JAG Bhd, a Malaysian e-waste recycling outfit has inked memorandum of understanding (MOU) with Japanese diversified materials manufacturer Mitsubishi Materials Corp (MMC) to conduct a feasibility study aimed at developing, constructing, financing and operating a household appliance recycling business in Malaysia.
If successful, this collaboration will allow the ACE Market-listed JAG to explore a broader range of waste sources to diversify its income stream while improving its resource utilisation.
In the long-term, this will contribute to the profitability and financial stability of the group. For MMC, this exercise, if successful, will enable the company to expand its footprint into Malaysia.
“According to published data, our national recycling rate stood at 35.38% in 2023 with household e-waste recycling rate not exceeding 25%,” revealed JAG’s executive director Datuk Ng Meow Giak following today’s (July 10) MOU.
“Data from the Environment Department (DOE) shows that Malaysia accumulated 2,459 tonnes of household electronic waste in 2021, implying that thousands of tonnes of e-waste end up in landfills annually. This is an area where our expertise can be leveraged upon to mitigate and address this issue for the future.”
According to Ng, the MOU is part of JAG’s strategy to explore avenues and opportunities, which also aligns with its focus to remain innovative and sustainable.
“By expanding our recycling capabilities to include household appliances, we not only tap into a new revenue stream but also reinforce our position as a leader in the e-waste recycling industry,” he envisages.
The MoU between JAG and MMC represents a significant milestone in their shared vision of sustainability and innovation. By combining their expertise and resources, both companies are poised to make a substantial impact on Malaysia’s recycling industry while fostering economic growth and environmental stewardship.
The feasibility study will commence immediately with targeted completion in March 2025 and plans for commercialisation in September 2025.
However, the timeline is subject to change depending on the progress of the recycling legislation which is expected to be promulgated by September 2025.
At the close of today’s trading, JAG was down 1 sen or 3.64% to 26.5 sen with 7.36 million shares traded, thus valuing the company at RM199 mil. – July 10, 2024
