Waste Management Regulations Malaysia: Act 672, Penalties & Business Compliance (2026 Update)

Two laws decide how your business handles waste in Malaysia. Act 672 covers the everyday rubbish from your shops, offices and factories in eight states and federal territories. In the other states, including Selangor today, your council or state government sets the rules instead. The Environmental Quality Act covers hazardous waste, where fines reach RM10 million. For everyday waste, you face compounds, which are fines you pay to settle without going to court. Illegal dumping fines reach RM500,000, and you are liable for what your collector does.

SWCorp, the federal agency that enforces Act 672, had shut 3,634 illegal dumpsites in those states by October 2025. In Johor, more than RM1.3 million in fines were issued across 2024 and 2025. Between 2020 and August 2025, SWCorp inspected 5,943 commercial, industrial and institutional premises. It issued 997 compliance notices and two compounds. Most businesses that fall foul of the rules never meant to. They used a collector who cut corners, and the liability landed on them.

This guide covers what the law asks of you, who regulates what, and how to comply. For the quick operational version, our Act 672 compliance guide is the checklist companion to this page.

Key takeaways

• Two laws, two regulators. Act 672 (enforced by SWCorp) covers your everyday solid waste in the states that have adopted it; the Environmental Quality Act (enforced by the Department of Environment, or DOE) covers scheduled waste, the legal name for hazardous waste. Most businesses in an Act 672 state deal only with Act 672.
• Fines now reach RM10 million — but only for scheduled waste. The 2024 EQA amendment raised environmental penalties sharply and added minimum fines, and the Act holds directors personally liable. For ordinary commercial waste the realistic exposure is RM500,000 for illegal dumping and Act 672 compounds.
• Your regulator depends on your state. Eight states and territories have adopted Act 672; the rest run on local council or state rules. Multi-site operators should apply the stricter standard everywhere.
• You are liable for your collector, and documentation is your protection. Using an unlicensed collector puts the risk of improper disposal on your business. Licensed collectors, separation at source, and proof of disposal are what the law asks now.

Look up your regulator, the approval to ask for and the top penalty

Find the row that matches your site and your waste.

Whichever row applies, keep a record of every collection. Here is what a record lets you show. In June 2026, a retail mall client's quarterly report counted 41 of 43 scheduled pickups arriving on the day promised: 95.3% on time. It is published with the client's permission on our total waste management page, where one contract covers collection, recycling and records for every site.

One penalty sits outside the table because it applies in every state. Illegal dumping on land carries a fine of RM50,000 to RM500,000, or up to five years in jail, or both, plus up to RM1,000 for each day it continues. That is section 24 of the Environmental Quality Act, as amended in 2024 by Act A1712.

Malaysia generates 39,000 tonnes of waste a day

Before the rules, the reason for them. Here is the scale of the problem the regulations are trying to fix.

Only 22 of Malaysia's roughly 135 landfills are sanitary, and most of what your business throws away still ends up in a landfill. A sanitary landfill is lined, and captures the polluted liquid and gas from the waste. That is the pressure behind tighter rules and bigger fines: the country is running out of safe places to bury rubbish, so the government is leaning on businesses to waste less and document more.

Two laws set the rules for your waste, and a third applies where Act 672 does not

Two pieces of legislation matter to most businesses, and a third matters in the states that have not adopted Act 672.

The Solid Waste and Public Cleansing Management Act 2007 (Act 672) is the main one. It governs your everyday solid waste — who is licensed to collect it, how it must be separated, and what happens when it is handled badly. It sets the licensing rules for collectors and the penalties for ignoring them.

The Environmental Quality Act 1974 (EQA) covers pollution and hazardous, "scheduled" waste — chemicals, clinical waste, used oil, and the like. This is the law that carries the headline RM10 million fines after its 2024 amendment.

The Local Government Act 1976 gives local councils their authority to manage municipal waste, enforce cleanliness, and issue the permits that matter in states which have not yet adopted Act 672.

You do not need to memorise the statute numbers — only which one applies to the waste you actually produce, which the next two sections sort out.

The 2024 penalty increases are now in force

The Environmental Quality (Amendment) Act 2024 (Act A1712) took effect and remains the law today. It raised the ceiling on environmental fines sharply, and those higher penalties are being enforced, not merely threatened.

Two things sit alongside the numbers, and both matter to how you run your business:

• Minimum fines now apply. Illegal dumping starts at RM50,000; hazardous-waste offences start at RM100,000 (section 34B). Courts have less room to hand down a token penalty.
• Directors can be held personally liable. Under section 43 of the EQA, which predates the 2024 amendment, a company director is deemed guilty of an environmental offence the company commits unless they can show it happened without their consent and that they took due care to prevent it. Compliance is no longer something you can fully delegate and forget.

For everyday solid waste, the relevant penalties sit under Act 672 and are smaller — but they are real. Causing or permitting your waste to be handled outside the Act, which is how using an unlicensed collector reaches you (s.71(1)), carries RM10,000 to RM100,000 (s.71(8)), and failing to separate waste at source can be fined up to RM1,000 (s.74). Our section-by-section breakdown of Act 672 covers the full penalty structure.

