Managing solid waste responsibly is critical for businesses in Malaysia, not only to comply with regulatory requirements but also to contribute to environmental sustainability. With the Environmental Quality (Amendment) Act 2024 introducing penalties up to RM10 million, understanding your compliance obligations has never been more important.

This comprehensive guide covers the key regulations, compliance requirements, and best practices for solid waste management in Malaysia.

Malaysia's Solid Waste Crisis: The Numbers

Before diving into regulations, here's why solid waste management matters:

Metric	Figure	Source
Daily waste generation	39,000 tonnes	SWCorp 2024
Landfill disposal rate	82.5%	Ministry of Environment
Sanitary landfills	21 of 137 (15%)	JPSPN
Illegal dumpsites closed (2023)	2,093	SWCorp
Enforcement fines (Johor 2024-25)	RM1.3 million+	SWCorp Johor

With only 15% of Malaysia's landfills meeting sanitary standards and enforcement intensifying, businesses face increasing pressure to ensure proper solid waste management compliance.

Overview of Malaysia's Waste Management Framework

Malaysia's solid waste management is governed by a comprehensive legal framework designed to ensure proper waste handling, minimize environmental impact, and promote sustainable practices. The regulatory landscape involves federal and state jurisdictions, with various agencies overseeing different aspects of solid waste management.

Key Legislation and Regulations

Solid Waste and Public Cleansing Management Act 2007 (Act 672)

The cornerstone of Malaysia's waste management regulations, this act provides for:

Licensing requirements for waste management operators
Standards for waste collection and disposal
Penalties for non-compliance
Powers of enforcement authorities

Environmental Quality Act 1974 (Act 127)

Regulates scheduled waste and environmental protection:

Controls pollution and environmental quality
Manages hazardous and scheduled waste
Requires environmental impact assessments

Local Government Act 1976 (Act 171)

Empowers local authorities to:

Manage municipal solid waste
Enforce cleanliness and sanitation standards
Issue licenses and permits

2024 Regulatory Changes: What Businesses Must Know

The Environmental Quality (Amendment) Act 2024, which took effect on July 7, 2024, represents the most significant update to Malaysia's environmental regulations in decades. Here's what changed:

Dramatically Increased Penalties

The amendment introduced a 20x increase in maximum penalties for environmental violations:

Violation Type	Previous Maximum	New Maximum (2024)
Illegal Dumping	RM100,000	RM500,000
Industrial Pollution	RM500,000	RM1,000,000
Hazardous/Scheduled Waste	RM500,000	RM10,000,000
Water Contamination	RM500,000	RM10,000,000

Enhanced Enforcement Powers

The Department of Environment (DOE) now has expanded authority to:

Conduct unannounced inspections of business premises
Issue immediate stop-work orders for violations
Seize equipment used in illegal disposal
Hold company directors personally liable

EQMS Digital Transition

The DOE is transitioning to a new Environmental Quality Management System (EQMS), requiring businesses to submit environmental reports digitally. This includes waste disposal documentation and scheduled waste manifests.

Action Required: Businesses must ensure their waste documentation systems can generate compliant reports for EQMS submission.

Regulatory Bodies and Their Roles

Department of Environment (DOE)

Oversees environmental compliance
Issues Environmental Impact Assessment (EIA) approvals
Manages scheduled waste regulations
Monitors pollution control

National Solid Waste Management Department (JPSPN)

Implements national waste management policies
Issues licenses for waste management facilities
Monitors waste management services
Develops waste management strategies

Local Authorities

Manage day-to-day waste collection
Issue business waste disposal permits
Enforce local by-laws
Conduct inspections

Understanding Your Jurisdiction: Act 672 vs Local Council

Malaysia has a split jurisdiction for solid waste management. Your compliance requirements depend on which regulatory regime applies to your business location:

Act 672 States (SWCorp Jurisdiction)

Federal solid waste management under SWCorp applies to:

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

In these states, commercial waste collectors must hold SWCorp registration. Verify your contractor at www.swcorp.gov.my.

