|Environmental Technologies Industries
|Malaysia Environmental Export Market Plan|
|Chapter 6 - Hazardous Waste Management|
Environmental Laws and Regulations Affecting Hazardous Waste Management
Tax Incentives for Safe Disposal
Pioneer status incentives for five years, available to companies that are principally engaged in an integrated operation of the storage, treatment, and disposal of toxic and hazardous waste.
Companies that generate toxic and hazardous waste and intend to set up facilities to store, treat, and dispose of these wastes, either on-site or off-site, are eligible for a special capital allowance. This allowance is at an initial rate of 40 percent and an annual rate of 20 percent for all capital expenditure incurred in waste treatment and disposal.
The government will also extend the current import duty and sales tax exemption scheme for machinery, equipment, raw materials, and components to these companies.
Hazardous Waste Facility Operational in 1998
Of all major environmental projects in the country, the Integrated Waste Treatment Facility, to be built at Bukit Nanas, near Port Dickson, has had the most trouble. The project was awarded in 1992 to the Danish-Malaysian group Kualiti Alam Sdn. Bhd. The Danish partners are Danish Wastetreatment Services A/S and the government-owned Industrialization Fund for Developing Countries, with Chemcontrol A/S as the hazardous waste consultants. The Malaysian partners are United Engineers Malaysia (UE Construction Sdn. Bhd.) and Arab-Malaysian Development Bhd.
The main stumbling blocks in the project have been site location, land prices, resistance from industrial users to pay the anticipated tariffs, and disagreements over projected waste volume. Evidently, the government was not prepared to guarantee the volume of waste that the treatment center will receive, and there are concerns about the high rates. After innumerable delays caused by unresolved contractual problems and requests for government loans, the project finally began site work in mid-1995 on renegotiated terms, including an extension of the concession's original exclusive right from 10 to 15 years.
The plant will be Malaysia's first integrated hazardous waste management facility, based on the Danish Kommunikemi treatment system. According to initial estimates, the plant will cost a total of RM350 million ($106 million at RM3.3 to $1) and accept about 80,000 tons of waste annually. Annual capacity will include incineration (30,000 tons), physical-chemical treatment plant (10,000 tons), solidification (30,000 tons) and secure landfill (10,000 tons). In addition to the direct landfill, the plant will deposit its own treatment residues on site.
The facility, to be managed by Kualiti Alam, received its initial load on October 8, 1996. The first load was nine tons of metal hydroxide sludge from an electroplating plant in the Teluk Panglima Garang Industrial Estate in Selangor. The company will be making arrangements with other customers for selective collection of scheduled wastes. At present, however, the group will accept only wastes that can be directly disposed of in its secured landfill for storage. The plant is in its final phase of construction.