End-of-Life Vehicles

(ELV)

For KF3283
2018
The Team
 Typical Department / Abbreviation
Abbreviation Department Abbreviation Department
DoE Department of Environment MoE Ministry of Environment
Under Ministry of Natural
Resources & Environment
MITI Ministry of International Trade METI Ministry of Economy, Trade and Industry
and Industry
RTD Road Transport Department MLIT Ministry of Land, Infrastructure, Transport
JPJ Jabatan Pengangkutan Jalan and Tourism
PUSPAKOM Pusat Pemeriksaan Kenderaan NALTEC National Agency of Vehicle Inspection and
Berkomputer the National Traffic Safety and Environment
Laboratory
For vehicle check.
ATF Authorised Treatment Facilities PST Post Shredding Technology
ASR Automobile Shredding Residue SWR Schedule Waste Regulation
EIA Environment Impact MoT Ministry of Transport
Assessment
Activities
Introduction
Malaysia
• Issues ;
• Vehicle impound lot of the authority (Police, local municipal council) is getting
filled by cars and is not collected.
• There are also vehicles that are abandoned around Malaysia.
• Several cases of cars that are not in proper running condition are being
operated on public roads
• With these issues as per above, Malaysia must have a system that is
able to solve issues of abandoned vehicles
 Background of Recycling (Automobile)
1. Pre-ELV Recycling Act (Pre-2005)
• Vehicles was sent to dismantle, however rate of recovery
were up to 75% (could be lower), thus 20-25% of ASR
(could be higher).
• Around year 2000s, the instability price of scrap iron &
steel vs. ASR causes some disassemblers to dump illegally
(Teshima).
• Dumping sites were getting full, therefore cost to dispose
would increase
 Background of Recycling (Automobile)
2. Reason for ELV Recycling Implementation
Act
• Teshima Island Case:
➢ Becomes a location of illegal dumping, mostly from the
Automotive Industry (ASR & Oils)
➢ Some of these waste are openly burnt to dispose (Tyres
& Battery) and waste fluids seep into the ground.
➢ Action:
1. Water treatment facility was made to monitor & treat
water
2. ASR was sent to a Smelting & Refinery Plant at
Naoshima
3. Treatment cost : 72 Billion JPY
4. Completion Date of treatment
o ASR : 2017
o Water: On going
Background of Recycling (Automobile)
3. Implementation of ELV Recycling Act
• Items to be disposed properly with regards to Extended Producer Responsibility
(EPR);
I. ASR
II. Airbag
III. Air conditioning gas (CFC/HFC)
• Mandatory payment of recycling fee by user before registering a car. Payment is
made to JARC
• Recycling percentages are set for ASR & Airbags
• Establishment of JARP & JARC
1. Japan Automobile Recycling Promotion Centre (JARC)
➢ Collects and manages the recycling fee
➢ Manages the database of ELV
➢ Conducts business related to automotive recycling

2. Japan Auto Recycling Partnership (JARP)

➢ Collects and ensure that air conditioning gases (HFC/CFC) and airbags are recycled responsibly.
➢ Promote appropriate recycling
 Laws and Regulations
Law Japan Malaysia
1970 Waste Management & Public Cleansing Law MOE MOE
1997 ELV Recycling Law METI Draft - MAI (MITI)
2002 Vehicle Recycling Law METI
Private Information Protection Law n/a
Road Traffic Law n/a
Industrial Safety Health & Act n/a Already available
Road Transport Vehicle Law n/a
Ozone Layer Protection Law n/a
Fire Safety Act n/a
Water Quality Pollution Control Act n/a
Basel Law n/a
 Tax (Japan vs Malaysia)
Japan Malaysia
Type of Tax (JPY) New Car Renewal Car
New or Renewal 2,800 2,500 Yes for Registration Fee
Inspection/Registr 8,300
ation Fee
Acquisition 50,000 (3% of None GST (6% from car price)
price)
Weight 56,700 (by 37,800 (by weight 2 None
weight 3 years) years)
Tax (by emission) 39,500 None None
Liability insurance 30,910 (3 years) 22,470 (2 years) Based on car price
(every year)
Inspection fee None About 15,000 For used car only
(statutory
inspection)
Total 179,910 78,000
 Gap between Malaysia and Other Countries in ELV
Others Malaysia Proposal
Recycling Support Financing 10,000 JPY (Japan) Draft To proceed with approval
System Netherland
Sweden
Norway
Denmark
ELV Support Organization JARP Not available To propose MARP and MARC
JARC
ELV/ Recycling Laws Available Environment Law – Available To proceed with approval

