Logo

Environmental Management

1 Policy

To promote environmentally sound and sustainable development, the Malaysian government has established the legal and institutional framework for environmental protection. Investors are encouraged to consider the environmental factors during the early stages of their project planning. Aspects of pollution control include possible modifications in the process line to minimise waste generation, seeing pollution prevention as part of the production process, and focusing on recycling options including self-regulation culture.

Environmental Management Policy

National Policy on the Environment (DASN) has been established for continuous economic, social and cultural progress and enhancement of the quality of life of Malaysians through environmentally sound and sustainable development. The objectives of DASN are to achieve:

i.   A clean environment, safe, healthy and productive environment for present and future generations;

ii.  Conservation of country’s unique and diverse cultural and natural heritage with effective participation by all sectors of society; and 

iii.  Sustainable lifestyles and patterns of consumption and production.

There are eight (8) principles listed under DASN to harmonize economic development goals with environmental imperatives:

-   Stewardship of the Environment

-   Conservation of Nature’s Vitality and Diversity

-   Continuous Improvement in the Quality of the Environment

-   Sustainable Use of Natural Resources

-   Integrated Decision-Making

-   Role of the Private Sector

-   Commitment and Accountability

-   Active Participation in the International Community

DASN seeks to integrate environmental considerations into development activities and in all related decision-making processes, to foster long-term economic growth and human development, and to protect and enhance the environment. It complements and enhances the environmental dimensions of other national policies, such as those on forestry and industry, and takes cognizance of international conventions on global concerns.

2 Environmental Requirements

The Environmental Quality Act 1974, and its accompanying regulations call for environmental impact assessment, site suitability assessment, pollution control assessment, monitoring and self-regulation in compliance. Industrial activities are required to obtain the following approvals from the Director-General of Environmental Quality prior to project implementation:

i.   Environmental impact assessment for Prescribed Activities;

ii.  Written notification or permission to construct;

iii. Written approval for installation of incinerator, fuel burning equipment and chimney;

iv.  Licence to occupy and operate prescribed premises and prescribed conveyances.

Environmental Impact Assessment for Prescribed Activities

An investor should first of all check whether an environmental impact assessment (EIA) is required for his proposed industrial activities. The following are activities prescribed under the Environmental Quality (Prescribed Activities) (Environmental Impact Assessment) Order 2015, which require an EIA before project approval:

FIRST SCHEDULE 

1.   Agriculture 

i.    Land development schemes covering an area of 20 hectares or more but less than 500 hectares to bring forest into agricultural production.

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

2.   Aerodrome: 

Expansion of an aerodrome involving a runway of 1,000 metres or longer.

3.   Drainage and Irrigation: 

i.    Construction of man-made lakes and enlargement of artificial lakes with surface areas of 100 hectares or more

ii.   Irrigation schemes covering an area of 500 hectares or more. 

4.   Fisheries: 

Land based aquaculture projects accompanied by clearing of mangrove forest, peat swamp forest or fresh water swamp forest covering an area of 20 hectares or more but less than 50 hectares. 

5.   Forestry: 

i.    Conversion of forest at 300 meters or more above mean sea level to other land use covering an area of 20 hectares or more but less than 100 hectares. 

ii.   Logging, or cutting or taking of timber for the purpose of conversion from forest to other land use covering an area of 100 hectares or more but less than 500 hectares. 

iii.   Logging, or cutting or taking of timber from forest at less than 300 meters above mean sea level covering an area of 100 hectares or more, outside permanent reserved forest.

iv.   Conversion of an area of — 

(a)  mangrove forest; 

(b)  peat swamp forest; or

(c)  fresh water swamp forest, 

for industrial, housing or agricultural use covering an area of 20 hectares or more but less than 50 hectares.

v.   Development of planted forest covering an area of 100 hectares or more but less than 500 hectares. 

6.   Industry: 

i.    Chemical: 

Production capacity of each product or combined products of 100 tonnes or more per day.

ii.   Cement: 

Cement grinding plant with cement production capacity of 200 tonnes or more per day.

iii.  Lime: 

Production of 100 tonnes or more per day of burnt lime using rotary kiln or 50 tonnes or more per day of burnt lime using vertical kiln.

iv.  Petrochemicals: 

Production capacity of each product or combined product of less than 50 tonnes per day.

v.   Shipyards: 

Dead weight tonnage of 5,000 tonnes or more.

7.   Land Reclamation: 

Coastal reclamation or land reclamation along river banks involving an area of less than 50 hectares.

8.   Mining: 

i.    Ore processing outside mineral tenement area, including concentrating of aluminium, copper, gold, iron, tantalum or rare earth element. 

ii.   Sand mining on land or river or in coastal area or in territorial waters not exceeding 3 nautial miles measured from the low-water line, involving an area of 20 hectares or more.

iii.   Sand mining in continental shelf area. 

