Malaysia Commits to Sustainable Circular Economy with New Enforcement Powers

In October 2025, the Ministry of Natural Resources and Environmental Sustainability (NRES) announced Malaysia's commitment to a greener and more sustainable circular economy following the Meeting of Environmental Ministers (MEXCOE). A core initiative involves promoting the use of organic fertilizer derived from biosolids, the downstream products of sewage treatment plants, managed by Indah Water Konsortium Sdn Bhd.

To strengthen enforcement against environmental crimes, the Department of Environment (DOE) implemented the Environmental Quality (Delegation of Powers to Government Departments, Local Authorities and Corporations) Order 2025, effective July 8, 2025. This order coordinates and expands the DOE's authority from investigation to prosecution, enhancing efforts to enforce the Environmental Quality Act (AKAS) 1974.

Additionally, the National Water Research Institute of Malaysia (NAHRIM) is developing new sensor technology. This technology will be used by state-level agencies to monitor effluent from high-impact activities such as logging, mining, quarrying, plantation, and development activities, enabling continuous real-time monitoring with improved data integrity.

Finally, the Ministry of Human Resources' Department of Occupational Safety and Health (DOSH) highlighted its 2017 Guidelines for Asbestos Removal. These guidelines serve as the main reference to ensure the safe handling and disposal of asbestos across Malaysia, thereby controlling public and worker exposure to hazardous fibers.

Expanded enforcement powers signal Malaysian environmental compliance is shifting from voluntary-plus-guidance to prosecution-capable, particularly for industries with visible effluent like logging, mining and plantations. Our sustainability-due-diligence and impact-assessment teams help clients evaluate their compliance posture ahead of the DOE's tighter stance, and align it with Bursa Malaysia disclosure obligations.