Tengku Datuk Seri Utama Zafrul Aziz, Minister of Investment, Trade and Industry recently emphasised the urgent need for a circular economy in light of unprecedented global challenges, including climate change and resource scarcity.
During officiating the Circular Economy Policy Framework for the Manufacturing Sector during the 2nd Petrochemicals Sustainability Conference (PSC) held at the Kuala Lumpur Convention Centre, he noted that the petrochemicals industry, vital to Malaysia’s manufacturing sector, has historically operated on a linear model characterised by extraction, production, consumption, and disposal.
The new policy aims to reformulate these practices, promoting sustainability and reducing greenhouse gas emissions.
“The Circular Economy Policy Framework is essential for elevating the sector’s contribution to the GDP while ensuring a reduction in CO2 emissions from its current 20%,” said Zafrul.
He highlighted the importance of Extended Producer Responsibility (EPR) within the framework, which encourages producers to take responsibility for their products throughout their life cycle, incentivizing more sustainable practices.
Zafrul also stressed the need for collaboration among industries to achieve net-zero emissions by 2050, stating that “achieving Net Zero must be a whole-of-nation effort.”
He called on manufacturers to innovate and actively participate in the circular economy ecosystem, moving away from traditional waste management approaches.
The Minister pointed out that Malaysia faces potential extraction of one billion tonnes of natural resources annually by 2030 if conventional methods continue, which would significantly increase industrial waste and pollution risks.
He underscored the importance of building an industrial ecosystem that ensures long-term sustainability and resilience.
Furthermore, Zafrul discussed the broader context of the circular economy within ASEAN, noting that failure to address climate change could result in Southeast Asia losing up to 11% of its GDP by the end of the century.
He cited recent erratic weather patterns in Malaysia that have already caused substantial agricultural losses, emphasizing the collective responsibility of all sectors in combating climate change.
As Malaysia prepares to chair ASEAN at the end of the year, Zafrul affirmed the country’s commitment to enhancing regional sustainability efforts and facilitating access to financing for climate resilience.
In closing, the Minister expressed hope that the discussions at the PSC would generate innovative ideas and collaborations to advance Malaysia’s circular economy agenda.
The conference, organised by the Malaysian Petrochemicals Association (MPA) in conjunction with Oil and Gas Asia 2024, features prominent speakers from both public and private sectors addressing the theme “Future Ready Petrochemicals.”