9.   Petroleum: 

i.    Development of — 

      (a)    oil field; 

      (b)    gas field; or 

      (c)    oil and gas field. 

ii.   Construction of 30 kilometres or more in length of — 

      (a)    off-shore pipelines; 

      (b)    on-shore pipelines; or 

      (c)    off-shore pipelines and on-shore pipelines. 

iii.   Construction of — 

       (a)   oil separation, processing, handling and storage facilities; 

       (b)   gas separation, processing, handling and storage facilities; or 

       (c)   oil and gas separation, processing, handling and storage                          facilities. 

iv.   Construction of product depot for the storage of petrol, gas or diesel which has the combined storage capacity of 60,000 barrels or more (excluding service station) within 3 kilometres from any commercial, industrial or residential area.

10.  Ports:

i.     Expansion of port involving an increase of 50 percent or more in handling capacity per annum. 

ii.    Expansion of fishing port involving an increase of 50 percent or more in fish landing capacity per annum. 

11.  Power Generation and Transmission: 

i.     Construction of steam generated power station using fossil fuels (other than coal) and having the capacity of 10 megawatts or more, with or without transmission line. 

ii.    Construction of combined cycle power station, with or without transmission line. 

iii.   Construction of transmission line in environmentally sensitive area.

12.  Development in Coastal and Hill Area: 

i.     Construction of building or facilities with 80 rooms or more in coastal area. 

ii.    Construction of hill-station resort or hotel at 300 meters or more above mean sea level covering an area of 20 hectares or more. 

13.  Development in Slope Area

Development or land clearing less than 50 per cent of an area with slope greater than or equal to 250 but less than 350.

14.  Waste Treatment and Disposal: 

i.     Scheduled waste: 

       (a)  Construction of recovery plant (off-site). 

       (b)  Construction of wastewater treatment plant (off-site). 

       (c)  Construction of storage facility (off-site). 

ii.    Solid waste: 

       (a)  Construction of composting plant. 

       (b)  Construction of recovery plant or recycling plant. 

iii.   Sewage: 

       (a)  Construction of sewage treatment plant with 20,000                                  population equivalent or more. 

       (b)  Sludge treatment facilities. 

15.  Dredging: 

i.     Capital dredging. 

ii.    Disposal of waste dredged materials. 

16.  Housing

Housing development covering an area of 50 hectares or more.

17Industrial Estate Development: 

Development of industrial estate covering an area of 20 hectares or more.

18New Township: 

Construction of new township consisting of 2,000 housing accommodation units or more or covering an area of 100 hectares or more.

19.  Quarry: 

Quarrying of rock material.

20.  Road

i.     Construction of expressways. 

ii.    Construction of highways. 

iii.   Construction of road, tunnel or bridge traversing or adjacent or near to environmentally sensitive areas. 

 21. Water Supply: 

Groundwater development for industrial, agricultural or urban water supply of 4,500 cubic metres or more per day.

SECOND SCHEDULE 

1.  Agriculture:

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

ii.  New pig farming area of 2,000 or more standing pig population. 

2. Aerodrome: 

i.  Construction of a new aerodrome involving a runway of 1,000 metres or longer.

ii. Construction of aerodrome in or adjacent or near to any state park, national park, national marine park, island surrounding marine park or environmentally sensitive area. 

3. Drainage and Irrigation

i.    Construction of man-made lakes and artificial enlargement of lakes with surface areas of 50 hectares or more in or adjacent or near to environmentally sensitive area. 

ii.   Any drainage of wetland, wild-life habitat or dry inland forest covering an area of 20 hectares or more. 

4. Fisheries: 

Land based aquaculture projects accompanied by clearing of mangrove forest, peat swamp forest or fresh water swamp forest covering an area of 50 hectares or more.

5. Forestry: 

i.  Conversion of forest at 300 meters or more above mean sea level to other land use covering an area of 100 hectares or more.

ii. Logging or conversion of forest to other land use within — 

    (a)  a catchment area of reservoirs used for municipal water supply, irrigation or hydro-power; 

    (b)  an area adjacent or near to any state park, national park or national marine park; 

    (c)  any state park, national park or national marine park; or 

    (d)  an area gazetted as water catchment forest under the National Forestry Act 1984 [Act 313].

iii.  Logging, or cutting or taking of timber from forest at 300 meters or more above mean sea level covering an area of 100 hectares or more, outside permanent reserved forest. 

iv.  Logging, or cutting or taking of timber covering an area of 500 hectares or more. 

v.   Development of planted forest covering an area of 500 hectares or more. 

vi.  Conversion of an area of— 

      (a)   mangrove forest; 

      (b)   peat swamp forest; or 

      (c)   fresh water swamp forest, 

for industrial, housing or agricultural use covering an area of 50 hectares or more

vii. Clearing of mangrove forest, peat swamp forest or fresh water swamp forest on islands adjacent to any national marine park. 

6.    Industry:

i.     Non-ferrous:

(a)   Primary smelting aluminium (all sizes). 

(b)   Primary smelting copper (all sizes). 

