Skip to content

Malaysia’s palm oil industry leads the way in circular economy innovation

Cheap plastics and fragmented policies slow progress, but bold businesses are proving waste can be worth more than gold. Can Malaysia’s green gamble pay off?

This is the picture of a place where we have some buildings to which there are some windows, green...
This is the picture of a place where we have some buildings to which there are some windows, green color clothes and also we can see some shops, boards and some trees and plants around.

Malaysia’s palm oil industry leads the way in circular economy innovation

Malaysia is driving a shift from a traditional 'take-make-dispose' economy towards a circular model, aiming to reduce waste and reuse resources. Despite high upfront costs and entrenched habits, some industries—like palm oil—are already transforming waste into valuable products. The country's reliance on landfills and slow progress in waste separation highlight persistent challenges. A culture of convenience, fueled by cheap single-use plastics, makes the transition harder. Meanwhile, recycled materials often come at a higher cost due to subsidies for virgin resources.

Green initiatives have struggled with fragmented policies, as different ministries lead efforts without clear coordination. Yet, global supply chain demands and local advocacy are pushing Malaysian businesses to adopt Environmental, Social, and Governance (ESG) principles. The government has also set ambitious targets, including 40% renewable energy capacity by 2035.

To support this shift, Malaysia launched the Green Technology Master Plan (2017–2030) and the National Policy on Industry 4.0. These plans link green growth with technological upgrades, aiming to modernize industries while cutting waste. The palm oil sector, for instance, now converts waste into bio-compost and bio-pellets, demonstrating how circular principles can work in practice.

Small and medium enterprises still find circular models expensive to adopt. But with strong policy signals and growing investor interest, Malaysia's push for a circular economy is gathering momentum. The success of early adopters, such as the palm oil industry, could encourage wider change across other sectors.

Read also:

Latest