ELV Law - Draft

PAS777 Japan Industrial Guidelines (4R and To proceed with approval for
2S) MS 4R and 2S
Deregistration Japan – used car, export and Available for used car or non- To propose permanent
permanent active car deregistration
 Malaysia
4R and 2S Current
ATF Licensed facilities accepting and processing used parts or ▪ Penilaian Awal Tapak (Mesyuart One
(Authorized components or ELV and are able to comply with the Step Agency – Local, Fire Department,
Treatment Facility) relevant statutory and regulatory requirements. Note: ATF RTD, Police, DoE Etc)
includes entities involves in 4R activities including material ▪ EIA
and core recovery, processing and handling for reuse, ▪ KV Section 19 – Kebenaran Bertulis
repair, recycle and remanufacture of motor vehicle parts utk Beroperasi dan Equipment
and components (Certified by MITI) ▪ Jadual Pematuhan
▪ Lesen Beroperasi

Prescribed Premise for Operation (Yearly

License May – April, fee rm100)
Recycle Process to segregate non-usable parts or components for
material recovery (Certified by MITI)

Remanufacture Process to restore existing parts or components to “as

good as new” condition using a standardized industrial
process in line with specific technical specifications
(Certified by MITI)
 Department of
Environmental Requirements
Waste Management
• Follow Scheduled Wastes Regulations 2005
• Waste generated:
• Waste oil (from engine)
• Oil filter/filter
• Fluids (brake, power steering…)
• Coolant
• Battery
• E-waste
 SWR 2005
• Reg 3-Waste generator shall notify categories and quantities
waste generated
• Reg 4-Waste shall disposed to prescribed premises
• Reg 6-Recovery of material/product shall be done at
prescribed premises
• Reg 9-Shall be stored in containers, durable, prevent spillage
and leakage
• Reg 9-Area of storage shall be designed
 SWR 2005
• Reg 10-Shall be clearly labelled
• Reg 11-Shall keep accurate & up-to-date inventory (E-SWIS)
• Reg 12-Information to be provided by waste generator,
transporter, waste receiver (E-SWIS)
• Reg 13-Waste accompanied by information (waste card)
 How E-SWIS work?
Waste Generator responsible
How E-SWIS work?
Waste Receiver responsible
How E-SWIS work?
 “4R2S” NAP 2014 Strategic Thrust on Safety,
Security and Environment
Thrust Policy Measures
Safety, Security 1. Promote vehicle safety through
& Environment ❑ WVTA implementation by JPJ (Testing Facilities)
❑ Gradual adoption of standards across safety related used and new parts & components
– including 4R2S
❑ Voluntary End of Life Vehicle (ELV) – Roadworthiness vehicle testing.

2. Promote environment through

❑ Implementation of Euro 4M for petrol and Euro 5 for Diesel
❑ Adaptation of 3R (Reduce, Reuse and Recycle) international standards for vehicle
“green” into 4R2S
❑ Development Detail implementation of the Automotive Remanufacturing Roadmap 2020
✓ Development of an automotive remanufacturing industry by full implementation of
ATF
✓ Transformation of the Aftermarket towards a regulated industry by establishing
ATF facilities.
 “4R”
“4R” covers the industry processes of recovery of vehicle parts and components for:
❑ Reuse;
❑ Repair;
❑ Remanufacture; and
❑ Recycle

The 4R standard prescribes ELV management, the parts and components recycling and remanufacturing
industries, and the safety and environmental aspects of the automotive aftermarket ecosystem. This standard
prescribes requirements for 4R activities of vehicles parts and components. This standard also covers aspects
relating to knowledge, process and method, materials, equipment, safety and environment.

This standard applies to entities involved in 4R activities including material recovery, processing and handling for
reuse, repair, recycle and remanufacture of vehicles parts and components. These licensed entities are also
known as authorised treatment facilities (ATF).
 “2S”
“2S” covers the code of practices for provision of:
❑ Service; and
❑ Spare (Replacement) parts

“2S” standard prescribes requirements of the 2S (Service and Spare Part) Workshops and Part Shops activities
including of responsibility of workshop and Part Shop operators with regards to the requirement of 4M (Man,
Method, Machine, and Material), facilities required, training and competency of staff.

