The world is grappling with an unprecedented waste crisis. Municipal solid waste generation has skyrocketed from 1.3 billion tonnes in 2012 to over 2.3 billion tonnes in 2023, and it is projected to reach a staggering 3.8 billion tonnes annually by 2050. This growth is driven by urbanisation, industrialisation, and increasing consumption, particularly in developing countries where waste management infrastructure remains inadequate. Alarmingly, around 25% of waste globally is left uncollected, while 39% is managed in uncontrolled facilities, leading to pollution, health hazards, and environmental degradation.
Table of Contents
Malaysia’s Waste Crisis: Turning Challenges into Opportunities
Malaysia is taking proactive steps to address its solid waste challenges and transition toward sustainable waste management practices. Following China’s ban on plastic waste imports in 2018, Malaysia faced mounting domestic waste management issues, including illegal dumping and insufficient recycling facilities. However, the launch of the Circular Economy Blueprint for Solid Waste (2025-2035) marks a transformative milestone in tackling these challenges. This comprehensive plan, introduced by the Ministry of Housing and Local Government, aims to institutionalise circular economy principles through five strategic pillars: governance and legislation, digitisation and technology, infrastructure development, guidelines and procedures, and market creation. With initiatives like the Extended Producer Responsibility (EPR) framework, Zero Waste to Landfill Certification, and the establishment of a National Circular Economy Association, Malaysia is poised to reimagine its approach to waste management while fostering economic growth and environmental sustainability.
The Importance of Proper Waste Management
Proper waste management is critical for mitigating the triple planetary crisis—climate change, pollution, and biodiversity loss. Unmanaged waste contributes to 20% of human-related methane emissions globally, a greenhouse gas 80 times more potent than carbon dioxide. Additionally, poor waste practices harm ecosystems, contaminate water sources, and endanger public health.
The waste hierarchy emphasises reducing, reusing, recycling, and recovering resources before disposal. Yet many developing nations still rely on open dumping and burning—practices that are unsustainable and costly. By adopting innovative solutions and shifting toward circular economy models, countries can decouple economic growth from waste generation and achieve significant environmental and economic benefits.
What Is the Circular Economy
The circular economy is a transformative model that reimagines how products are designed, used, and disposed of. Unlike the traditional linear economy—where resources are extracted, used, and discarded—the circular economy focuses on minimising waste by keeping materials in use for as long as possible. Key principles include:
- Designing out waste: Products are designed for durability, repairability, and recyclability.
- Resource efficiency: Materials are reused or repurposed instead of being discarded.
- Closed-loop systems: Waste becomes a resource for new production processes.
By adopting circular economy practices, businesses can reduce dependence on virgin materials while lowering greenhouse gas emissions and pollution.
How the Circular Economy Can Solve the Waste Crisis
Implementing circular economy principles can address key challenges in global waste management:
- Reducing Waste Generation: By designing products with longer lifespans and promoting sustainable consumption patterns.
- Improving Recycling Rates: Advanced technologies like AI-powered sorting systems can enhance recycling efficiency.
- Creating Economic Opportunities: Circular business models generate green jobs in areas like repair services, recycling facilities, and material innovation.
- Minimising Environmental Impact: Closed-loop systems reduce pollution and conserve natural resources.
A recent UNEP report suggests that transitioning to a circular economy could lead to a net economic gain of USD 108 billion annually by 2050 while drastically reducing global waste volumes.
Case Studies: Success Stories in Circular Economy
Several companies have emerged as pioneers in this space, showcasing innovative approaches to circularity. Among them are Patagonia, IKEA, and Malaysia’s Biji-Biji Initiative, each demonstrating how circular principles can be successfully integrated into business models.
Patagonia, Inc.
