11 Barriers for Remanufacturing Business in Southeast Asia …
159
compared with independent players along each step of the remanufacturing value
chain. OEMs not only have access to the detailed technical specifications for each
part to guide the remanufacturing process, but they can also leverage the existing
capabilities from their manufacturing facilities, such as testing and machining equipment and technical know-how. At the sales and distribution stage, OEMs can lend
their brand to the remanufactured product, thus providing better support for the
product. Malaysian government led by MITI can play a role in promoting awareness
of remanufactured products. This can be done through awareness campaigns, mainly
targeted at businesses.
For increasing ease of trade, the Malaysian government should maintain the
existing trade policies on cores, including the prohibition on import of items considered as e-waste, but continue to be open to case-by-case consideration of exemptions,
as well as continue to allow imports of cores to be remanufactured under warranty.
Furthermore, to increase the ease of trade and promote remanufacturing in the
country, the industry expects the government to coordinate and reduce the existing
double taxation for trades, namely tax to import cores and to export remanufactured
goods.
Malaysian government should enhance waste management (e.g., by establishing
extended producer’s responsibility, such as a take-back or deposit-refund system, or
requiring to use a minimum amount of recycled material), enhance end-of-life vehicle
(ELV) regulations in the medium term (e.g., by mandating a maximum percentage
of an end-of-life vehicle that may be scrapped), and incorporate “consider remanufactured product first” guideline into the government procurement policy. These
policies will help enhance both the supply of cores and the demand for remanufactured goods while creating a more sustainable economy and achieving cost savings
for the government.
Malaysia has announced several policies such as the National Policy on the Environment that include sustainable development. The 10th Malaysia Plan also promotes
sustainable development. The government should make a special mention in environmental regulations and policies that remanufacturing is an attractive means of reuse
and sustainable development. This would build greater public awareness regarding
the environmental benefits of choosing remanufactured products. Consumer awareness campaigns in this regard would also be useful. This would ensure that consumers
have remanufactured products at the “top of mind” when making an environmentally friendly choice and increase customers’ understanding of the quality and value
proposition of remanufacturing to promote a sustainable economy, as well as increase
the demand for remanufactured goods.
11.5 Summary
Remanufacturing is key to increasing the resource efficiency of economies and
pursuing circular economy. Furthermore, enabling international remanufacturing
supply chain is likely to enhance the effects of remanufacturing in increasing resource
efficiencies.
159
compared with independent players along each step of the remanufacturing value
chain. OEMs not only have access to the detailed technical specifications for each
part to guide the remanufacturing process, but they can also leverage the existing
capabilities from their manufacturing facilities, such as testing and machining equipment and technical know-how. At the sales and distribution stage, OEMs can lend
their brand to the remanufactured product, thus providing better support for the
product. Malaysian government led by MITI can play a role in promoting awareness
of remanufactured products. This can be done through awareness campaigns, mainly
targeted at businesses.
For increasing ease of trade, the Malaysian government should maintain the
existing trade policies on cores, including the prohibition on import of items considered as e-waste, but continue to be open to case-by-case consideration of exemptions,
as well as continue to allow imports of cores to be remanufactured under warranty.
Furthermore, to increase the ease of trade and promote remanufacturing in the
country, the industry expects the government to coordinate and reduce the existing
double taxation for trades, namely tax to import cores and to export remanufactured
goods.
Malaysian government should enhance waste management (e.g., by establishing
extended producer’s responsibility, such as a take-back or deposit-refund system, or
requiring to use a minimum amount of recycled material), enhance end-of-life vehicle
(ELV) regulations in the medium term (e.g., by mandating a maximum percentage
of an end-of-life vehicle that may be scrapped), and incorporate “consider remanufactured product first” guideline into the government procurement policy. These
policies will help enhance both the supply of cores and the demand for remanufactured goods while creating a more sustainable economy and achieving cost savings
for the government.
Malaysia has announced several policies such as the National Policy on the Environment that include sustainable development. The 10th Malaysia Plan also promotes
sustainable development. The government should make a special mention in environmental regulations and policies that remanufacturing is an attractive means of reuse
and sustainable development. This would build greater public awareness regarding
the environmental benefits of choosing remanufactured products. Consumer awareness campaigns in this regard would also be useful. This would ensure that consumers
have remanufactured products at the “top of mind” when making an environmentally friendly choice and increase customers’ understanding of the quality and value
proposition of remanufacturing to promote a sustainable economy, as well as increase
the demand for remanufactured goods.
11.5 Summary
Remanufacturing is key to increasing the resource efficiency of economies and
pursuing circular economy. Furthermore, enabling international remanufacturing
supply chain is likely to enhance the effects of remanufacturing in increasing resource
efficiencies.