Waste Management Privatised in Malaysia

Alam Flora Sdn Bhd, which will manage the central and east zones including the Federal Territory of Kuala Lumpur 20 September 2011 Malaysia's deputy prime minister, Tan Sri Muhyiddin Yassin has said that the privatisation of waste management will raise the quality of the service in the country. According to the Malaysian National News Agency, Bernama, during a recent press conference at which the privatisation agreement was signed, the deputy prime minister claimed that the move would also enable the selected concessionaire companies to make large scale investments in the latest technology and equipment, as well as a highly skilled work force. "With the (concession) agreement for a 22-year period they would be able to, for example, increase the number of compactors, other machineries and trained workforce as well as make available an adequate number of waste bins," Muhyiddin is reported to have said. The three concessionaire companies are Alam Flora Sdn Bhd, which will manage the central and east zones comprising the Federal Territory of Kuala Lumpur, Putrajaya, Pahang, Terengganu and Kelantan, SWM Environment Sdn Bhd which will manage the southern zone covering Johor, Melaka and Negeri Sembilan and Environment Idaman Sdn Bhd which will manage the northern zones of Kedah and Perlis. Muhyiddin also expressed confidence that the three states - Selangor, Pulau Pinang and Perak - will also enforce the Solid Waste Management and Public Cleanliness Act 2007 (Act 672) in the near future. According to the deputy prime minister, the new agreement had brought to an end the uncertain 14-year interim waiting period for the concessionaires. Prior to the new agreement, the companies had reportedly been quite reluctant to invest in expanding their services, as there were no solid guarantees from the government. "The change has been made taking into account various aspects including the policy frame, institutions, law and the interest of the people. The government also took into account the limited financial capacity of the companies to manage solid waste in a more efficient manner," Muhyiddin added. Muhyiddin, who is also Education Minister said the full privatisation of the service was also part of the government's voluntary commitment to reduce greenhouse gas emissions 40% by 2020. Under the Ninth Malaysia Plan - a comprehensive blueprint prepared by the Economic Planning Unit to allocate the national budget from the year 2006 to 2010 - the government had allocated around RM958.7 million ($307 million) to manage solid waste. However, in 2010 alone, the government had to spend RM303 million ($97 million) - one third of the total amount spent throughout the Ninth Malaysia Plan period. align="left" hspace="5" vspace="1">Muhyiddin explained that the cost of waste management had continued to strain the government, and that the volume of waste produced by the people had risen from 19,000 tonnes per day in 2005 to 27,000 tonnes per day presently. This indicates a serious situation as many of the waste disposal sites in the country are not sanitary landfills. According to the Minister of the 166 landfills operating only eight are sanitary landfills. "By taking over the responsibility, the Federal Government hopes that the (companies) would not only raise the quality of solid waste collection and public cleaning services but also look at increasing their capacities to venture into advanced, environment friendly and cost effective solid waste treatment and management measures," said Muhyiddin. Also Read Medical Waste Management Hotting Up in Malaysia Medical waste management is a healthy industry in Malaysia, with an outlook for strong growth over the coming years, a recent Frost & Sullivan report has revealed... NSWMA: Privatised Waste Management More Efficient A new study by the National Solid Waste Management Association has concluded that privatised waste services generate significant cost savings and lower financial risks for budget-stretched municipalities than publically run services... Waste Management Privatisation Plans for The Bahamas The Government of the Bahamas is aiming to put residential garbage collection contracts for New Providence â the most populous of its islands - out to tender as it moves towards privatising waste management... Sign up for Waste Management World's Free E-Mail Newsletters