Incorporating a Manufacturing Company

Environmental Policy

Environmental Requirements

Incentives for the Storage, Treatment and Disposal of Hazardous Wastes

In the promotion of an environmentally sound and sustainable development, the Government of Malaysia has established the necessary legal and institutional arrangements for environmental protection.  As such, investors are encouraged to give attention to the environmental factors at the early stages of their project planning.  Some aspects of pollution control to be considered are:

• find possible modifications in the process line that can minimize waste generation;
• see pollution prevention as part of the production; and
• consider recycling option as far as possible.

1.    Environmental Policy

National environmental policy in Malaysia places great emphasis on the following objectives:

• to maintain a clean and healthy environment;

• to maintain the quality of the environment relative to the needs of the growing population;

• to minimize the impact of the growing population and human activities relating to mineral exploration, deforestation, agriculture, urbanization, tourism and the development of other resources on the environment.

• to balance the goals for socio-economic development and the need to bring the benefits of development to a wide spectrum of the population against the maintenance of sound environmental conditions;

• to place more emphasis on prevention through conservation rather than on curative measures, inter alia by preserving the country's unique and diverse cultural and natural heritage;

• to incorporate an environmental dimension in project planning and implementation, inter alia by determining the implication of the proposed projects and the costs of the required environmental mitigation measures through the conduct of Environmental Impact Assessment Studies; and

• to promote greater co-operation and increased co-ordination among relevant Federal and State authorities as well as among ASEAN Governments.

2.    Environmental Requirements

Under the Environmental Quality Act, 1974 and the Regulations thereunder, industrial activities are required to obtain the approvals from the Director General, Department of Environment prior to project implementation.

Environmental Impact Assessment (EIA) is required for activities prescribed under the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order, 1987.  Those industrial activities that are not subject to the mandatory EIA requirements are nevertheless subject to various regulations under the Environmental Quality Act, 1974 (EQA).  The standing regulations call for project siting evaluation, pollution control, monitoring and self enforcement.  

2.1    Environmental Impact Assessment Reports (for prescribed activities)

Some selected activities are:

2.1.1    Agriculture

Land development schemes covering an area of 500 hectares or more to bring forest land into agricultural production.
 

Agricultural programmes necessitating the resettlement of 100 families or more.
 

Development of agricultural estates covering an area of 500 hectares or more involving changes in type of agricultural use.

2.1.2    Fisheries  

• Construction of fishing harbours
   
• Harbour expansion involving an increase of 50% or more in fish landing capacity per annum.
   
• Land based agriculture projects accompanied by the clearing of mangrove swamp forests covering an area of 50 hectares or more.

2.1.3    Industry  

• Chemical
  
  Where production capacity of each product or of combined products is greater than 100 tonnes/day.
   
• Petrochemicals
  
  All sizes
   
• Non-ferrous
  
  Primary smelting:

  Aluminium    :    all sizes
  Copper        :    all sizes
  Others          :    producing 50 tonnes/day and above of product

• Non-metallic

Cement    :    for clinker through-put of 30 tonnes/hour and above

Lime        :    100 tonnes/day and above burnt lime rotary kiln
                     or 50 tonnes/day and above vertical kiln.

• Iron and Steel

-    Requirement of iron ore as raw materials for production greater than 100 tonnes/day; or

-    Using scrap iron as raw materials for production greater than 200 tonnes/day.
 

• Shipyards

Dead Weight Tonnage greater than 5000 tonnes.  

• Pulp and Paper Industry

Production capacity greater than 50 tonnes/day.  

2.1.4    Petroleum  

• Oil and gas fields development;
  
• Construction of off-shore and on-shore pipelines in excess of 50 kilometres in length;
  
• Construction of oil and gas separation, processing, handling and storage facilities;
  
• Construction of oil refineries; and
  
• Construction of product depots for the storage of petrol, gas or diesel (excluding service stations) which are located within three kilometres of any commercial, industrial or residential areas and which have a combined storage capacity of 60,000 barrels or more.

2.1.5    Resort and Recreational Development

• Construction of coastal resort facilities or hotels with more than 80 rooms;
  
• Hill station resort or hotel development covering an area of 50 hectares or more;
  
• Development of tourist or recreational facilities in national parks; and
  
• Development of tourist or recreational facilities on islands in surrounding waters which are gazetted as national marine parks.

2.1.6    Waste Treatment and Disposal

Toxic and Hazardous Waste

• Construction of incineration plant;
  
• Construction of recovery plant (off-site);
  
• Construction of wastewater treatment plant (off-site);
  
• Construction of secure landfill facility; and
  
• Construction of storage facility (off-site).

2.2    Site suitability Evaluation (for non-prescribed activities)

In considering the suitability, the site is evaluated in terms of its compatibility with respect to the gazetted structure/local plans, surrounding landuse, provision of set-backs or buffer zones, the capacity of the area to receive additional pollution load, and waste disposal requirements.

Details on the appropriate buffer zone with respect to specific category of industry can be obtained from the Department of Environment's (DOE) brochure, "Guidelines for the Siting and Zoning of Industries".

For potentially hazardous* type of industries, the project proponent may be required to submit a Risk Analysis to the DOE as part of the site consideration.  

*    A hazardous industry is defined as any industry or installation which has the potential for causing injury, death and damage to property or the environment.  

2.3    Written Permission to Construct

Any person intending to carry out activities as listed below shall obtain prior written permission from the Director General of Environment:  

• New installation near dwelling area as detailed out in Regulation 4 and First Schedule of the Environmental Quality (Clean Air) Regulations, 1978;
  
• Construction of any building or carrying out of any work that may result in a new source of effluent or discharge as stipulated under Regulation 4, Environmetal Quality (Sewerage and Industrial Effluents) Regulations, 1979.
  
• A factory which is categorized as prescribed premises namely:

(a)    The crude palm oil mill;
(b)    The raw natural rubber processing mill; and
(c)    The treatment and disposal facilities of scheduled wastes.  

2.4    Written Approval

For any erection (including incinerators), installation, resiting or alteration of fuel burning equipment that is rated to consume;

• pulverized fuel or solid fuel at 30 kg or more per hour; or
  
• liquid or gaseous fuel at 15 kg or more per hour;

an applicant shall obtain prior 'written approval' from the Director General as stipulated in Regulations 36 and 38, Environmental Quality (Clean Air) Regulations, 1978.

2.5    Licence to Occupy

A licence is required to occupy and operate prescribed premises.  Applications shall be made after obtaining written permission and written approval.  Licensing fees will be charged for every licence issued for palm oil and natural rubber processing mills.

3.    Incentives for the Storage, Treatment
       and Disposal of Toxic and Hazardous Wastes

Please refer to 12 in Chapter 3 (Incentives for Investment)

For further details on environmental protection requirements, please contact the Department of Environment.