THE circular economy can be translated into higher revenue for companies that are aiming for sustainable growth, according to the Malaysia Productivity Corporation (MPC).
Its director general Datuk Abdul Latif Abu Seman said, “Even though the circular economy business models are just emerging in the Malaysian context, its practicality and relevancy will entice local companies to adopt them.”
“MPC is looking into supporting and encouraging the companies to transform into this model,” he added.
Abdul Latif also mentioned that MPC is putting in more effort to ensure that more companies are aware of the opportunities to generate revenue and identifying promising circular business models that could be adopted.
“Companies should tap into this segment of the market especially during these trying times as it will further enhance productivity towards sustainable economic growth,” he opined.
MPC also noted that one of the most popular circular economy business model being integrated in local companies is one where customers are paying got a service instead of a product.
Meanwhile, University of Malaya’s Business and Accountancy faculty member Prof Suhaiza Hanim pointed out that the overpopulation and growing demands for goods have increased the volume of waste as well as air, soil and water pollution, causing high negative impacts for both humans and ecosystem.
She emphasised that the issue can be resolved through sustainable consumption and production throughout the industrial supply chains, resulting in a continual use of resources and reducing the amount of waste being generated.
This can be achieved through long-lasting designs, proactive maintenance, recycling, repairing, refurbishment and remanufacturing.
“The more efficient use and reuse of resources will lower the overall resource inputs, energy, emissions and waste leakage. This will give balance between the economy, environment, and society in a long run,” she said.
“However, the situation is becoming worse when there is a lack of sustainable practices in the industrial activities. Shorter lifespan products are produced which have caused inefficient utiliation of resources while recycling rates of many raw materials are still far too low,” she cautioned. – Nov 19, 2020