(c)   Primary smelting other non-ferrous (producing 50 tonnes product or more per day). 

ii.    Cement: 

With clinker production capacity of 30 tonnes or more per hour.

iii.   Iron and steel: 

(a)  Using iron ore as raw materials for production of 100 tonnes or more per day. 

(b)  Using scrap iron as raw materials for production of 200 tonnes or more per day. 

iv.   Petrochemicals: 

Production capacity of each product or combined product of 50 tonnes or more per day.

v.    Pulp, or pulp and paper: 

Production capacity of 50 tonnes or more per day.

vi.   Recycle paper industry: 

Production capacity of 50 tonnes or more per day.

7.   Land Reclamation: 

i.    Coastal reclamation or land reclamation along river banks involving an area of 50 hectares or more. 

ii.   Coastal reclamation or land reclamation along river banks within or adjacent or near to environmentally sensitive areas. 

iii.  Reclamation for man-made island.

8.   Mining: 

i.    Mining of minerals in new areas involving large scale operation. 

ii.   Mining of minerals within or adjacent or near to environmentally sensitive area. 

9.   Petroleum: 

i.    Construction of oil refineries. 

ii.   Construction of gas refineries. 

iii.  Construction of oil and gas refineries. 

10. Ports: 

i.    Construction of a new port. 

ii.   Construction of a new fishing port. 

11. Power Generation and Transmission

i.    Construction of coal fired power station and having the capacity of 10 megawatts or more with or without transmission line. 

ii.   Construction of nuclear-fuel power station with or without transmission line. 

12. Development in Coastal Area, National Park and State Park: 

Development of tourist facilities, recreational facilities or other facilities -

i.    in any national park or state park; or 

ii.   on any island in surrounding waters which has been gazetted as a national marine park or marine reserve under the Fisheries Act 1985 [Act 317]. 

13. Development in Slope Area: 

i.    Development or land clearing of 50 per cent or more of an area with slope greater than or equal to 250 but lesser than 350

ii.   Construction of road, tunnel or bridge traversing an area with slope greater than or equal to 350.

14. Waste Treatment and Disposal: 

i.    Scheduled waste: 

(a)  Construction of thermal treatment plant. 

(b)  Construction of off-site recovery plant for lead acid battery wastes. 

(c)  Construction of off-site recovery plant or treatment facility that generates significant amount of wastewater which is located at the upstream of public water supply intake. 

(d)  Construction of secure landfill facility. 

ii.    Solid waste: 

(a)  Construction of thermal treatment plant. 

(b)  Construction of sanitary landfill facility. 

(c)  Construction of transfer station. 

15. Construction of Dam:

i.    Construction of dam or impounding reservoir for the purpose of irrigation, flood mitigation, control of siltation, recreational, water supply or any other reason with a surface area of 100 hectares or more. 

ii.  Dam and hydro-electric power scheme with either or both of the following: 

(a) dam of 15 metres or more in height and ancillary structures covering a total area of 40 hectares or more; 

(b)  reservoir with a surface area of 100 hectares or more. 

16. Transportation

i.    Construction of new routes or branch line for a mass rapid transport project. 

ii.   Construction of new railway route or railway branch lines. 

17. Radioactive Materials and Radioactives Waste:

Any activity specified in this schedule and the First Schedule using radioactive materials and generating radioactive wastes.

2 stages of EIA Report Submission:

i.    Submission of TOR for endorsement.

ii.   Submission of EIA Report for Approval.

Both documents must be prepared by qualified person (Registered EIA Consultant with DOE).

Site Suitability Assessment

Before an industrial project is planned, care must be taken in ensuring the proposed site location is suitable for its purpose and any environmental concerns must be addressed either by design and/or planning. Avoidance of conflict(s) through proper siting, and more importantly, with consideration of environmental controls and pollution prevention is important for long-term sustainability of an industrial activity. This would help to reduce unnecessary investment costs that may be required especially on pollution control and to improve public perception of the project or activity.

The ‘Environmental Essentials for the Siting of Industries in Malaysia’ (EESIM) 2017, published by the Department of Environment Malaysia serves as a guidance document for Project Developers, when selecting a suitable site for the setting up of a manufacturing or industrial facility. Proposed industrial activity shall be sited within an industrial estate and be developed and managed with environmentally- sound control measures. In considering the suitability of the proposed site, the site of interest is evaluated in terms of its compatibility with respect to the gazetted Structure and Local plans, surrounding land use, provision of set-backs or buffer zones set by PLANMalaysia (Jabatan Perancangan Bandar Dan Desa), the capacity of the area to receive additional pollution load and waste disposal requirements.

3 Incentives for Environmental Management
Please refer to Chapter 8 for information on "Incentives for Environmental Management". Further details on environmental management requirements can be obtained from the Department of Environment or visit http://www.doe.gov.my
Prev

Banking, Finance & Exchange Administration

Workforce for Industry

Next

Intellectual Property Protection

Infrastructure Support

Last Updated : Friday 25th September 2020