The vehicles categories covered by this standard as per MS 1822 : motor vehicle classifications L, M1, M2,
M3, N1, N2, N3 and O.
 AUTOMOTIVE ECO-SYSTEM
OEM
Car Manufacturers Ownership
DEALERS [New / SERVICING & REPAIRS
Ownership Independent Workshops
Used Cars] Franchised Workshops
Tyre Service Shops
CAR IMPORTERS Servicing & Repairs Accessories Shops

SPARE PARTS
Accident Repairs / Vehicle Parts Wholesalers / Distributors
Inspections Parts Retailers
CAR
OWNERS Safe & Comfortable
USED CARS Used Cars
Used Car Dealers
Driving Experience
USED PARTS
Pre-Owned Cars
Used Parts Importers
Dealers
Purchase & Install Used Parts Dealers

REMANUFACTURED PARTS
CHANGE Ownership Parts Remanufacturers
AUTO RECYCLING Remanufactured Parts Dealers
(AUTHORIZED TREATMENT FACILITIES)
Car Dismantlers
Salvage Operators VEHICLE INSPECTION CENTRES
Puspakom [PDI / Periodic / Mandatory]
Scrap Metal Dealers
LIST OF THE ELV EQUIPMENT
No Items
1 Self-loader; Maximum capacity loading: 9,000kg
2 Forklift; container spec (2.0 – 3.5 tan)
3 Gas/ Oxygen Cutter
4 Tire Changer
5 Compressor (5 – 10hp)
6 Tool; ratchet wrench, Clip Remover, Socket Wrench, Spanner Set, x-shaped wrench, Monkey wrench, Hex Key
Set Allen, Screwdriver Set, Bolt cutter,
7 Drain Equipment; Petrol, Diesel, Engine oil, Diff oil, Transmission oil, Power steering fluid, Brake fluid, Coolant &
Refrigerant identifier.
8 Airbag deployment tool
9 Storage; 5 engines, 20 doors, 20 fenders, 20 tyres, 10 bumper, & 1 Shelf parts rack
10 Drain control; (Oil Trap/ Oil interceptor)
11 Press Machine

Total = RM476,210.00 = 12,870,540.54 yen per lane

Man Power Readiness
ELV ACTIVITY in JAPAN
ATF ELV Operator : 2500 company
Target Car Dismantle : 2.25% on the road Car
Activity Based Costing Drain Process
Dismantle vehice Charge = 60 JPY/min
Normal /car : 25 min (min)/ 2 day (max)
Pretreatment

Fender = Dismantle (Hand)

1500 JPY

Dismantle (Heavy)
Light =
2500 JPY Hud (Bonnet) =
1500 JPY
Engine and suspension & Catalyst
Deatching

Bumper=
Material product/stock work
Door = 1000 JPY
2500 JPY

Block dismantle car Costing

Light/compact Car= 5000 JPY
Strut = Tyre = Sedan Car = 7500 JPY
1500 JPY 1000 JPY
Cost = Car weight / JPY

Dismantler PST
 Vehicle Pre-
treatment
Inspection

Salvage Parts
&
Vehicle
Component
Depollution
Scrap
Handling
ELV
SKILL
NEEDED
Salvage Parts
& Vehicle
Component Dismantling
Storage

Salvage Parts
&
Component
Assessment
 MAN POWER
EXPERT
WORKER PREPARATION

SKILL STANDARD
DEVELOPMENT
SKILL
STANDARD

ATF ELV INDUSTRY

MANAGER IN MALAYSIA
FACILITY TRAINER MODULE
ACCREDITATION
COMPETENT
WORKER

CERTIFICATION
 EDUCATION &
TRAINING SYSTEM IN MALAYSIA
World of Work
Age Years
Edu.
26 Academic Education Training Skill
Qualification Qualification
25

24 JTM
Ph.D MARA
23 KBS
Universities &
Masters Other Tertiary KPM
22
Education STATE GOV’T DLKM L5
21 15 Degree Other Training
Providers DKM L4
20 14
Diploma
SKM L3
19 13 Form 6
STPM Academic Schools
18 12 SKM L2
Form 5 Sec. Academic Sec. Tech. Voc. Ed. Skill Training
17 11 SPM SKM L1
Form 4 Schools Schools Sec. Voc. Schools
16 10
PMR Form 3
15 9
Form 2 Lower Secondary Schools
14 8
Form 1
13 7
Facility of Dismantling Process Needed at Technical Institute
1) Automotive specialized tools
Facility of Dismantling Process Needed at Technical Institute
2) Drainage Area
Facility of Dismantling Process Needed at Technical Institute

