CleanerProductionBlueprintFor Malaysia

DEPARTMENT OF ENVIRONMENT
Ministryof NaturalResources
and Environment,
Malaysia
 @ Departmentof EnvironmentMalaysia2OOT

Atl rightsreserved.No partof thispublication mayb9

reproduced, storedin retrievalsystem,or transmitted,
in anyformor by anymeanselectronic, mechanical,
phototypingrecording withoutprior
or otherwise,
writtenpermission of thepublisher.

FirstEdition: November2007
SecondEdition: December2009

tsBN983-9119-88-5
 CleanerProduction Blueprint for Malaysia

TABTEOF CONTENTS PAGE

Cleaner Production Blueprint for Malaysia

Foreword tl

1. CP in Perspective 1

2. Rationale
of CP Blueprint 2

3. StrategicPlanfor Action 3
3.1 CPActionPlans 3
3.1.1 CPAction Plan:Formulation
of NationalPolicy 4
3.1.2 CPAction Plan:Educationaland Awareness
Campaign 7
3.1.3 CPAction Plan:Establishof Networkingand
Disseminationof lnformation I
3.1.4 CPAction Plan:Trainingand CPAudit 10
3.1.5 CPAction Plan:Incentives 12
3.1.6 CPAction Plan:Strengthen
Regulatory-Folicy
Framework 12
3.1.7 CPAction Plan:CapacityBuilding 14
3.1.8 CPAction Plan:CP CoordinationCentre 19

4. RegulatoryFramework 20

5. lncentives 21
5.1 PresentIncentivesthat can be usedfor CP Investment 21
5.2 PresentGrantsthat can be usedfor CP lnvestment 23
5.3 Economiclnstruments 24

6. Conclusion 26

Departmentof Environment, Malaysia

 CleanerProduction Blueprint for Malaysia

FOREWORD
fleaner Production (CP) is synonymouswith best practice environmental
t management. lt is the continuous application of an integratedpreventive
\-zenvironmental strategyapplied to processes, productsand servicesto increase
overallefficiencyand reducerisksto humanand the environment.

The Departmentof Environment (DOE)is the main regulatoryagencyin the country

to enforcethe EnvironmentalQuality Aci1974 and its subsidiarylegislations.
lts main
responsibilities
areto prevent,controland abateenvironmental pollution.Thusserious
stepshavebeentakento controlindustrialpollutionmainlythroughthe useof "end of
pipe" technologiesand enforcementof prescribedstandards.

And in recent years, DOE has progressivelyfocused its aftention to yet another
environmentalmanagement strategy,which is the cleanerproductionconceptto try to
reducethe quantityof effluentsand emissions beingdischargedas well as to achieve
efficientuseof raw materialsand energy.

As part of the effortsto steer industriestowards adoption of more efficient waste

management and cleanerproductiontechnologies, the Departmentof Environment
(DOE)with the cooperation of SIRIMhasembarkedon a studyof implementation of CP
in Malaysianindustriesin 20O2.Thestudyinvolveda surveyof wastemanagement and
overviewof existingsituationin severalindustries.Someindustrieswere selectedfor
actualCPimplementation.

The studywas then continuedin 2003 by the appointmentof UniversitiTechnology

Malaysia(UTM)expertsto developa nationalprogramand actionplansfor promotion
of cleanerproductionin Malaysia.

Thestudyis designedtowardsfindingthe conceptualframeworkfor the promotionand

implementation of CP in Malaysia,including(Smalland MediumIndustries (SMls).
The
overallobjectivesof the studyis to formulate,establishand developa comprehensive
"NationalCPPromotionProgram" for Malaysia
thatencompass strategicandactionplans
for the promotionof conceptand practices of CPanddiffusionof cleanertechnologyin
Malaysia. Thestudyalsoaddresses theneedfor CPtechnologies in prioritymanufacturing
industrialand otherrelatedeconomicsectorsof the countryandamongstthe SMls.

DATO'HAIAHROSNANIIBARAHIM
Director-Ceneral
Department of Environment,
Malaysia

Department of Environ ment, M alaysia

CleanerProductionBlueprintfor Malaysia

Cleaner Production Blueprint for Malaysia

'cleaner Production Blueprint for Malaysia'will
be the basis for future policy
documentin the implementationand presentation of CP practicesin Malaysia.

1. CP in Perspective

Rapid industrialisationin Malaysia requires a National CP Blueprint for its

sustainability.ln the Malaysian'sOutline PerspectivePlan Three (OPP3), the
importanceof CPhasbeenclearlyrecognised. ln specific,ittoucheson the utilisation
of energy and materials,and pollution intensi$ per unit of production resulting
from industrial-urbanbasedgrowth and developmentthat has been identifiedas
a national environment-related issues.A critical challengeis then to reducethe
energy,water,materials,pollutionand wasteintensityof urban-industrial economic
activity.As such,correspondingpolicy,agendaor focus,action plan and activities
needto be formulatedto bring effortsto reduceindustrialpollutionand to promote
and spreadCP principlesand practices,to achievehigher level of environmental
performance.

The Blueprintpresentseight strategicaction plans to addressthe implementation

of CP,and is requiredregulatorypolicy and financial commitments.While it is
generallyrecognisedthat Malaysiahasstrongeconomicfoundation,the mosturgent
and critical need is to improve the existingframeworkto meet the requirement
of sustainabledevelopment and globalisation.The drive towards sustainable
developmentand globalisationhas also brought into focus the product life-cycle,
incorporatingits productionmodes,as well as productquality.

Thereis also an urgentneedfor Malaysiato establisha NationalCP Blueprintfor

the promotionand implementationof associatedactivitieson CP,while rectifying
inherent and improving weaknessesin the existing framework, in particular,
coordinationand integrationof variouspolicies,strategies
and activities,which are
alreadyin place at variousagencies.This shouldsetthe phasefor the next stageof
Malaysia'sindustrialdevelopment.

Department of Envi ron ment, M alaysia

 Cleaner Production Blueprint for Malaysia

The benefis of adoptingand implementationof the CP Blueprintare as follows:

Reduceproduction coststhrough greaterefficiency in the use of raw

materials;
a lncreaseproductivityand often improveproductquality;
a Reduceenergyconsumptionand achievehigherenergyefficiency;
a Cood profitablereturnon investment,savingsin capitalcosts;
a Compliance with governmentalregulations and enhance public
acceptance.