Non-Act 672 States (Local Council Jurisdiction)

Local councils (PBT) manage solid waste in:

Currently negotiating Act 672 adoption: Selangor, Penang
State-managed: Perak, Kelantan, Terengganu
Separate state laws: Sabah, Sarawak

In these states, verify your contractor holds valid local council permits and check their disposal facilities are licensed.

Tip: Not sure which regime applies? Contact us and we'll help identify your compliance requirements.

Business Compliance Requirements

Waste Generator Responsibilities

All businesses must:

Properly segregate waste at source
Store waste in appropriate containers
Engage licensed waste collectors
Maintain waste disposal records
Report scheduled waste generation (if applicable)

Documentation and Record Keeping

Required documents include:

Waste disposal contracts
Collection schedules and receipts
Waste generation logs
Scheduled waste inventories
Disposal certificates

Permits and Licenses

Businesses may need:

Business premise license (mentioning waste management)
Scheduled waste generator license (for hazardous waste)
Special permits for specific waste types
Environmental compliance certificates

Waste Classification and Management

Categories of Waste

Municipal Solid Waste

General office waste
Food waste
Packaging materials
Non-hazardous commercial waste

Scheduled Waste

Chemical waste
Clinical waste
E-waste containing hazardous components
Used oil and solvents

Construction and Demolition Waste

Concrete and rubble
Wood and metal scraps
Renovation debris

Proper Handling Procedures

Each waste category requires specific handling:

Segregation at source
Appropriate containment
Proper labeling
Safe storage
Licensed disposal

Penalties for Non-Compliance

Following the 2024 amendments, penalties for solid waste management violations have increased dramatically. Using unlicensed waste collectors exposes your business to these risks:

Updated Penalty Structure (2024)

Offence	Minimum Fine	Maximum Fine	Prison Term
Illegal Dumping	RM50,000	RM500,000	Up to 1 year
Industrial Pollution	RM100,000	RM1,000,000	Up to 2 years
Hazardous Waste Violations	RM200,000	RM10,000,000	Up to 5 years
Water Contamination	RM250,000	RM10,000,000	Up to 5 years
Unlicensed Waste Collection (Act 672)	RM10,000	RM100,000	6 months - 5 years

Additional Financial Exposure

Daily penalties for continued violations (compounding fines)
Full cleanup cost recovery charged to the offender
Third-party damage claims and civil liability

Legal and Business Consequences

Prosecution under Environmental Quality Act and Act 672
Business license suspension or permanent revocation
Criminal charges with potential imprisonment for severe violations
Directors' personal liability — executives can be held individually responsible
Supply chain exclusion — MNCs increasingly require compliance documentation from suppliers

Best Practices for Compliance

Implement a Waste Management System

Conduct waste audits
Develop standard operating procedures
Train employees regularly
Monitor and measure performance
Continuously improve processes

Engage Licensed Service Providers

Choosing the right waste management company is critical. Ensure your provider:

Holds valid SWCorp registration or local council permits
Provides comprehensive insurance coverage
Offers transparent service agreements with clear documentation
Delivers consistent service quality with verifiable disposal records
Maintains proper documentation trails for audit purposes

Stay Updated on Regulations

Subscribe to regulatory updates
Join industry associations
Attend compliance workshops
Consult with experts
Review requirements regularly

Future Regulatory Trends: What's Coming

Extended Producer Responsibility (EPR) — Expected 2026

Malaysia's EPR framework is expected to launch in 2026, making producers financially responsible for end-of-life product management:

Packaging waste: Producers must fund collection and recycling programs
Electronics and e-waste: Take-back requirements for electrical equipment
Recycling targets: Mandatory recovery rates for specific product categories
Financial contributions: PRO (Producer Responsibility Organization) fees

Businesses should prepare by tracking product packaging volumes and establishing relationships with recycling partners.