Patagonia has long been a leader in sustainable fashion and environmental advocacy. The company’s commitment to circularity is exemplified through its Worn Wear program, which extends the lifespan of its products by offering repair services, resale options, and recycling initiatives. Customers can trade in used Patagonia gear, which is then repaired or refurbished for resale, reducing waste and minimizing the demand for new products. Patagonia also prioritises the use of recycled materials, such as in its Responsibili-Tee®, a T-shirt made entirely from recycled plastic bottles and cotton scraps, which uses 96% less water and generates 45% less CO2 emissions compared to conventional cotton tees. Beyond product innovation, Patagonia actively engages in environmental activism and advocacy, dedicating resources to protecting public lands and promoting regenerative organic agriculture. Its holistic approach to sustainability underscores the importance of taking responsibility for products throughout their lifecycle.
Inter IKEA Systems B.V.
IKEA, the global furniture giant, has embraced circular economy principles by rethinking how its products are designed, manufactured, and consumed. IKEA’s Circular Hub initiative encourages customers to return used furniture for resale or recycling, ensuring that materials are kept in circulation rather than discarded. The company has also committed to using only renewable and recycled materials in its products by 2030. IKEA’s focus on modular designs allows for easier repair and refurbishment, aligning with the circular economy’s emphasis on durability and resource efficiency. Furthermore, IKEA has invested heavily in renewable energy solutions to power its operations sustainably. By integrating circularity into its business model at scale, IKEA demonstrates how large corporations can lead the transition toward sustainable consumption.
Biji-biji Design Sdn Bhd
In Malaysia, the Biji-Biji Initiative serves as an inspiring example of how small enterprises can drive change through circular practices. This social enterprise focuses on upcycling discarded materials into innovative products such as bags, accessories, and furniture. By transforming waste into valuable goods, Biji-Biji not only reduces landfill contributions but also raises awareness about sustainable consumption among local communities. The initiative actively collaborates with businesses and organisations to promote eco-conscious practices while providing job opportunities through green manufacturing processes. Its success highlights the potential for grassroots efforts to contribute meaningfully to the circular economy.
These case studies illustrate those businesses of all sizes—whether multinational corporations or local enterprises—can adopt circular economy principles to address pressing environmental challenges.
Design Out Waste for a Sustainable Future
The global waste crisis demands bold action and innovative thinking. By embracing circular economy principles:
- We can design out waste from the start by prioritising durability and recyclability in product development.
- Businesses can reimagine how products are produced and consumed to minimise environmental impact.
- Small changes—like using refillable containers or repairing items—can collectively lead to big impacts.
The transition to a circular economy is not just an environmental necessity but also an economic opportunity. As individuals, businesses, and governments work together to close the loop on waste management, we can pave the way toward a sustainable future where rubbish truly becomes a resource.
At Bernard Business Consulting, our team of innovators and practitioners is dedicated to inspiring businesses to embrace sustainability and adopt circular economy principles from within. Do you have an idea but are unsure how to get started? Let’s talk! We can help transform your vision into the next game-changing solution, driving both environmental and business success.
References:
- World Bank.(2012, June 6). Report shows alarming rise in amount, costs of garbage. World Bank. https://www.worldbank.org/en/news/feature/2012/06/06/report-shows-alarming-rise-in-amount-costs-of-garbage
- United Nations Environment Programme.(2024, February 29). World must move beyond waste era and turn rubbish into resource: UN report. UNEP. https://www.unep.org/news-and-stories/press-release/world-must-move-beyond-waste-era-and-turn-rubbish-resource-un-report
- United Nations Environment Programme.(2024, March 11). Eight ways to overcome the waste pollution crisis. UNEP. https://www.unep.org/news-and-stories/story/eight-ways-overcome-waste-pollution-crisis
- International Finance Corporation.(2024, May 15). The world has a waste problem. IFC. https://www.ifc.org/en/blogs/2024/the-world-has-a-waste-problem
- United Nations Environment Programme.(2024). Global waste management outlook 2024: Turning the tide on waste: Solutions for a healthier planet. UNEP. https://www.unep.org/ietc/resources/report/global-waste-management-outlook-2024
