KUALA LUMPUR: Malaysia’s electronic waste (e-waste) industry is on the verge of booming due to increasing demand for electronic devices.
E-waste includes items such as smartphones, computers, laptops, televisions, refrigerators, and other electronic and electrical devices that are no longer in use or have reached the end of their life.
Proper management of e-waste is essential for sustainable development and ensuring a safe environment for future generations. Recycling e-waste responsibly and disposing of it properly can help conserve resources, prevent pollution, reduce greenhouse gas emissions, and promote a circular economy.
Market.us predicts that the e-waste management system market will grow significantly, with a projected size of over US$160.2 billion by 2023. This is a substantial increase from its 2022 value of US$52.6 billion.
Additionally, the market is expected to maintain a compound annual growth rate of 12.1 per cent from 2023 to 2032.
Lak Macros Services Sdn Bhd founder Lingeswaran Subermaniam told Bernama that the e-waste industry in Malaysia is gaining momentum and recognition as the amount of electronic waste produced in the country continues to increase.
“With the rapid advancement of technology and the increasing popularity of electronic gadgets and appliances, Malaysia has seen a significant surge in electronic waste generation,” he said.
Role of tech in e-waste management
Lak Macros has been using two types of technology for sorting and separation as well as data destruction to handle e-waste.
For sorting and separation technologies, the company uses these technologies to separate different types of electronic components and materials from e-waste including shredders, magnetic separators, eddy current separators, and optical sorting machines.
Meanwhile, data destruction technologies are used for electronic devices containing sensitive data, and secure data destruction technologies like data wiping, degaussing, and physical destruction to ensure personal or sensitive information is irretrievably removed.
Lingeswaran said artificial intelligence (AI) analyses historical data to predict patterns in e-waste generation and assist in optimising collection and recycling processes and this helps in better resource allocation and waste management planning.
AI can be applied to enhance the recovery of valuable materials from e-waste. Machine learning algorithms can optimise recycling processes to increase the yield of recovered materials and reduce waste, he said.
“AI can help assess the environmental impact of different e-waste management approaches, enabling policymakers and stakeholders to make more informed decisions about sustainable practices.
“By integrating AI technologies into e-waste management, we can potentially improve efficiency, reduce environmental impact, and contribute to a more sustainable approach to handling electronic waste,” he said.
Pivot to growth
Lingeswaran, who is also the company’s chief financial officer, said the demand for e-waste collection and recycling services, as well as environmental, social, and governance consulting, can be influenced by factors such as increased awareness of sustainability issues, changing regulations, and corporate responsibility initiatives.
To achieve sustained growth, Lak Macros needs to engage big companies like Sime Darby Properties, Touch ‘n Go, banks, and hospitals.
Their involvement can significantly contribute to the company’s revenue and profit growth, said Lingeswaran, adding that expanding and retaining a diverse customer base is crucial for Lak Macros to maintain its growth trajectory.
“Changes in e-waste regulations and policies can affect the demand for Lak Macros’ services and the cost of compliance, which could impact our profitability.
“The adoption of new and more efficient technologies can impact the efficiency and cost-effectiveness of our operations, potentially affecting profitability,” he said.
Lingeswaran noted that Lak Macros provides services throughout the country, including Sabah and Sarawak, catering to customers across the nation.
“Currently, our trucks will carry the e-waste items from one destination to our warehouse in Nilai, Negeri Sembilan. We are planning to have collection centres in major cities in Malaysia in two years,” he said.
E-waste and sustainability
Establishing proper recycling infrastructure has been a challenge for Malaysia in effectively handling and managing its waste stream.
In some cases, e-waste is handled by informal recycling sectors that may not follow environmentally-friendly practices and this can lead to unsafe handling of hazardous materials, improper disposal methods, and potential health hazards for workers and nearby communities.
Through the company’s licensed e-waste collection services, Lak Macros aims to promote a healthier environment while driving into rapid advancement of technologies.
Lingeswaran lauded the government’s efforts to address the e-waste issue by introducing policies and regulations related to e-waste management while the country explore ways to promote recycling and sustainable practices within the industry.
Governments and international bodies are becoming more stringent in regulating e-waste management and this can lead to increased demand for certified e-waste recycling services, creating opportunities for compliant businesses, Lingeswaran said.
“By embracing sustainable e-waste practices, we can contribute to a greener, cleaner, and safer world for generations to come.
“We plan to be a full-fledged environmental, social and governance (ESG) compliant e-waste company in Malaysia,” he said.
Competitors in e-waste market
Lingeswaran stressed that despite the existence of numerous competitors in the market, the amount of waste being generated surpasses the capacity of waste collectors.
“We make sure we are relevant in the market by engaging in educational initiatives and awareness campaigns that can help promote responsible e-waste disposal among the public and businesses.
“By actively participating in such efforts, e-waste management companies can build a positive reputation and foster a sense of community responsibility especially engagement with non-governmental organisations, schools and corporations,” he said.
From motivation to innovation
After completing the ESG course in Circular Economy and Sustainable Strategies with the University of Cambridge in the United Kingdom, Lingeswaran was eager to apply his newly gained knowledge.
“The company also signed a collaboration agreement with Klean, a well-known brand that has its own smart AI reverse vending machine.
“We have found innovative ways to manage waste more efficiently. We now travel extensively, engaging in the end-to-end process of utilising e-waste and ensuring its proper management,” he said. – BERNAMA