2. Rationaleof CP Blueprint

CP is an effectivemanagementtool for improvementof productivity

enhancementand profitabiliryas well as environmentalconservation.

CPpromotescontinuousapplicationof an integrated preventivestrategy

to processes,productsand services,which in return, improve eco-
efficiencyand reducerisksto humanandthe environment. Thisconcept
overlapsthe conceptsof pollution prevention,waste minimisation,
cleaner technology, eco-industrialengineering,industrial ecology
designfor the environment,life cycle analysis,greentechnology,and
greenaccounting,etc.

CP component activity is able to support the presentinitiativesby

the Malaysian Governmentin preventing,minimising and control
of industrial environmentalpollution problems through legislative
approach. In the past, the MalaysianGovernmenthas adopted the
"end-of-pipe" approach in industrial pollution control, in which
human resourcecapital and environmentalresourcesare investedin
pollution dischargecontrol at the end of the productionline to meet
the regulatoryrequirements. The emphasisof the approachhas many
limitations,primarilynot providingincentivefor furtherenvironmental
protectioninitiatives,as well as - indirectly- discouragingindustries
from i mplementingcost-effective control measures.

CP implementationcould substantiallyreduce,and in certain cases

eliminateindustrialpollution.

CP could also significantlyreducecostthroughhigherproductionand

more efficientresourceutilization,and by reducingthe cost of waste
trbatmentand disposal.

Departmentof Environment,Malaysia
 Cleaner Production Blueprint for Malaysia

' CP implementationwill improvethe public imageof industrialsector

in Malaysia,thus increasethe productcompetitivbat globatmarket.

3. StrategicPlan for Action

The Blueprintshall set a clear directionon the strategicaction plansto be taken.

Although the measuresand line of actions are grouped into separatecategories,it
is usefulto bear in mind that there are highly interrelatedratherthan fall-inginto
watertight compartments.The successfulimplementationof one set of meisures
under a particularobjectivewill also have beneficialeffectson meetingthe other
objectives.

ln order to effectivelyimplementthe cp Blueprint,a comprehensive strategicplan

for action is needed.The strategicplan is basedon the following aspects:
o Productivity-driven
improvement
. Enhancingcompetitivenessof SMlsa global market
. Addressingtechnologicalknow-howimong SMls
o Achievingsustainabledevelopment
The main componentsof the strategicplan for actionare as follows:
. Formulationof NationalPolicy
r Educationaland Awareness Campaign
o Networkingand Disseminationof lnformation
o Trainingand CPAudit
o Incentives
o StrengthenRegulatory- policy Framework
o CapacityBuilding
. CP CoordinationCentre

3.1 CPAction Plans

The promotionand implementationof CP by the industriesrequirecomprehensive

and concertedeffortsby variousagencies.An effectivemethodfoi the implementation
of CPcan be realisedby the formulationof Action Planwhich placestrongemphasis
on implementation,their time scheduleand the objectivesneededio achieve
specifictargets.TheAction Planprovidesthe implementationguide and forms the
milestonewherebyleadagenciescan immediatelyundertaketo preparethe budgets
and allocationof human resources.

Departmen
t of Environ ment, M alaysia
 CleanerProduction Blueprintfor Malaysia

The Action Plan for CP is aimed at enhancing businessactivities through

environmentalprotection and adopting CP. The main featuresof Action Plans
consistof:
. Specificproposedactions
o Targetoutput and objectives
o Yearof implementation
. ldentificationof lead and supportagencies
. Specifytime frameof action
TheAction Planswereformulatedto consistthe followingspecifictasksand projects:
coveringthe aspectof policies,awareness,
informationdissemination, trainingand
audits,incentivesand regulatoryrequirements.
TheAction Plansare listedbelow:

3.1.1 CP Action Plan:Formulationof NationalPolicy

The successof any policy is normally dependenton the involvementof four

major parties, i.e. Covernmentagencies,private enterprises,non-governmental
organisations(NGOs) and the general public. The Governmentagenciesare
responsibleaspolicy implementationand regulation,andthesefunctionscorrespond
and expectation.On the otherhand,the NGOs are
to privateenterprises'aspiration
the environmentalvanguardto sustaina balancedimplementationof any CP policy.
The generalpublic, in addition,will be ale to guideor givefeed backon the policy
implementationand deficiencies.

tn general,the formulation of CP national policy requiresfour main items, as

follows:

i) Formulation of institutional strategicaction plan

The nationalpolicy on CP requiresintegrationand cooperationamongCovernment

agencies,which are presentlyresponsibleto managesustainableenvironmental
protectionand industrialdevelopment.In this scenario,thereis a needto formulate
an institutionalstrategicplan which specificobjectives,i.e.:
o To promoteand implementCP at institutionallevel;
. To clarifr the roadmap& responsibility
of relateorganizations.
The strategicaction plan requiresa policy document (CP blueprint for selected
industries)and incorporateCP policiesinto existingmanufacturingpractices.

Department of Environment, M aIaysia

CleanerProductionBlueprintfor Malaysia

ii) Formulation of CP national policy

Theformulationof a CP NationalPolicyis criticalto illustratethe commitmentof the

Covernment and private sectorsto implement CP practices.The specific objective
is to promoteand implementCP in an integratedmanner.The CP National Policy
will form the blue-printfor the Covernmentto establisha transparentmechanismto
genuinelyimplementa practicalapproachin CP.

CPpolicywillprovideaclearguidelineon
procedure, andincentives
implementation
availableto the industries.

iiD Strengtheningthe existing legal framework

lncorporatingCPrequirements
into the existingregulationswould enableimmediate
application of recommendations made in this study and producs developed
herein.

The existingregulationsof relevanceare:

o Quality Act1974
Environmental
- Environmental Quality (Sewageand IndustrialEffluents)
Regulations1979
- Contraventionlicence
- Licenceto operate
- Environmental Quality (Environmental
lmpactAssessment)
Regulations1987
- Environmental Quality (Scheduled
Wastes)Regulations 2005

ln order to evaluatethe proposedindustrialproject, "CPTech-Database"need to be

establishfor gettingfeedbackpertainingto the proposedproject.The review will be
carried out by Departmentof Environmental(DOE)togetherwith the expert panel
as illustratedin Figure3.1.