3) Storage Area
Facility of Dismantling Process Needed at Technical Institute

4)Heavy Machinery
 Implementation ELV Initiatives in Malaysia
Stages Time Line
Stage 1 i. Set up a special Committee on ELV Jan 2018 – Jun 2018
Survey & ii. Confirmation of ELV data Jan 2018 – Jun 2018
study iii. Survey on understanding of public awareness conducted by Public Universities Jan 2018 – Jun 2018
iv. Survey on compulsory deregistration by RTD (Road Transport Department) Jun 2018 – Dis 2018
v. Economic study of continuous process Jan 2018 – Jun 2018
• Are the smelters ready to take the cube/main frame of cars
• Cements factories ready to take ASR
• Boilers to take tyres as fuels
• Man power for dismantling businesses
Stage 2 i. 4R2S standard (Reuse, Recycle, Remanufacturing, Repair, and Services)
Preparation programs → Public comment Jan 2018 – Jun 2018
of Standards ii. End-of-Life Vehicles (ELV) Acts preparation. Currently in draft Jun 2018 – Dis 2018
& Acts iii. Advertisement and Public Sharing in TV, Internet, news portal and Boards Jan 2019
iv. RTD Compulsory Deregistration Guidelines (Receive Automatic Invoice & Lose Jan 2019
ownership) preparation
v. PUSPAKOM readies inspection facilities (forms, manpower, machines and pits) Jan 2019
Stage 3 Implementation of ELV acts Jan 2020
Implementat Implementation of RTD Compulsory Deregistration Guidelines Jan 2020
ion
CONCLUSION
• 2018-2019 :

• Voluntary private vehicle inspection; and deregistration process)

• Gazette the 4R2S standard as requirement in application as ATF-ELV
• Details skills module develop based on Kaiho Sanyo manual
• Research on specific materials by Master/ PHD students
• Development of ELV acts and relevant laws

• 2020 Onwards :

• Mandatory private vehicle inspection – vehicle age more than 15 years and every year for
subsequent years
• Implementation of ELV acts
 Consumers
Government • Recipient of the benefits – both economic and environmental
• Legislative & Policy framework • Awareness of Green Automotive Technologies & environment
• Policies on infrastructure network for green automotive • Consumer Educations on green automotive initiatives & ELV programs
• Incentive and subsidies to encourage adoption of green • Mindset or perceptions on green (recycled or remanufactured) parts
automotive products
• MAI facilitate & managing government agencies in
formulating the regulatory framework for the
implementation of Green Initiatives of NAP 2014 eg:
KeTTHA, MoT, MoF, MOSTI, KPDNKK, NRE
OEMs
• Technology developments & Promotion of EEVs
• Collaborated with technology providers for EEV
• Capture new business opportunities - Malaysia as a
regional hub
Supporting Industries • Practice Extended Producer Responsibility (EPR)
NAP 2014 • Promote Design for Recyclability
• Work with Power/Utilities Companies to deploy
& supply charging infrastructure • Support End of Life Vehicle Programs
• Work with Energy/Oil Companies to deploy & • Promote Remanufacturing
supply clean diesel or gasoline fuel
• Work with raw materials manufacturers of
steel, plastics & composite

Aftermarket
• HCD: Green Jobs Capability enhancement
• SCD: Promotion of Authorized Treatment Facilities ;
• Transforming Recyclers & Rebuilders to Remanufacturers
• TD: Standardize Business Process; Promote Environmental friendly Standard Operation
Practices;
• Data Management ; Standards & Compliances
KF3283 Quiz
• Write a one page essay containing
• This is an individual work
• Names, matrix number, original sign.
1. Title
2. Intro of ELV
3. Does Malaysia need ELV? (mention acts, what is available and what act is
needed?)
4. Do you support ELV? And why? (There is no wrong answer for your
opinion, but you need to reason properly, may be costs or economic
reasons)
5. Is your country able to implement this? Submit by 1 pm, Thursday, 11
June 2020, Malaysian time.
Terima Kasih