Malaysia’s tyre recycling sector is at a crossroads, balancing environmental urgency with economic potential. As one of the world’s largest producers of rubber products, the country generates vast quantities of waste tyres annually. While pyrolysis technology offers a sustainable solution to convert these tyres into valuable resources like fuel oil, carbon black, and steel, illegal operations and regulatory gaps have marred its progress.
Despite a 2012 white paper proposing an Extended Producer Responsibility (EPR) scheme, Malaysia’s tyre recycling industry remains largely unregulated. Illegal pyrolysis plants have proliferated, often operating in palm oil plantations or industrial areas with minimal oversight. A notable case in 2022 saw authorities in Johor seize 300 tons of waste tyres at an illegal facility, where operators used substandard equipment to extract oil, dumping toxic byproducts like pyrolysis char into waterways. Such practices not only violate environmental laws but also endanger public health—incidents like the 2019 Sg Kim Kim pollution, linked to pyrolysis waste, hospitalized hundreds and forced school closures.
Moreover, many illegal plants rely on cheap Chinese-made pyrolysis machines, which lack proper emission controls, releasing harmful gases like benzene and hydrogen chloride. These operations often employ undocumented workers, exacerbating social and legal issues.
Amid these challenges, legitimate pyrolysis plant in Malaysia are emerging as a viable solution. International firms like Beston Group have installed advanced pyrolysis systems in Malaysia, capable of processing 1-30 tons of waste tyres daily. These plants use enclosed furnaces and purification systems to minimize pollution, producing marketable fuels and byproducts.
For instance, a 10-tonne-per-day (TPD) plant can generate up to 4.5 TPD of fuel oil and 3 TPD of carbon black, which can be sold to industries like cement and steel. Government incentives, such as tax exemptions and subsidies for eco-friendly recycling, further boost the economic viability of these projects.
Malaysia’s import regulations for waste tyres are stringent but often circumvented. Under the Customs (Prohibition of Imports) Order, tyres must be imported for recycling or energy recovery, with strict quality checks by SIRIM Berhad. However, a thriving illegal trade persists, with Western countries exporting tyres to Malaysia and other Asian nations to avoid costly domestic recycling. This influx overwhelms local infrastructure, leading to improper disposal and environmental degradation.
To address this, the government has stepped up enforcement, targeting unlicensed operators and collaborating with agencies like the Immigration Department and Ministry of Health to tackle broader violations. Still, enforcement remains uneven, and many operators exploit legal loopholes.
Globally, the demand for recycled carbon black (rCB) is rising, driven by industries seeking sustainable alternatives to virgin materials. Europe’s growing adoption of pyrolysis technology underscores the potential for international collaboration and knowledge-sharing.
Malaysia’s journey toward sustainable tyre recycling hinges on robust regulation, technological innovation, and global cooperation. While illegal operations and import pressures pose immediate threats, legitimate pyrolysis plants—backed by government support and international expertise—offer a blueprint for a cleaner, more profitable future. As the nation navigates these challenges, it has the opportunity to become a regional leader in circular waste management, transforming environmental liabilities into economic assets.
Interested in learning more about Malaysia’s pyrolysis landscape? Share your thoughts or experiences in the comments below!
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