Tracking illegal e-waste in Malaysia from seizure to smelting

ONCE electronic waste enters Malaysia outside proper declaration channels, it moves beyond the ports into an underground processing chain operating outside the licensed system.

Former Department of Environment (DOE) Water and Marine Division director Jalaluddin Ismail said shipments are sometimes falsely declared under inaccurate documentation, with transportation packages and paperwork that do not reflect their actual contents.

When such consignments bypass port controls, they may be diverted to illegal factories instead of licensed facilities monitored by the DOE.

“These illegal factories are reportedly operated with foreign expertise, technology and workers, while local involvement may be limited to land ownership — whether by private individuals or state-linked entities. The technical operators and workforce are often brought in from abroad,” he said, offering Sinar Daily an environmental perspective on the e-waste issue.

Jalaluddin, who had also served as DOE director for Selangor, said illegal recycling in the past was conducted discreetly in jungles or rubber plantations, using rudimentary techniques such as electrolysis to extract valuable heavy metals. Today, similar activities may take place in industrial areas, giving the appearance of legitimate operations despite lacking licences.

“After materials are smelted or processed, where are the residual wastes disposed of? Are they dumped into rivers or abandoned land?” he asked.

He noted that Malaysia does not have a remediation mechanism comparable in scale to the United States’ Superfund programme, which addresses large-scale contaminated sites. As processing never achieves 100 per cent recovery, residual waste is inevitably generated. Without proper remediation, there are concerns that rivers and drinking water sources could be affected.

Sustainability and Climate Change Expert Dr Renard Siew said illegal e-waste is typically processed in industrial zones, abandoned warehouses or rural fringes where oversight may lapse.

“While licensed recovery facilities are subject to environmental conditions under the Environmental Quality Act 1974, illegal operations persist due to fragmented monitoring and strong economic incentives tied to valuable metals,” he said.

He added that such operators may evade detection by operating intermittently or relocating quickly, limiting the effectiveness of conventional monitoring mechanisms.

When illegal materials are seized, they are classified as scheduled waste under the Environmental Quality (Scheduled Wastes) Regulations 2005 and directed to licensed treatment, recovery or disposal facilities.

Siew said soil and water sampling conducted near suspected illegal e-waste sites have indicated elevated levels of heavy metals such as lead, cadmium and mercury.

“These findings raise legitimate concerns about chronic exposure risks for nearby communities, particularly children and informal workers, although comprehensive longitudinal public health studies remain limited,” he said.

Under Section 34B of the Environmental Quality Act 1974 (Act 127), placing scheduled waste on land or into Malaysian waters, or allowing its transit without approval from the Director General of Environmental Quality, constitutes an offence punishable by imprisonment, fines or both.

Jalaluddin noted that once waste is diverted to illegal facilities, it falls outside the monitoring framework applied to licensed operators. Public attention, he added, often focuses on the value of seizures during raids, while less emphasis is placed on subsequent clean-up and residue management.

By the time enforcement action is taken, some materials may already have been dismantled or smelted, leaving contaminated by-products that require formal disposal under scheduled waste regulations.

Environmental and wildlife consultant Amlir Ayat called for greater use of digital technology to track the movement of e-waste and strengthen public reporting mechanisms.

“The DOE operates an e-aduan portal for complaints under the Environmental Quality Act (Act 127), as well as email, hotline and social media channels. Internationally, the Basel Action Network maintains a complaints portal with whistleblower protection features.

“Locally, non-governmental organisations such as Sahabat Alam Malaysia and the Consumers Association of Penang can also be approached,” he said.

Amlir described the Certificate of Approval (COA) system as one of the government’s most assertive recent measures. Issued by SIRIM QAS International, it requires waste importers to prove they have licensed facilities capable of responsibly processing materials.

Facilities are subject to periodic monitoring and audits. Non-compliance may result in shipment rejections, financial penalties and permanent import bans.