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M. Matsumoto et al.
the import requirements of the EU and Mexico, respectively, are equally applicable
for remanufactured products that wish to enter those markets. The effectiveness of
the government-issued quality certificates concerning that of industry-led systems
depends on the extent of the market development of remanufactured products. In the
nascent phase of the market, the government-led certificate systems are more likely
to be effective. Because credible quality certifications can guarantee product quality,
and help in mitigating consumers’ perceived risks of remanufactured products, we
recommend ASEAN’s policymakers to consider measures to educate consumers and
improve image of remanufactured products in the region.
11.4.3 Notes on Policy in Malaysia
Malaysia currently has a narrow focus on the remanufacturing industry. Toner and
inkjet cartridges are the primary subsectors with majority of the companies (nearly
40% of the identified firms). However, it has the potential to build a strong automobilerelated remanufacturing industry with the existing manufacturing base, coupled with
the availability of an established and sound automotive recycling industry.
The present-day remanufacturers believe that the Malaysian government can
play an important role in developing the industry by influencing policy levers. For
example, offering investment tax incentives, amending or clarifying import policies,
and creating a certification program to instill consumer confidence in high-quality
remanufactured products are all considered to be beneficial to further develop the
remanufacturing industry. For the policies on quality control and customer awareness, the emphasis should be on introducing a remanufactured product quality seal
for remanufactured parts and supporting awareness campaigns on remanufacturing.
The existing quality standards for new goods can be applied to remanufactured goods
as well. Economic incentives should be granted to firms certified to meet the required
standards for high-value remanufacturing.
The Malaysian government is currently in the process of stipulating quality standards for critical automotive parts, which will also include a quality seal. A few countries, including the United States, China, and Korea use a remanufactured product
quality seal, although each country administers it differently. Quality seals in the
United States are designed and administered by industry associations and in China
by the government. Given the nascent market in Malaysia and the cross-cutting
nature of the industry (motor vehicle parts, machinery, electrical, and more sectors),
quality control for remanufactured products in Malaysia is currently more suited to a
government-led model than industry-led. Relevant bodies in the Malaysian government, including MITI, Standards Malaysia, DOSH, DOE, SIRIM, and MAI, are wellpositioned to deliver the key elements of quality control.
Malaysia needs to attract major global OEMs to set up remanufacturing facilities
and significantly launch and grow the industry. The existing remanufacturers are still
in a nascent stage, and they may find it challenging to access the export market.
OEMs and OEM-authorized remanufacturers have a greater competitive advantage
M. Matsumoto et al.
the import requirements of the EU and Mexico, respectively, are equally applicable
for remanufactured products that wish to enter those markets. The effectiveness of
the government-issued quality certificates concerning that of industry-led systems
depends on the extent of the market development of remanufactured products. In the
nascent phase of the market, the government-led certificate systems are more likely
to be effective. Because credible quality certifications can guarantee product quality,
and help in mitigating consumers’ perceived risks of remanufactured products, we
recommend ASEAN’s policymakers to consider measures to educate consumers and
improve image of remanufactured products in the region.
11.4.3 Notes on Policy in Malaysia
Malaysia currently has a narrow focus on the remanufacturing industry. Toner and
inkjet cartridges are the primary subsectors with majority of the companies (nearly
40% of the identified firms). However, it has the potential to build a strong automobilerelated remanufacturing industry with the existing manufacturing base, coupled with
the availability of an established and sound automotive recycling industry.
The present-day remanufacturers believe that the Malaysian government can
play an important role in developing the industry by influencing policy levers. For
example, offering investment tax incentives, amending or clarifying import policies,
and creating a certification program to instill consumer confidence in high-quality
remanufactured products are all considered to be beneficial to further develop the
remanufacturing industry. For the policies on quality control and customer awareness, the emphasis should be on introducing a remanufactured product quality seal
for remanufactured parts and supporting awareness campaigns on remanufacturing.
The existing quality standards for new goods can be applied to remanufactured goods
as well. Economic incentives should be granted to firms certified to meet the required
standards for high-value remanufacturing.
The Malaysian government is currently in the process of stipulating quality standards for critical automotive parts, which will also include a quality seal. A few countries, including the United States, China, and Korea use a remanufactured product
quality seal, although each country administers it differently. Quality seals in the
United States are designed and administered by industry associations and in China
by the government. Given the nascent market in Malaysia and the cross-cutting
nature of the industry (motor vehicle parts, machinery, electrical, and more sectors),
quality control for remanufactured products in Malaysia is currently more suited to a
government-led model than industry-led. Relevant bodies in the Malaysian government, including MITI, Standards Malaysia, DOSH, DOE, SIRIM, and MAI, are wellpositioned to deliver the key elements of quality control.
Malaysia needs to attract major global OEMs to set up remanufacturing facilities
and significantly launch and grow the industry. The existing remanufacturers are still
in a nascent stage, and they may find it challenging to access the export market.
OEMs and OEM-authorized remanufacturers have a greater competitive advantage