Department of Environ ment,M al aysia

 Cleaner Production Blueprint for Malaysia

ProponentIndustrialProject CP technologydatabase
(CPTech-base)(D

hnelof Experts from:

i) Universities
ii) Research institution
iii) Industries

Fgurc 3.1: Procedure to review proposed industrial projecu by DOE

. fndustrialCoordinationAct (1975)
This Act ensures an orderly development and groMh in the
manufacturingsector. lt could also be enhanced to include CP
technologies.In specific, ICA is being for approval of industrial
projecs; henceit could also convenientlyamendedto incorporateCP
application.

r Promotionof lnvestmentAct (1986)

o lncomeTaxAct(1967)

o CustomsAct (1967)

r SalesTaxAct (1972)

. ExciseAct (1976)

. FrdeZoneAct(1990)
These Acts in one way or another influence the funding of
manufacturingsector,and changesor amendmentincorporatingCP
applicationscould be relativelyconvenientto introduce.

Department of Envircnment, Malaysia

CleanerProduction Blueprintfor Malaysia

. Setting up benchmark:auditing to achieve the benchmark level

Benchmarkingis an importantitem in formulationand implementation
of CPnationalpolicy.ln specificthisactivitygenerates
baselinestandard
for comparison.Theobjectivesare:
- To provideindustrieswith productivityimprovementindices
- To providebenchmarksas indicatorof the CP implementation

3.1.2. CP Action Plan: Educationaland AwarenessCampaign

One of the requirementsof the study is to recommendthe efforts needed to

disseminateinformationon CPto increaseenvironmentalawareness
in the industrial
sector.

i) CP Benefitsand IncentivesCampaign

Continuous and concerted effortsare neededto raiseawarenessin both corporate

boardroomand industriesaboutCP.One exampleis to campaignon the benefitsof
good housekeeping,which is cheapand fundamentalbasisfor CP implementation.
The campaignshould emphasizethat lossesin the productionprocessescan be
reducedthroughsimpledata collectionand meticulousdaily controlof lossesthus
identified.

tnformationdisseminationon CP must be continuousto instil interestamong the

corporatemanagers.Methodsof informationdisseminationincludenewsletters, TV
programs,newspaperarticles,seminarsand workshops,informationdatabaseand
establishmentof a websitein the internet.

ii) Pilot CP lmplementation

To ensure the successof the implementationof the CP by the Departmentof

Environment,a pilot CP implementationor a demonstration programmeis needed.
The pilot CP implementationusinga few chosenindustrieswould be an effective
method in convincingcorporatemanagersto carry out CP in their organizations.
A pilot or demonstrationprogrammewould be composedof a study tour to a
relevantpilot factory and a seminarto disseminatethe resultsof the programme.
A corporatemanagerwould learnmore and would alsobe mostencouragedwhen
shown a successfuldemonstrationprogrammeadoptingCP measures. The success
would even be more relevantif successfuldemonstrationprogrammeis in the same
business.

Departmentof Environ ment, M al aysia

 Cleaner Prduction Blueprint for Malaysia

The proposedseminarcoutd be usedto disseminateinformationand datacollected

in the demonstrationproject.The informationand datawould include:
. lncentivesusedsuccessfullyin the projec$
. CP optionsrecommended;
. CP measuressuccessfullyimplemented;
o Benefitsreapedby the demonstrationprojectusingthe CP measures.
The implementationof pilot or demonstrationprojectsfor the various industries
would needsomefinancialgrantsfrom the governmentor internationalorganizations.

3.1.3. CPAction Plan: Establishof Networking and Disseminationof Information

The creation of a network should be initiated immediatelyafter the inception

period.The network is basedmainly on the tradeand manufacturers' associations,
governmentagencies,foreignorganisations,financialand otherrelevantinstitutions.
The networkingactivitiesare implementedto establishlinkagefor the dissemination
of informationand for marketingpurpose.Theseare intendedto servepurposes
which include, among others,direct mailing of marketingmaterials,organising
seminarand workshop,distributionof brochuresand newslefters, arrangementof
visits,questionnairesurvey,etc.
ProposedAction:
. Settingup of CP demonstrationprojects
. EnhanceCP networking
o NationalCProundtable

i) Setting up of CP demonstrationproiects

This will assistin highlightingthe benefitsof implementingCP options through

CP demonstration projects and case studies.The objective is to raise corporate
managers'awareness concerningCP.Thetargetoutputsare asfollows:
o Preparea new fundingschemefor demonstrationprojects
o Campaignfor the CP audit and conductaudit
r Campaignfor the CP demonstrationprojectscheme
o Select model factories from targeted factories for CP audis and
implementCP measureat selectedmodel factories
. Conductdemonstrationactivitiesincluding informationdissemination
on effectiveCP measureimplementedand benefitsachievedby CP
measureand project assessments

Departmentof Environ ment,M aI aysia

Cleaner Production Blueprint for Malaysia

lmplementingAgenciesinvolvedare SIRIM(as LeadAgency),EconomicPlanning

Unit and DOE. lt is hopedthat the agenciescould work out a new fundingscheme
for demonstrationprojectscheme.ln collaborationwith CP consultants,SIRIMwill
endeavourto conductCP auditsand demonstrations.

ii) EnhanceCP Networking

The objectivesare to enhancethe efficiencyof awarenessraisingand information

disseminationin CP.The targetoutputsare:
. Establisha forum on regularor non-regularbasis
. Prepareand distributematerialson CP case studies,incentivesand
sector-based benchmarkthroughi ndustrialassociation
o Establisha PollutionPreventionFartnership(P3)commiftee
DOE is responsibleto set up the P3 committeein order to facilitatethe exchange
of opinions and informationamong the memberson environmentalregulations,
institutions,incentivesand / or CP relatedtopics.Besidesthat, NationalCP Centre
(NCPC)and SIRIMcan be the supportingagencies.SIRIMor the NCPC upon its
founding is responsiblein establishingthe networkwith industrialassociations.

iii) NationalCPRoundtable

The objectivesare to set up linkagesamong stakeholderson how to implement

CP blueprint and to provide a forum-developingconsensuson industrystandard.
Through the CP roundtablemeeting, industrieswould be encouragedto adopt
cleaner technology in its production and manufacturingprocesses.The target
outputsare:
o Annual forum workshopon CP issues
. Proceedingpublishedshowingup datesinformationon CP
A roundtablemeetingwill be calledby DOEwherediscussionforum can be carried
out among the relevantstakeholdersand the supportingagencies- SlRlM, FMM,
SMIDEC,SMIAssociation,Universities.