Which regulator covers which type of waste?

Two agencies regulate two kinds of waste. Mix them up and you waste effort or miss an obligation.

SWCorp handles your solid waste in the Act 672 states. The Solid Waste and Public Cleansing Management Corporation (SWCorp), under the Ministry of Housing and Local Government (KPKT), enforces Act 672. Solid waste is your ordinary rubbish — office and shop waste, food waste, packaging, general commercial and construction waste. For the vast majority of businesses in those states, this is the only regulator that matters day to day; in Selangor and the other states outside the Act, that role sits with your local council or state government. Our SWCorp guide explains who they are and how their licensing and enforcement work.

The DOE handles hazardous waste. The Department of Environment (DOE) enforces the Environmental Quality Act, and its remit is scheduled (hazardous) waste — chemicals, solvents, clinical waste, e-waste with hazardous components, used oil. If your business does not generate these, the DOE's scheduled-waste rules largely do not apply to you.

The practical takeaway: if you run a shop, office, restaurant, warehouse, or most factories, your waste is solid waste and your regulator is SWCorp in an Act 672 state, or your local council or state government elsewhere. You only bring the DOE in if you also produce hazardous material — and then that waste must be handled separately by a DOE-licensed operator, never mixed into your general bins.

Your compliance depends on which state you operate in

Malaysia splits jurisdiction for solid waste, so your obligations change with your address.

States that have adopted Act 672 put you under SWCorp's federal regime, where collectors must hold a SWCorp licence:

• Peninsular states: Johor, Kedah, Melaka, Negeri Sembilan, Pahang, Perlis
• Federal Territories: Kuala Lumpur, Putrajaya

States that have not adopted Act 672 manage solid waste through local councils (PBT) or their state governments — Selangor, Penang, Perak, Terengganu, Kelantan, Sabah, and Sarawak. In Selangor, solid waste sits with the local councils and KDEB Waste Management today. On 29 July 2026 the Housing and Local Government Minister announced that the Cabinet had agreed to extend Act 672 to all twelve Selangor local authorities in phases; no start date or phase order has been published. In these states, check that your collector holds valid local council or state permits and that its disposal sites are licensed.

If you operate across several states, you are almost certainly straddling both regimes at once. The simplest way to manage that is to hold every site to the stricter Act 672 standard, everywhere. One consistent process is far easier to run than a different rulebook per outlet — a point we cover in our guide to waste management in Malaysia for multi-site operators.

Not sure which rules apply where? Talk to us and we'll help you work out the requirements at each of your locations.

What Act 672 requires from your business

Strip away the legal language and Act 672 asks three things of a waste generator, the business that produces the waste.

1. Use a licensed collector. Whoever collects, transports, or disposes of your waste must be licensed. If they are not, the liability for improper disposal falls on you, not just on them. Ask for the SWCorp licence number, verify it on the SWCorp i-License system, and re-check it every year — licences expire and get revoked. This is the single most common gap we see, and unlicensed collectors quietly pass their risk to you.

2. Separate your waste at source. Commercial, industrial, and institutional premises have been required to separate waste at source since 2020. In practice that means keeping recyclables (paper, plastic, metal, glass), food and organic waste, and general waste apart from the point they are thrown away. Separation at source is what makes recycling possible downstream — mixed waste mostly cannot be recovered.

3. Keep your records. Act 672 sets no records format, but inspectors, boards and buyers all expect you to show where your waste went. Keep a log of every collection: date, weight, waste type, collector, and disposal destination. If you cannot prove proper disposal, you may be treated as if it never happened.

How Malaysia groups the waste your business produces

Different waste types carry different rules. Most business waste falls into three groups.

Municipal solid waste is the everyday stream — office and shop waste, food waste, packaging, and other non-hazardous commercial rubbish. This is what Act 672 and SWCorp govern in the states that have adopted the Act, and what local councils or state governments govern elsewhere.

Scheduled (hazardous) waste includes chemicals, clinical waste, e-waste with hazardous components, used oil, and solvents. It is regulated by the DOE under the EQA and must be handled by a separately licensed operator. It should never go into your general bins.

Construction and demolition waste — concrete, rubble, wood, and metal offcuts, renovation debris — has its own handling and recovery expectations, and much of it (steel, concrete, wood) can be recycled rather than dumped. For projects that generate it on a large scale, a documented RORO bin rental keeps the site compliant.

The rule of thumb: separate hazardous waste from everything else, keep recyclables out of the general stream, and send each stream to a licensed facility.

What getting waste disposal wrong actually costs you

The penalties above are the legal ceiling. The everyday cost of non-compliance is usually more mundane, and it adds up.

