Saidatu Akhma (left) highlights the government’s efforts to establish a circular economy through strategic policies and initiatives, aligning with global sustainability goals, combating climate change, and promoting resource efficiency. Pictured with her are (from second left) KPKT minister Nga Kor Ming, secretary-general Datuk M Noor Azman Taib and deputy secretary-general (management and development) Muhammad Razman Abu Samah. — ART CHEN/The Star
KPKT is addressing the urgency of corporate accountability in sustainability
IN the face of rising environmental challenges and the urgent need to decarbonise, there is increasing focus on holding companies accountable for their greenhouse gas (GHG) emissions and their ability to adopt circular economy practices.
While business-driven economic activity is a major source of GHG, it is also within the private sector that innovative solutions are emerging to prevent, mitigate, and adapt to the adverse impacts of climate change.
Businesses, therefore, not only bear responsibility for emissions but also possess the potential to lead the way in developing and implementing strategies that protect the planet and its people.
Recognising this, the Housing and Local Government Ministry (KPKT) is implementing measures to ensure businesses go beyond making commitments and take concrete actions to achieve their sustainability goals.
KPKT deputy secretary-general (sustainability planning and environment) Datuk Saidatu Akhma Hassan says: “The government is building the foundation for a circular economy that aligns with global sustainability goals, addresses climate change directly, and paves the way for a new era of resource efficiency through a series of strategic policies, initiatives, and forward-thinking blueprints.
Tackling barriers
Despite growing concerns over climate change, resource depletion, and social inequality, holding businesses accountable for sustainability remains challenging. Barriers such as greenwashing, complex supply chains, lack of consumer awareness and demand as well as a short-term profit focus complicate progress.
Overcoming these obstacles is crucial to ensuring businesses can meet their sustainability goals and contribute to a more sustainable future. The primary challenge KPKT faces is the comprehensive implementation of the circular economy across all states in Malaysia.
Saidatu Akhma shares that currently, only seven states have adopted Act 672, which is also known as Solid Waste Management and Public Cleansing Act 2007. The Act is one of Malaysia’s key legislative frameworks, designed to address the shortcomings of waste management laws across Peninsular Malaysia and the Federal Territories, ensuring better coordination, enforcement and sustainability.
“To achieve a nationwide transition, a thorough strategy and action plan is needed to ensure coordinated efforts among all stakeholders, including state governments, local councils, businesses, industry players, academics, associations, and non-governmental organisations.
“KPKT’s recently launched Circular Economy Blueprint for Solid Waste in Malaysia (2025-2035) provides a strategic framework to standardise legislation by harmonising existing policies and guiding the development of a new Act that ultimately unifies the circular economy in Malaysia,” says Saidatu Akhma.
Raising the level of awareness and changing the mindset of both consumers and businesses towards sustainable practices are also huge challenges to the ministry. Additionally, the infrastructure for recycling and waste management needs further development and improvement. There is also a need for more robust regulatory frameworks to ensure compliance and promote innovation in circular economy practices.
“Malaysia is moving towards a more sustainable future by integrating circular economy principles with its decarbonisation agenda. Through strategic policies, financial incentives, public-private partnerships, and technological innovation, the country aims to drive economic growth while reducing its environmental footprint,” she says.
Saidatu Akhma adds that the government’s holistic approach to sustainability positions Malaysia as a forward-thinking leader in both circular economy and climate action.
Enforcing answerability
Improved recycling and circularity procedures are identified as key aspects for the sustainable rollout of renewable energy sources, batteries, and other transformative technologies.
According to studies, a climate neutral economy is going to rely heavily on a wide range of raw materials that must be sourced, processed and recycled in a way that minimises the ecological impact, emissions and waste produced by businesses.
“KPKT is carrying out key measures through the Circular Economy Blueprint for Solid Waste in Malaysia (2025-2035) to hold companies accountable for their circular economy commitment,” says Saidatu Akhma.
These measures include:
> Regulatory frameworks and legislation: Governments can enforce regulations to promote circular economy practices and reduce carbon emissions, such as mandatory recycling, waste reduction laws, carbon quotas, and extended producer responsibility (EPR) schemes. Clear legal frameworks ensure companies comply with environmental standards, supporting the goals of Strategic Pillar 1 – Governance and Legislation.
> Transparency and reporting requirements: Companies can be mandated to publicly report their environmental performance, including progress on circular economy initiatives and carbon reduction. Since 2016, ESG reporting has been compulsory for listed companies in Malaysia, regulated by the Securities Commission to encourage sustainability practices. This is in line with Strategic Pillar 5 – Market Creation.
> Incentives and penalties: Governments can incentivise companies meeting circular economy and decarbonisation goals with rewards, tax breaks, or subsidies, while imposing fines or penalties on those that fail to comply. This “carrot-and-stick” approach encourages accountability. This is in line with Strategic Pillar 5 – Market Creation.
> Public procurement policies: Governments can use procurement policies to drive circular economy adoption by prioritising contracts with companies that meet high sustainability standards, including waste reduction, resource efficiency, and carbon emissions criteria. This is in line with Strategic Pillar 2 – Procedure and Guideline.
> Sustainability certifications and labels: Governments can create certification programmes or sustainability labels to recognise companies that meet circular economy and decarbonisation criteria, encouraging consumers and investors to choose environmentally responsible businesses. This is in line with Strategic Pillar 2 – Guideline and Procedure, CEI 8 - Introduce Zero-Waste-to-Landfill Certificates.
> Public awareness and consumer pressure: Governments can run public awareness campaigns to educate consumers on the environmental impact of their purchasing choices, drive demand for sustainable products and create market pressure on companies to meet circular economy and decarbonisation commitments. This is in line with Strategic Pillar 5 – Market Creation, CEI 20 - Empowering Industry Driven Communication, Education and Public Awareness (CEPA) Programme.
Leveraging partnerships
Leveraging public-private partnerships (PPPs) is crucial for advancing the circular economy, as these partnerships enable the pooling of resources, innovation, and expertise from both sectors. These collaborations can drive large-scale initiatives by combining government policies with private sector efficiency, fostering innovation, and ensuring that sustainability goals are met.
PPPs help share risks, scale circular practices, and create jobs, while facilitating the development of supportive policies and regulations. Ultimately, these partnerships are crucial for making the transition to a circular economy more efficient, widespread, and economically viable.
With that in mind, Saidatu Akhma says the government is managing stakeholder engagement and collaboration in transitioning to a circular economy with the blueprint as a guide.
“It (the blueprint) stresses that successful implementation requires active participation from government agencies, the private sector, NGOs, and the public.
Ongoing cooperation between the public and private sectors is crucial - without it, progress will be hindered, success will be unattainable.
“To foster this collaboration, the blueprint will leverage on attractive incentives tailored to support circular business models, encouraging a symbiotic relationship between the public and private sectors.
“This includes the development of waste eco-parks, sanitary landfills, material recovery facilities, and other technological innovations that the private sector can invest in. The aim is to create a holistic transformation of the entire ecosystem and business mechanisms,” she shares.
This approach aligns with the blueprint’s Strategic Pillars 3 (Digitalisation and Technology), 4 (Infrastructure and Facilities), and 5 (Market Creation), which collectively aim to support the infrastructure, technology, and market conditions necessary for a successful circular economy.
She adds that a strong partnership between the public and private sectors ensures the alignment of resources, technology, policy, and finance to support the transition to a low-carbon economy, accelerating efforts to meet decarbonisation targets.
In summary, success in circular economy and decarbonisation relies on ongoing strategic collaboration with diverse stakeholders.