It is essentialthat a high levelrepresentation is needed(CEOmust

from stakeholders
aftend).The supportingagenciesshould ensurethat the representatives are gathered
for the discussionforum to be successful.ln order to disseminateCP information,
SIRIM togetherwith the study team will organiseseminarsin the courseof the
study.

Department of Environ ment, M al aysia

 CleanerProduction Blueprintfor Malaysia

3.1.4.CP Action Plan:Trainingand CP Audit

CP technologyis a crucial aspectin reducingplant-operationcostsand in cutting

down procesiemissions. What is the bestway to minimisewasteand makethe best
use of the resourcesavailable?Are good housekeepin&Propermaintenance,and
improvement of the utility systemsthe answersto a company'swaste problems?
The answer usually dependson the nature of a company'sprocess,the types of
equipmentand the typesof utilitiesemployed.All in a!1,the CP measuresmustoffer
a wide range of practical and cost effectiveoptions for companiesto consider for
implementation.

Most chemical processindustries(CPl) in Malaysiahave relied on end-of-pipe

treatmentto reduce their processwastes.Thesetreatmenttechnologiesreduce the
quantity of wastesbeing releasedto the atmosphereonce they havebeen generated
but do not point to techniquesto preventthem in the firstplace.Effortsto minimise
wastegenerationin existingplanb has receivedvery little aftention.lt is therefore
importint to consider a holistic approachto CP technologywhich includes all
aciivitiesto avoid,eliminate,or lessenwastegenerationand preventthe releaseof
pollutionto the environment.

ln this course,we emphasizeon the adherenceto the conceptof zero emissions

and waste minimization hierarchyas outlined by United StatesEnvironmental
ProtectionAgency(US EPA).In the order of importance,eliminationof wastefrom
its sourcewill be the most preferredoption, followed by wastereduction, recycling
and treatment.Waste treatmentprogrammehas been widely looked upon as part
of a companies'social responsibilitywhich always incur unavoidableadditional
investmentcosts.With emphasison minimisingas opposedto treatingwaste,these
additional costscan be reducedor avoided.Minimizing wastefrom its sourceof
generationcan help a companyachievethe dual benefitof cleanerenvironment
ind moreeconomicoperationdue to improvedraw materialconsumption,efficient
energyusage,improvedrecyclingand enhancedprocesscontrol.

This courseprovidesa holistic approachto managingwasteto achievethe obiective

of CP.Thetechniquesfor analysisand improvementare simpleand practical.Above
all, the sotutionsoffered cover a wide rangeof practical schemesto reduce waste,
and hence,the operatingcostsfor companiesto consider.

Department of Environment, Malaysia 10

 CleanerProductionBlueprintfor Malaysia

i) This worlchop on CP provides:

r The backgroundof the CP technology;the conceptualunderstanding

of cleaner technology; the latest technological developmens
involving cleanertechnology;and the casestudieson the successful
implementationof cleanertechnology.
. Thetechniquesfor applyingcleanertechnology.Casestudiesinvolving
the applicationof cleanertechnologyon smallto largescaleindustrial
are demonstrated.Problem sessionswill enable participants to
independentlyapply somesimpleapplicationsof cleanertechnology.
o A studytrip to exposethe participants
to a processoperationwheresome
aspectsof cleanertechnologyis implementedwhile otherpotentialsare
highlighted.The trip is followed by discussionsand problem sessions
relatedto the industrialvisit.
. The applicationof cleaner technologyfor the managementof solid
wastes;followed by a casestudyon wasteincineration.
. Somekey wastetreatmenttechnologiesrelatedto cleanertechnology.

ii) TrainingOutcomes

On completionof the course,participantswill be able to:

o Understandthe significanceand incentivesfor CPtechnologyand zero
emissionin the processindustries.
. Recognisethe variouslevelsof wasteminimisationprojectsinvolving
the reaction system, reaction-separationinteractions,separations
systems,and utility systems.
. Apply the techniquesassociated with eachlevelof a processto prevent
wasteand to improveprocessperformance.
o lmplementgood housekeeping techniquesand environmentalaudit
methodologiesduringprocessplant and factoryoperations.
o Usestate-of-the-arttoolsfor wasteanalysisand prevention.

iii) Contentof Training

. CP technologyand waste minimisation- Background,conceptsand

stateof thearg problem,solutionand incentives.lmplementationissues;
Examplesof successfulapplicationsin the developedcountries.
. Sourceselimination (e.9. from reaction system)- Changesin input
materials,reactionchemistryand processequipment.
r Sourcereduction - lmproving yields and selectivitythrough process
changesand reactordesignimprovement.
11 Departmentof Environment,M alaysia
 CleanerProduction Blueprint for Malaysia

. CP involving industrialclusteringand resourceand waste recycling

techniques.
o CPfrom separationsystem.Eliminationof extraneous componentsfrom
separationsystem.Waste exchange- Mass ExchangeNetwork (MEN)
Synthesis.
o Minimising wastefrom utility system- Processenergyintegration,water
pinch.
. CP in the minimizationof solid wastes.Treatmenttechnologiesin CP.
o Waste minimisation in the processoperations.Plant audit, good
housekeeping practices,materialrecycling.

Themoduleconsistsof lectures,discussions, workingsessionsand demonstration of

equipmentandsoftwarerelatedtoauditingand implementation
of cleanertechnology
aswell asworkedcasestudies.Participants will havehand-onexperiencein solving
practicalproblem involvingcleanertechnologyusingstate-of-the-art techniquesfor
simpleand complexchemicalprocesses throughoutthe course.Thecourseduration
will take about five (5) days.The targetgroupthat shouldaftendare environmental
officers,managersand technologistschemical,process,environmentaland other
engineers/ technologists,university lecturers,managers,chemists and other
scientists,techniciansand plant operators.

3.1.5 CPAction Plan:Incentives

tncentivesincludeall financialfacilitiesto enhanceCP implementation.

Theaction
plan programmesare following:
o Existingincentivesfor SMls
r MIDA incentivesfor SMls
r SMlsAccessto commercialfacilitiesby privateinstitutions
. Award System
The existing Hibiscus Awards for industriescould be extendedto include CP
activities.The governmentto make it prestigiousand recognisableshouldendorse
the awards.lt is expectedto improve the moral attitude of investorstowardsCP.

3.1.6 CP Action Plan: StrengthenRegulatory-PolicyFramework

The implementationof the CP requirementsis to employthe existingenvironmental

regulations.This is to ensurethe immediateimplementationof recommendations
made in this study.Therefore,the Departmentof Environmentwould be the lead
agencyto carry out the recommendations.