• Compounds and fines. Under Act 672, causing or permitting controlled solid waste to be collected or disposed of outside the Act carries RM10,000 to RM100,000 (s.71(8)); a compound, where offered, is capped at half that maximum (s.94(1)). Failing to separate waste up to RM1,000. Under the EQA, illegal dumping and hazardous-waste breaches run into the hundreds of thousands and beyond.
• Cleanup costs charged back to you. If waste is dumped illegally, the cleanup bill and any environmental remediation can be recovered from the offender.
• Personal liability for directors. As above, the EQA reaches individual directors, not just the company.
• Lost tenders and contracts. Large buyers increasingly ask suppliers to prove compliant, documented waste disposal. No records can mean no contract.

Most of this risk comes not from your own operations but from your collector's — when you cannot prove where your waste went, you inherit whatever they did with it.

How to keep your business on the right side of the law

None of this requires a compliance department. It requires a few habits, applied consistently at every site.

1. Run a waste audit first. You cannot manage what you have not measured. A simple audit of what each site throws away, and where it currently goes, shows you your real exposure. GarGeon does this as a free setup step.
2. Use licensed collectors, and verify them. Keep every collector's SWCorp licence (or local council permit) on file, and re-verify annually.
3. Separate at source, everywhere. Set up clearly labelled bins for recyclables, food waste, and general waste at every site, and default to the strictest standard across all of them.
4. Document every collection. Keep date, weight, waste type, collector, and destination for every pickup. This is the evidence that protects you.
5. Verify that recyclables are actually recycled. A collector that promises recycling and quietly landfills everything leaves you exposed. Photo and weight proof of where each pickup goes is what makes the claim real — the principle behind recycling verification.

For a site-by-site version you can work through with your operations team, use our 2026 waste compliance checklist.

What's on the regulatory horizon

The direction of travel is clear even where the detail is not: more separation, more documentation, less to landfill. A few developments are worth watching, without over-reacting to any of them.

• Sustainability reporting for listed companies. Bursa Malaysia's reporting framework is being phased in for listed companies, and waste data is part of it. Even if you are not listed, larger customers may ask you for waste figures to support their own reporting.
• A carbon tax that is on hold. Malaysia's carbon tax was due to start in 2026 with the iron, steel and energy sectors. In April 2026 the government put it on hold. No rate or new start date has been confirmed, and waste was not in its scope. It is worth knowing about; it is not something to restructure your operations around today.
• A gradual shift towards a circular economy. Policy continues to nudge businesses towards recovering materials rather than dumping them. Building good separation and recycling habits now simply gets you there early.

The fundamentals — licensed collectors, separation at source, documented disposal — are what the law asks of you now, and what every likely future rule will build on.

What compliance looks like in different industries

The rules are the same; the pressure points differ by sector.

• Manufacturing often generates both solid and scheduled waste, so the discipline is keeping the two strictly apart, using a separate licensed handler for anything hazardous, and recovering industrial recyclables.
• Food and beverage produces heavy organic waste. Separating food waste at source, documenting grease-trap cleaning, and cutting what goes to landfill are the priorities.
• Healthcare must keep clinical waste on a licensed, separate track from general waste, with a full documentation chain — this is scheduled waste, not solid waste.
• Construction generates high volumes of recoverable material. Separating concrete, steel, and wood for recovery, and documenting licensed disposal of anything hazardous, keeps a site compliant.

Across all of them, the move is the same: separate at source, use licensed collectors, and keep proof.

How GarGeon keeps your waste compliant and documented

This is where GarGeon fits. We are a comprehensive waste management partner, not a waste collector with a truck. That means we take the whole problem off your hands — collection, recycling, and the records that prove it — across Kuala Lumpur, Selangor, and Johor.

Here is how that maps to the rules above:

• Licensed collection through a vetted partner network, so the "use a licensed collector" box is ticked at every site — without you managing a fleet.
• Separation at source, with recyclables recovered and a rebate share on material that has market value. General waste still goes to landfill — but compliantly, and fully documented.
• Proof for every pickup: each collection is logged with weight, timestamp, and photo, and traced to a licensed disposal facility. When SWCorp, a council, or your board asks where your waste went, the answer is a couple of clicks away in GarGeon Connect, our online portal.
• A free waste audit to start, mapping what each site produces and where it goes before anything changes.

We do not own trucks or recycling plants, and we do not pretend everything gets recycled. What we do is make sure every pickup is made by someone licensed, recyclables are actually recovered, and the whole chain is documented — so compliance stops being something you worry about.

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Ready to make waste compliance one less thing to manage?

Book a Consultation → and tell us your sites and current collectors. We'll show you where your compliance gaps are and how to close them.

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References

• SWCorp — solid waste licensing and enforcement under Act 672
• Department of Environment (DOE) — Environmental Quality Act and scheduled waste
• Solid Waste and Public Cleansing Management Act 2007 (Act 672)
• Environmental Quality (Amendment) Act 2024 (Act A1712)
• Bursa Malaysia — sustainability reporting requirements

Related GarGeon guides:

• Act 672 compliance quick reference
• The five challenges holding Malaysian waste management back
• Where Malaysia's landfills are and what they charge

Last updated: October 2026. Regulations change — verify current requirements with SWCorp, the DOE, or your local council.