Malaysia S E Waste Problem Explained

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A police team examining a mountain of e-waste found at a factory by the Sungai Siput-Kuala Kangsar road in Perak last month. (Bernama pic)
PETALING JAYA: Illegal e-waste operations have made the headlines in Malaysia over the past few weeks, with materials worth billions in ringgit seized by the authorities in various raids.
A nationwide crackdown from January last year to Feb 17 this year led to the seizure of RM3.8 billion in materials, and the arrest of 538 people.
The authorities seized 301 containers between March and June; 106 containers were filled with e-waste and scrap metal, mostly from developed countries such as the US.
FMT takes a closer look into e-waste, why some are concerned, and what others see as potential benefits.

What is e-waste?
E-waste, or electronic waste, refers to discarded electrical or electronic devices that are no longer functional or needed, and is generally categorised into industrial and household e-waste.
Industrial e-waste, generated by businesses and factories, includes large-scale power supply units, circuit boards, computer servers and automation systems.
Household e-waste consists of consumer-discarded items such as TVs, computers, smartphones, air conditioners, washing machines and refrigerators.
E-waste holds significant recycling value due to its rich content, including valuable metals like iron, tin, gold, silver and copper, which can be processed for export.
However, the high costs of recycling and strict regulations in advanced countries has led to e-waste being exported by those countries.
Illegal e-waste shipments
Malaysia banned imports of e-waste in 2012 and exports in 2017 unless a written approval is obtained from the environment department (DoE). Despite this, illegal shipments still flood the country.
Last year, global waste trade watchdog Basel Action Network warned the natural resources and environmental sustainability ministry of a surge in illegal e-waste trafficking to Malaysia, particularly from North America.
The group’s executive director, Jim Puckett, said Malaysia had become a top target for illegal e-waste traders, as the electronics industry looks for new dumping grounds instead of managing its waste domestically.
He said the Basel network’s investigations had uncovered a direct export pathway from the US to Malaysia, primarily through Los Angeles port.
In Malaysia, the customs department had said that consignments of e-waste were being illegally imported through fraud and the use of false declarations, with operators allegedly giving bribes to prevent enforcement action.
The Enforcement Agency Integrity Commission recently found that several DoE officers tried to allow the release of illegal e-waste consignments from Port Klang in May 2024.
On the other hand, the environment minister, Nik Nazmi Nik Ahmad, said many developed nations falsely assumed that e-waste in their countries was ethically processed, unaware it was often smuggled into developing countries under false declarations.
What happens next
Illegal businesses obtain these illicit shipments and exploit the high recyclable value of e-waste through unlicensed processing facilities. Valuable metals are then extracted and exported for profit while bypassing environmental regulations.
Last year, authorities raided an illegal e-waste processing factory in Tikam Batu, Kedah, which was reportedly generating over RM10 million a month from precious metals.
Investigations have since uncovered more than 200 illegal e-waste recycling facilities across Malaysia, particularly in Segamat, Johor; Gurun, Kedah; and Teluk Panglima Garang, Selangor
In February 2024, Nabila Zulkeflee, an environment officer from the Center to Combat Corruption and Cronyism (C4), conducted site visits in Sungai Petani, Kedah; Telok Gong in Port Klang; Klang; and Seremban, Negeri Sembilan, uncovering many abandoned illegal landfills containing e-waste.
“Some sites contained piles of processed e-waste cut into small pieces, with some being openly burned” she told FMT.
Environmental and health concerns
Illegal import and processing of e-waste in Malaysia has resulted in growing piles of unusable scrap in hidden, unmanaged landfills, said Nabila.
“These landfills, often located in hidden locations, are burned and left unmanaged. This is a serious concern since e-waste contains toxic and hazardous materials such as mercury, lead, cadmium and others that can harm both the environment and humans,” she said.
Improper disposal and illegal processing, such as the burning of e-waste, have led to increasing cases of respiratory illnesses and increased risks of neurological disorders and cancer.
Over time, the accumulation of toxins also disrupts ecosystems, threatens wildlife and food chains, contributing to the environmental crisis in Malaysia.
There is also an economic burden, with billions in tax revenue lost from illegal e-waste operations and the government forced to spend more on cleanup efforts and enforcement.
An economic opportunity
There are some arguments that properly implemented recycling and processing of e-waste could be profitable and sustainable for the country. A proper system of e-waste recycling is seen as key to a circular economy, ensuring valuable materials are reused instead of discarded.
Refurbishing and reselling of electronic products extends product lifespans, creates a secondary market and reduces waste. Proper recycling of e-waste will allow the recovery of valuable metals, while providing for materials to be repurposed. It could also lower the reliance on costly mining while cutting disposal expenses for businesses.
By transforming waste into a profitable resource, e-waste recycling could drive economic growth while promoting environmental responsibility.
However, Puckett has pointed out that if e-waste processing could be so profitable and sustainable, firms in the US and other nations would already seek to set up their own green facilities to process e-waste. - FMT

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