Depanment of Environment, Malaysia 12

CleanerProductionBlueprintfor Malaysia

Themanagement frameworkfor CPproductionimplementation shouldtry to fit to the

presentmanagement conditionsof the Departmentof Environmenti.e. management
structureand manpower.

A few examplesof how this is to be carriedout are basedon the recommendations

given by the RegulatoryPolicy Framework:

il EnvironmentalQuality (Sewageand Industrial Effluents)Regulations1979

Under Section1l of the aboveregulation,commonlyknown as the Contravention

Licence,the Director-General Environmental Quality may grantthe licencefor the
purposeof contravening the acceptable conditions of effluentdischargespecifiedif
he or she is satisfiedthat there is no known practicablemeansof pollution control
for the said industry and / or the cost of pollution control is prohibitiveetc. The
industryis requiredto pay of
certainamount effluent relatedlicence feesdepending
on the total load of the effluents.

It is recommendedthatCPrequirements isaddedto thegrantingof the Contravention

Licence i.e. general housekeepingpracticesthat would reduce the total load of
effluents.Therefore,some kind of CP audit must be carriedout by DOE officer(s)
prior to grantingof the licencefollowed by enforcementvisit to be done duringthe
periodto the validity of the licence.As mentionedin the capacitybuilding section,
trainingand re-trainingof the officersare neededto allow for befteradministration
of the CP-addedContraventionLicenceManagement.

ii) Written permissionand licence to operate

Section4 (Prohibitionagainstnew and altered sourcesof effluent discharge)of

the EnvironmentalQuality (Sewageand Industrial Effluents)Regulations1979
stressedon the need to get a wriften permissionfor constructionof a new source
or modificationsof the presenteffluentdischarge.Meanwhile,under section2 of
the lndustrialCo'ordinationRules,1976 any manufacturingoperatorneed to give
informationabout the operationof the plant usingform ICA 1, ICA2, ICA 3, ICA 4,
ICA 4A, ICA 5, ICA 5A, or ICA 6 as indicatedin the FirstScheduleof the said Rules
as well as a copy of all other licencesissuedunderany otherwritten laws.Eachof
the tCA forms indicatesabove has a standardSectionE, F and C to be filled with
detailsof the effluentsand pollution control.

13 Departmentof Environ ment, M al aysia

 CleanerProduction Blueprint for Malaysia

Cp audit can be usd to ensurethat the operatordo give the right information and
aaually have the said machineryand / or processesfor both of the said legislation
above.Any non-complianceor deviationfrom the truth shouldbe consideredas an
(i)
excusefoithe ,euocationof the licenceto operate.Similarto above,trainingand
t"-tr"ining of the officersare neededto allow for an improvementof environmental
enforcement.

3.1.7 CP Action Plan:CapacityBuilding

i) Introduction

tn order to strengthenthe implementationof CB it is important for leading

in CP to havecontinuousprogramme. in
organisationswhic"hare directly invo.lved_
ca"pacitybuilding.Cp promotioninvolvesintegratedcourse of actionssuchas raising
of'awaieness,trlinini, consultancies,enfor-ementof CP policies, advisoryand
also researchcapabilities.Capaci$ building should not be limited to Sovernment
institutionsbut nther it requiresimportantcommercialsectorsespeciallybank and
financialinstitutionsto play an activerole in the promotionof CP.

ii) Obiective

The main obfectiveunderthis sectionof the Action Planis to increasethe capacity

UuilAingof llading organisationsthat promoteCP.In specificterms,the capacity
buildin[ activitieswilt Uetargetedto achievethe followingobjectives:
r To establishNationalCP Centre(NCPC)
qglected
. To develop expertisein CP Audib for 1gJ1ci9s
. To strengthenenforcementcapacity rellted tg cq lor DoE officers
r To devetp coursesand training 6n CP at local institutionof higher
learning
o To intensifv more cP related R&D activities within universities,
UniversityCollegesand also researchinstitutes'

Departmentof En viron ment,M aIaysia 14

CleanerProduction Blueprintfor Malaysia

iii) Formation of National CP Centre

It has been highlightedpreviouslythat CP has been recognizedas an effective

managementtoolforimprovementofproductivity,enhancementofprofitabiliryand
as well as environmentalperformance.CP conceptoverlapswith the conceptsof
pollution prevention,wasteminimization,eco-industrialengineeringdesignfor the
environment,life cycle analysis,greentechnology,and greenaccounting etc. CP
also requiresthe integrationof manyfactorsincludingraisingthe awareness
among
the industrialcommunitiesand guidancefor the implementationof CP methods"
There should be a coordinatingcentrewhere advisoryservices,informationwith
regard to CB training can be made availablewith easy access.Therefore,the
formation of a National CP Centre(NCPC)is necessaryto provide the industries
with CP relatedservices.

It is proposedthat NCPCbe establishedwithin DOE,which will functionto develop

CPexpertiseand to coordinateR&D relatedto CPapplications.SIRIMcan continue
to play an activerole in promotingCPthroughdemonstration projects.DOE hasset
up a small unit on CP which needto be expandedto caterfor the growing needs.
With this setup, DOE can spearheadactivity participationamongstSMIDECand
MOSTT.

Theactivitieswithin NCPCshouldcoverareassuchascoordinatingR&D pertaining

to CP application,trainingof CP Auditors,grantingof fundsfor CP promotionand
researchactivities,and spearhead developmentof new conceptsprojectsto enhance
environmentalsustai nabiIity within i ndustrialsectors.

NCPCwill needthreemain divisionsto functionas coordinationcentre,theseare:

. CPAuditTrainingdivision
. CP projectsdivision
. CP R&D division

The NCPCorganisationstructureis proposedin shownin Figure3.2 asfollows:

15 Departmentof Environment,M alaysia

 CleanerPrduction Blueprint for Malaysia

NCPCDirector

CPAudit Training CPProjects CPR&D

o Providetraining o Consultancies . Fundamental

o Organise courses o Advisory research
o Extensionservices . Technicalaid/ grant . APPliedresearch
scheme o Contractresearch

frgure 3.2: ProposedNCPCorganizationalstructure

tn future, it is expectedthat the Centrefunction as a single contact point on CP for

industriesand all relevantorganisations.

iv) Developmentof Expertiseon CP Audits for SelectedAgencies

There is a need to develop expertiseon CP for CP auditors, namely from SlRlM,

University,UniversityColleges,and researchinstitutes.Thetypesof expertiseneeded
for CP auditorsare:
r CPgeneralauditskill
. CP audit relatedto environmentallawsand regulation
. CP audit relatedto EnvironmentalManagementSystemeg. ISO 14000
. CP audit relatedto production process
. CP audit relatedto end-of-pipepollution control
. CP audit relatedto sludgeand wastemanagement
The method of developingexpertisecan takesthe form of formal training on the job
auditing consultancyservicesand also involvementin demonstration projects.

v) Strengthening enforcement capacity related to CP for DOE officers

fu a primary authority for implementationand enforcementof the EQA, DOE has

direct linla with the industriesespeciallySMtswhich requirespecificadvisefor the
adoption of GP in their processes.fu such, DOE should havecompetentofficersand
adequatecapacityto evaluateprocesses.

