US-Asean trade group calls for regional unity on managing waste

US-Asean trade group calls for regional unity on managing waste

The US-Asean Business Council says Southeast Asia should be aligned on core principles to bolster investor confidence to invest in local recycling infrastructure.

Hiroyuki Industries in Johor is Malaysia’s first ‘bottle-to-bottle’ recycler and a key partner in USABC’s efforts to advance a circular economy in the region. (US-Asean Business Council pic)
PETALING JAYA:
The US-Asean Business Council (USABC) has called for greater regional alignment when it comes to waste management to expedite Southeast Asia’s transition to a circular economy which reduces waste and conserves resources.

The trade group has been partnering with private and public sectors to develop extended producer responsibility (EPR) systems across Asean, designed to manage the full lifecycle of packaging, from production to recycling, in a way that is investment-friendly, inclusive, and environmentally sustainable.

However, it has faced roadblocks in the region’s vast informal waste sector, with limited institutional support and funding limitations. The lack of reliable waste data also disrupts setting targets needed to gauge the impact of efforts.

USABC’s chief Indonesia representative Nugraheni Utami said clear, government-mandated and industry-run EPR systems were essential to advance circular economy solutions across the region.

She added that Asean should be aligned on core principles and backed by transparent reporting to create a level playing field for industry players while bolstering investor confidence to invest in local recycling infrastructure.

Tina Jamaluddin, chief country representative for Malaysia at USABC, said Malaysia’s EPR framework was an opportunity to build a practical, multi-material system that drives environmental impact and investment certainty.

“Mutually recognised principles across Asean, paired with national flexibility, help reduce fragmentation and support efficient implementation of EPR systems across the region,” she said in a press release.

The council’s efforts have taken shape in the form of key partners like Coca Cola, which is pushing for well-structured EPR systems in Malaysia and Indonesia, and Hiroyuki Industries (M) Sdn Bhd.

Hiroyuki Industries Malaysia founder and managing director Nakata Hiroyuki said the company based in Johor was the country’s first “bottle-to-bottle” recycler.

“Our investment in advanced recycling technology and our partnerships with leading brands align with our commitment to creating a sustainable, circular economy for plastics in Malaysia, which benefits both the local environment and economy,” he said.

USABC said Southeast Asia was actively building a practical, investment-focused roadmap towards establishing a circular economy via collaboration between industry leaders, governments and local innovators.

“This collective action is the key to overcoming obstacles and transforming the lifecycle of packaging for a more sustainable and inclusive Southeast Asia, pioneering industry-led transformation towards efficient material collection, recycling, and reuse,” the council said.

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