Carbon Tax — Starting 2026

Confirmed in Budget 2025, Malaysia's carbon tax will initially target:

Iron and steel manufacturing
Energy sector operations
(Expansion to cement, aluminum, fertilizer under consideration)

Waste connection: Scope 3 emissions calculations include waste disposal. Businesses sending waste to landfills will face higher carbon costs than those diverting to recycling or waste-to-energy facilities.

ESG Reporting Mandates — 2025-2027 Rollout

The National Sustainability Reporting Framework (NSRF) requires waste data disclosure:

Timeline	Affected Companies
January 2025	Main Market companies (market cap > RM2 billion)
January 2026	Remaining Main Market companies
January 2027	ACE Market + large non-listed companies (revenue > RM2 billion)

Even if your company isn't directly covered, clients subject to Scope 3 reporting will require waste documentation from suppliers. Learn more about ESG requirements for Malaysian businesses.

Circular Economy Blueprint 2025-2035

The government's circular economy roadmap includes:

Zero-waste manufacturing targets
Mandatory waste diversion rates by industry
Green public procurement requirements
Waste-to-energy facility expansion

Industry-Specific Solid Waste Management Requirements

Different industries face unique solid waste management challenges and compliance requirements:

Manufacturing Sector

Scheduled waste management plans with DOE-approved storage facilities
Industrial effluent treatment and monitoring
Emission controls meeting DOE standards
Resource recovery and recycling programs for industrial by-products

Food and Beverage Industry

Mandatory organic waste separation at source
Grease trap management and regular cleaning documentation
Food waste reduction targets aligned with national goals
Composting initiatives and waste diversion strategies

Healthcare Facilities

Clinical waste segregation using color-coded systems
Licensed clinical waste contractors (separate from general waste)
Specialized incineration or autoclaving disposal methods
Infection control protocols with full documentation chain

Construction Industry

Construction and demolition waste segregation requirements
Recyclable material recovery (concrete, steel, wood)
Licensed disposal for hazardous materials (asbestos, chemicals)
Site waste management plans for projects over certain thresholds

Conclusion: Stay Ahead of Malaysia's Evolving Solid Waste Regulations

With penalties now reaching RM10 million under the Environmental Quality (Amendment) Act 2024 and enforcement intensifying across Malaysia, solid waste management compliance is no longer optional — it's essential for business survival.

Key takeaways for Malaysian businesses:

Know your jurisdiction — Act 672 states vs local council areas have different licensing requirements
Verify your contractors — Using unlicensed waste collectors makes YOU liable for illegal disposal
Prepare for ESG reporting — Even non-listed companies will need waste data for Scope 3 compliance
Document everything — Digital waste management systems provide audit-ready records
Plan for EPR and carbon tax — Both launching in 2026, both affecting waste disposal costs

The regulatory landscape for solid waste management in Malaysia will continue evolving. Businesses that build compliant systems now will avoid scrambling when deadlines hit — and gain competitive advantage in tenders requiring ESG credentials.

Ready to ensure your business meets Malaysia's solid waste management regulations?

GarGeon helps Malaysian businesses achieve compliance with:

✅ Pre-verified licensed waste contractors
✅ Automatic documentation and landfill tickets
✅ ESG-ready waste reporting for Bursa compliance
✅ Digital waste management across multiple locations

Get a Free Compliance Assessment →

References

Department of Environment Malaysia (DOE) — Environmental Quality Act enforcement
SWCorp — Solid waste management licensing and enforcement
Securities Commission Malaysia — National Sustainability Reporting Framework
Bursa Malaysia — ESG disclosure requirements
Environmental Quality (Amendment) Act 2024 — Gazette P.U.(A) 195/2024
Solid Waste and Public Cleansing Management Act 2007 (Act 672)

Last updated: January 2026. Regulations change frequently — verify current requirements with relevant authorities.

Solid Waste Management Regulations in Malaysia: Complete 2026 Guide