5,943 commercial, industrial and institutional premises and issued 997 compliance notices and two compounds
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.) — Act 672 extension announced 29 July 2026, no start date or phase order published | 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 towards mandatory separation everywhere.
- Standardise 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.
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.
If you run more than one site, the practical route to consistent compliance is a single total waste management company that works through licensed collectors and keeps their licence checks, the schedules and the disposal records for every location in one place, rather than reconciling separate contractors site by site.
Need Compliant Waste Collection?
GarGeon works through licensed collectors across KL, Selangor, and Johor. Every collection is documented with weight, waste type, and disposal destination. Compliant by default.
Book a Consultation → | How to verify a waste licence →
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:
