Eric Tan Boon Hai, Founder & President, Malaysian Non-Ferrous Metal Association, who spoke at the MRAI Business Summit in Bangkok said Malaysia is depended on imported recyclable materials to meet its growing demands. "Locally-generated metals should be complemented by imported secondary materials."

He noted that the future of the imported recycled material in Malaysia looks uncertain. He attributed it to various factors including Malaysia’s import policies, source country export policies, competing country’s import policy, international rules and regulations and Malaysia Business Ecosystem.  

“Until 2018, Malaysia had not implemented restrictive policies for the import of recycled materials but this changed when China banned the import of scrap into its border, resulting in an influx of waste into the Malaysian shores. Even agricultural lands were repurposed illegally to accommodate this influx and it affected our environment.”

Malaysia brought out ‘Import guidelines for importation of metal scrap’ in January 2020 and ‘Guidelines for the importation and inspection of metal scrap’ in December 2021.  The 2021 guidelines, brought out by SIRIM QAS International, mandated that imported metal scrap is not contaminated with any scheduled waste, hazardous materials or other impurities that can cause the recycling process to be carried out not in an environmentally sound manner. It set a purity standard of 94.7 per cent for metals.

“These restrictive policies resulted in a significant decrease in the copper-bearing scrap import from the US to Malaysia. From 2020 to 2022, the import decreased by 62 per cent,” Boon Hai noted. 

“We, at the Malaysian Non-Ferrous Metals Association, support government efforts to regulate and are ready to comply with rules and regulations, but we disagree with the restrictive import policies.” Severe restrictions can impede Malaysia’s ability to manufacture advanced products, he noted, adding, “The ramifications of these could be significant, especially given the importance of these minerals in today’s products.”  

He spoke about how the tightening of EU exports and China’s opening of the market for the import of non-ferrous metals could have an impact on Malaysia’s metals industry. In 2023, China opened its door for nonferrous scrap, showcasing a willingness to abandon or loosen some policies. This saw a rebound in aluminum and copper scrap imported by China. Ending on a positive note, he said Malaysia’s strategic location - closer to two power houses China and India - and partnership with countries such as the US, Europe, Australia and Japan, positions his country at a competitive advantage in the global market.