Depattment of Environment, Malaysia 16

CleanerProductionBlueprintfor Malaysia

ln orderto strengthen
theenforcement
capabilityof DOEofficersin environmental
auditin&varioustoolsneedto be madeavailablewhich includeprocedureand
guidancemanuals.The prioritydocuments
shouldbe well developed,listedas
follows:
o Manualon Notificationto industries
o Monitoringprogramme andauditguidelines
e EnvironmentalInspectionandCompliance checklist
. Exampleof CPpojectin majorindustries
eg.palmoil, rubbe,platingac.
r Industrialdatabasedecisionsupportsystemeg. GIS on Pollution
Sources
Officersfrom DOE will need re-trainingand to attendcourseson wastewater,
emission,schedule
wastes,legalissues,CPdemonstration projects.

vi) Developmentof courcesand trainingon CP at local institutionof higher

learning

The awarenessof CP among professionaland sub-professional level must be

introducedat tertiaryeducation.Industrymanagers and engineers workingin
industrialsectorshouldhaveexposurein environmental management including
implementation of CPmethodto minimizepollution.Environmentalcoursestaught
shouldpresentCPas
at Universities a managementtool aswellastechnologysolution
thatoffersgreatbenefits.
fu such,the importanceof CPconceptsandis application
shouldbe includedin environmental at university
courses undergraduate
aswell as
postgraduate levels.

Presently,
CPcurriculumis notofferedasa coursein itsown but ratherit formsonly
asa smallportionin environmental pollutioncontrolcourses
at manyUniversities.
SomeUniversitieshavebeenofferingcoursesthat may haveelemensof CP,for
instancewastewaterengineeringor pollutioncontrolor processdesignsubjects.
However,CP methodwas neverpresented as a managementtool to be promoted
duringplanning designand operationof processing plants.lt hasalwaysbeen
consideredin the formof end-of-pipesystem.

Therefore,it is up mostvital for Universities

to strengthenthe capacitybuildingto
allow moreCPcoursesto be offered.Forthat reason,the followingpre*equisites
mustbe implemented:
o Enhancestaffsexpertisein CP
o New recruitment for CPtrainersor instructors

17 Department of Environment, M aIaysia

 CleanerProduction Blueprintfor Malaysia

o lntroducemoreCPrelatedcourses
o lmprovefacilitiesfor CPteachingandtraining
o Moreresearch topicon CP
. linkages
lntensive betweenUniversity
andindustries
o Fundsto be madeavailable to promoteR&Don CPapplication
The ultimateobjectiveis to providea comprehensive educationalprogrammeor
awarenesson CPas well as to increasecompetency
for the followingtargetgroups:
o managers
lndustrial
o Bankers
r FinancialInstitutionofficers
. Research agencies
. Covernment officersfromMlTl, SMIDEC,MIDA,etc.
. Enforcement officersfor DOE
. Auditpersonnelfrom SlRlM,DOE,DOSH

vii) Intensificationof more CP related R&D activities within Universities,

Univenity Collegesandalsoresearchinstitutes

Research and research

activitiesare mainlycarriedout at Universities institutes.
thereare very few R&Dtopicson CB
Unfortunately, which was aPproved by the
governmentunderIRPAfunding. reasons
Possible can be attributedwhich arelisted
asfollow:
. CPis misunderstood by manyaslimitedto housekeeping activities
. CPhasnot receiveddue importancein Malaysia
. CPexpertise arescarce
. CPsuccess storiesarenotwidelydisseminatedto the industries
o CPimplementation with highexpenses
is alwaysassociated andnota
popularchoicewithinindustries.
Forindustries
to appreciateCP,documented evidenceshowingsuccess storiesand
monetarybenefig must be made available for reference.
Researchoutputs from
R&Dactivitiesareextremelyimportantto illustratethe CPbenefits.Demonstration
projectsplannedfor CPapplication shouldhavecomponents of R&Dthatwill aid
of higherlearningandresearch
teachingandtrainingat institution organisations.

Depattment of Environment, Malaysia 18

CleanerProductionBlueprintfor Malaysia

3.1.8 CP Action Plan:CP CoordinationCentre

i) Waste ExchangeCentre

TheWasteExchange(or Management) CentreWEC) is a dedicatedsystemin buying

and sellingof all typesof waste.WECwould benefit:
o Companiesthat are seekingcost effectiverecyclingsolution for their
unwantedmaterials;
o Municipalitiesthat are interestedin finding new or alternativemarkets
for the materialsrecoveredthroughtheir recyclingprograms;and
. Manufacturersthat need to securereliable, high qualiry sourcesof
commodities.
TheWEC will providewith an easyto usemethodfor makingan offerfor the many
commoditiesthat the participantmight haveavailablefor sale."Lookingto buy" or
"Lookingto sell" optionswould be madeavailableto membersonly. lf transactions
a small percentagewill be chargedas servicefee.
are successful,

The systemwill also offer information- such as markettrends,and requirements,

including specifications.Additionally,the WEC could be linked to other website
wh ich providesvaluablecorporatei nformation.

Rapid industrializationand urbanizationinevitablygeneratesignificantquantitiesof

Someofthesecouldbe hazardouswhileothersmaybe non - hazardous.
industrialwaste.
Creationof WEC would give an alternativeoption to minimize the wastegoing for
treabnentand disposal.

WEC will work along the stockexchangeconceptexceptthat herethe commodity

for selling& buying in Malaysiawill be wastesinceone industry'swasteis another
industry'sresource.Currentlyvery littlewasteexchangeoccurssincethe information
is generallynot revealedand thereis no systemfor a propermanagement pertaining
to wasteexchange.

Participantswill be requiredto give detailed informationon the waste available

or required.The highestbidder may purchasethe commodity.lt is proposedthat a
WEC be establishedwith the collaborationof MalaysianManufacturers Association
(MMA), DOE and other relevantand interestedparties.This could divertthe waste
from just treatmentand disposal.

19 Department of Environment, M al aysia

 CleanerProduction Blueprint for Malaysia

4. RegulatoryFramework

Thereare a few existingregulationsthat directly or indirectly,promotecp as

follows:
o Environmental Quality(Prohibitionin the Useof Chlorofluorocarbons
andOtherGases asPropellantsandBlowingAgenb)Order.|993.
o Environmental Quality(Prohibition
on theUseof ControlledSubsances
in Soaps,SyntheticDetergent andOtherCleaningAgents)Order1995.
o Environmental Quality(HalonManagement) Regulations1999.
r Environmental Quality (Refrigerant
Management) Regulations 1999.
SinceCPrequires a massive re-engineeringconceptual andpolicylevelsin pollution
control,thereforeit is a needto introducea new regulation,underEnvironmental
QualityAcI1974.Theregulation canbe knownasEnvironmentalQuality (Cleaner
Production)Regulations, xxxx. Thereis alsoa needto reviewthe presentactsand
regulations,
e.g.Factories and Machinery Act 1967,andoccupationalsafetyand
HealthAct1974,to be moreCP-driven.

TopromotecP at policylevelin manywaysinvolves exploring

a muchwiderscope
of possibleactivitiescomparedto the CPeffortsdirectedstraighttowardsindustry.
Actionscanbetakenin a widevarietyof areasincludingthefollowing:
o lncrease theprofitabilityof CPmeasures by forexample
environmentat
taxation;
. Easyfinancingof CPinvestments;
o lntroducelegalincentives for CP;
r Moreeffectiveenforcement of legislation;
. Raising aftentionto the issueby information;
. Subsidies for CPservices;
. Benchmarking of companyperformance;
o Trainingandeducation.

Depaftment of Environment, Malaysia 20

CleanerProductionBlueprintfor Malaysia

5. lncentives

5.1 PresentIncentivesthat can be usedfor CP Investment

At present,there are many incentives,both direct or indirect, are provided for in

the promotionof lnvestmentAct 1986, IncomeTaxAct 1967, CustomsAct 1967,
SafesTax Act 1972, ExciseAct'1976and FreeZone Act 1990. Theseincentivesare
importantto be highlightedas part of the packageincentivesfor promotionof CP
investment.

i) lncentivesfor the EnvironmentalProtection

lncentivesfor the Storage,Treatmentand Disposalof Toxicand HazardousWastes

lncentivesto encouragethe settingup properfacilitiesto store,treatand disposetoxic
and hazardouswastes.AmongothersincludePioneerStatus(incometax exemption
on T0 per centof statutoryincomefor five years),InvestmentTaxAllowance of 60 per
centof capitalexpenditureincurredwithin a periodof five yearsto be setoff against
70 per cent of the statutoryincome in the assessment year,etc. All applicationfor
theseincentivesare to be submittedto MIDA.

Ince ntivesfor Energy Conservation

ln order to reduce operationcostsand at the sametime promoteenvironmental
preservation, companiesprovidingenergyconservationservicesqualityfor Pioneer
Statusor InvestmentTaxAllowance.

lncentivesfor Waste RecyclingActivities

Companiesundertakingwaste recycling activitiesthat are of high value added
and use high technologyenjoy PioneerStatusor InvestmentTax Allowance.This
includesrecyclingof agriculturalwasteor agriculturalwood-basedpanelboardsor
products.

lncentivesor Utilising Biomass

To encouragethe generationof energyusingbiomasswhich is renewableand also
environmentfriendly,companiesthat undertakesuchactivities,qualityfor Pioneer
Statusor lnvestmentTaxAllowance.

21 Department of Environment, M al aysia

 Cleaner Production Blueryint for Malaysia

ii) Present tncentives on Exemption fvom lmport Duty and Sales Tax on
Machinery and Equipment(Existing)

lmport duty and salestax are not imposedon most machineryand quipmentthat
are not produced locally.Where import duty and salestax apply,exemptioncan be
obtainedfor machineryand equipmentusedfor the following:
o ln the manufacturingprocessesor manufacturingrelatedservicesor
agricultural processes,etc.;
o Forenvironmentalprotection,energyconsenration, biomassenergy,wastes
rrycling storage,treafinentand disposalof toxic and hazardouswastes;
r Formaintenanceand qualitycontrol;
. For approved R&D activities;
. In the plantationsector.

iii) PresentIncentivesfor the Use of EnvironmentalProtection Equipment

Companiesusingenvironmentalprotectionequipmentreceivean initial allowance

of 40 per cent and an annualallowanceof 20 per cent on the capitalexpenditure
incurredon such equipment.Thus,the full amountcan be written off within three
years.Claimsshouldbe submittedto lnland RevenueBoard(lRB).

iv) PresentIncentivesfor the ManufacturingSector

The major incentivesfor companiesin the manufacturingsectorare PioneerStatus

or lnvestmentTaxAllowance.

PioneerStatus
A company granted PioneerStatusenjoys a S-yearspartial exemptionfrom the
paymentof incometax.

I nvestmentTaxAllowance (ITA)
A company granted ITA gets an allowanceof 60 per cent of qualifying capital
expenditureincurredwithin five yeasform the date on which the first qualifying
capitalexpenditureis incurred.

Departmentof Environment, Malaysia 22

Cleaner Production Blueprint for Malaysia

5.2 PresentGrants that can be usedfor CP lnvestment

D Industrial TechnicalAssistanceFund (ITAF)by SMIDEC

The industrialTechnical Assistance Fund(ITAF)Schemehasbeenin operationfor 10

years,since its inception in 1990. over the period, the schemehas been reviewed
and fine-tuned to meet the different needs of SMls at different stagesof their
development.Thereare four componentsunderthis schemenamely,rrAFl, rrAF2,
!TAF3,and the FactoryAuditing Crant. ITAFI is availablefor technologyfeasibility
studyfor cP. ITAF2is applicablefor improvementand upgradingof existingprocess
for cP. lrAF3 is applicablefor productivityimprovementwhich is one of ihe main
schemesof cP. In additionto lrAE,the FactoryAuditingGrantfor assistingsMls in
auditingtheir capabilitiesof managemenffinancial,production,logistic,marketing
and R&D which is one of the applicablegrantsfor CPpromotionand potentialto be
linkedto the largecompanies.

ii) Training Incentives

. Double Deductionfor ApprovedTraining

Manufacturingandnon-manufacturingcompaniesthatdo notcontribute
to the Human ResourceDevelopmentFund(HRDF)qualify for double
deductionon expansesincurredfor approvedtraining.

Forthe manufacturingsector,the trainingcould be undertakeninhouse

or at approvedtraininginstitutions.However,for the non-manufacturing
sector,the trainingshouldbe heldonly at approvedtraininginstitutions.
Approvalis automaticwhen the trainingis at approvedinstitutions.

. DeductionforPre-EmploymentTraining
Training expensesincurred before the commencementof business
qualify for a single deduction.Nevertheless, companiesmust prove
that the traineeswill be employedas their employees.

o Deductionfor Non-Employee Training

Expensesincurredprovidingpracticaltrainingto residentswho are not
employeesof the companycan be consideredfor singlededuction.

o Deductionfor CashContributions
Contributionsin cash to technicalor vocationaltraining institutions
that are not operatingprimarily for profit and those establishedand
maintainedby a statutorybody qualifyfor singlededuction.

23 DepartmenI of Environment, M al aysia

 CleanerProduction Blueprint for Malaysia

. Human ResourceDevelopmentFund
The Human Resources Development Fund (HRDF), aimed at
encouragingdirect privatesectorparticipationin skills development,
was launchedin 1993 with a grantfrom the government.

The HRDF operateson the basisof a levy / grant system.Employees

who havepaid the levy will qualifyfor traininggrantsfrom the fund on
defrayor subsidisetrainingcostsfor their Malaysianemployees.

. SpecialIndustrialBuildingAllowanceforTraining
Companies that incur expenditure in building used for approved
industrial, technical or vocational training can claim a special
industrialBuildingAllowance(lBA)of 1Oo/o (or 10 yearson qualifying
for the constructionor purchaseof a building.

5.3 Economiclnstruments

Economic incentivesor instrumentsare defined as instruments that use financial

meansto motivate polluterc to reduce the health and environmental risk posedby
their f'acilities,processes,or products.Theseincentivesprovide monetaryand near-
monetary rewardsfor polluting lessand impose costsof varioustypes for polluting
more,thus supplyingthe necessarymotivationto polluters.

This approach provides an opportunity to addresssourcesof pollution that are not

easilycontrolledwith traditionalformsof regulationsas well as providinga reason
for pollutersto improve upon existingregulatoryrequirements.Under traditional
regulatoryapproaches,polluters have little or no incentiveto cut emissionsfurther
or to make their products less harmful once they have satisfied the regulatory
requirements.

The objectivesof the economic instrumentsare as follows:

o To enhance control pollution by harnessingthe power of market
incentives,

o To offer a more cost-effective,flexible and dnamic form or regulation

than conventional regulatorymeasures.

Department of Environment, Malaysia 24

CleanerProductionBlueprinl for Malaysia

Typesof EconomicIncentives

ln generalthe incentivescould be divided into sevencategories,

as follows:

o Taxes,Feesand Charges:In principlethe generatorof pollutantspaysa

fee or chargeor taxesfor eachunit pollution.

o Deposit-RefundSystem:Which requires a monetary deposit at the

time of saleof a productand the depositis returnedwhen the item is
returnedat the end of is usefullife.

o Marketable Permits:There are two types of trading systems,cap-and-

trade systemsand credit systems.

o Subsidies:Normally usedat all levelsof governmentto help manage

environmentalpollution like grants,low-interestloans,favourabletax
treatment,and preferentialprocurementpolicies for producs believed
to poserelativelylow environmentalrisks.

. LiabiliV: An incentivefor sourcesto reduceor avoid pollution, since

if found liable they can face extraordinarilylarge and unpredictable
damageclaims.

o lnformation Disclosure:The collection and public availability of

informationon environmentalperformancesto be a strongincentive
for sourcesto reducetheir emissionof pollution.

o Voluntary Actions: A variety of programsby DOE to encouragethe

sources like private companiesand schools in essenceto reduce
specifickindsof pollution.

At presentmost of the incentiveson taxes,fees,chargesand subsidiesare available

in Malaysia.However,it can be furtherstrengthened and enhancedespeciallyon
deposit-refundsystems,marketablepermits,liability, informationdisclosureand
voluntaryaction.Table1.1 presentsvariouscategoriesof economicincentivesthat
can be consideredto be implemented in Malaysia. Everycategory is designedto
targeta specific measureor sectorand requirea separateevaluationor stud, which
undertakenduring an annual budget dialogue betweenMinistry of Financeand
stakeholdersof .energysectorsi nvolved.

Departmentof Environ ment, M al aysia

 CleanerProductionBlueprintfor Malaysia

Table l.l: Categoriesof economic incentivesfor environmentalmanagementrelated to CP

implementationin Malaysia

Fees,Charge,Taxes USA.Nordic Doubletax reliefor single

countries*,Germany, tax relieffor severalyearson
Switzerland,UK, investmentfor R&D in CP; CP
Japan machineryor feasibilitystudy;or
CP implementation.
Deposit-refund USA,Japan, Reductionof contraventionfee as
system Cermany,Nordic statedin Environmental Quality
countries* Regulation (Sewage and Industrial
979 (Part5,
Effluents)Regulationsl
Section11)
Marketablepermits USA,Japan,Cermany Recyclableproducts
(aluminiumcans)
Subsidies USA,Japan,Nordic Reductionof BOD or carbon
countries* emissions
Liability USA,Japan,Nordic CP projectconsultancy,
countries* low-interestloans
lnformation USA,Cermany Regulation in liability
disclosure and public health
Voluntarvactions USA,Japan, Regulationon rightto information
Cermany,Nordic (lSO14000),public
by industries
countries and NCOs (policing)
* Nordiccountries(Norway,Denmark,Sweden,lceland)

6. Conclusion

The principlethrustfor the CP Blueprintwill be the improvement of commercial

productsin manufacturingsector.Effortswill focus on mobilisationon incentives,
both directly and indirectlyto attain a higher participationamong SMls.The
and prioritieswill contributetowardsthe buildingof a resilient
sectoralstrategies
and competitivemanufacturingsector,in line with the nationaltargetto achievea
develqpedcountry statusby 2020.

Department of Environ ment, M aIaysia