Chapter 7

Environmental Protection
1. Environmental Policy
2. Environmental Requirements
2.1 EIA for Prescribed Activities
2.2 Site Suitability Evaluation for Non-Prescribed Activities
2.3 Licence to Occupy Premises
2.4 Emission and Effluents Standards
2.5 Control on Ozone Depleting Substances
 Chapter 7

Environmental Protection
To promote environmentally sound and sustainable development, the Malaysian
Government has established the legal and institutional framework for environmental
protection. Investors are encouraged to consider environmental factors during the
early stages of their project planning. Aspects of pollution control include making
possible modifications in the process line to minimise waste generation, viewing
pollution prevention as part of the production process, and focusing on recycling
options.

1. Environmental Policy

The National Policy on the Environment aims at the continued economic, social,
and cultural progress of Malaysia and enhancement of the quality of life of its people
through environmentally sound and sustainable development.

The Policy aims at achieving:-

- A clean, safe, healthy and productive environment for present and future generations

- The conservation of the country's unique and diverse cultural and natural
heritage with effective participation by all sectors of society

- A sustainable lifestyle and pattern of consumption and production

Malaysia's national environmental policy focuses on:-

- Exercising respect and care for the environment in accordance with the highest
moral and ethical standards

- Conserving the natural ecosystem to ensure the integrity of biodiversity and life
support systems

- Ensuring continuous improvement in the productivity and quality of the

environment while pursuing economic growth and human development objectives

- Managing natural resource utilisation to sustain the resource base and prevent
degradation of the environment

- Integrating environmental dimensions in the planning and implementation of

the policies, objectives and mandates of all sectors to protect the environment

- Strengthening the role of the private sector in environmental protection and

management

- Ensuring the highest commitment to environmental protection and

accountability by all decision-makers in the public and private sectors,
resource users, non-governmental organisations and the general public in
formulating, planning and implementing their activities

- Participating actively and effectively in regional and global efforts towards

environmental conservation and enhancement
63 Environmental Protection
2. Environmental Requirements

The Environmental Quality Act, 1974 and its accompanying regulations call for
environmental impact assessment, project siting evaluation, pollution control,
monitoring and self-enforcement.

Prior to project implementation, the following approvals from DOE are required:-

(i) Environmental impact assessment (EIA) for Prescribed Activities, or

(ii) Site suitability evaluation for Non-Prescribed Activities

(iii) Licence to occupy premises

2.1 EIA for Prescribed Activities

EIA is required for the following activities prescribed under the Environmental
Quality (Prescribed Activities) (Environmental Impact Assessment) Order, 1987.

(i) Agriculture

- Land development schemes covering an area of 500 hectares or more to

convert forest land for agricultural production

- Agricultural programmes necessitating the resettlement of 100 families or more

- Development of agricultural estates covering an area of 500 hectares or more

involving changes in the type of agricultural use

(ii) Fisheries

- Construction of fishing harbours

- Harbour expansion involving an increase of 50% or more in fish landing

capacity per annum

- Land-based aquaculture projects involving the clearing of mangrove swamp

forests covering an area of 50 hectares or more

(iii) Industry

- Chemicals
Where the production capacity of each product or of combined products is
greater than 100 tonnes per day

- Petrochemicals
All sizes

- Non-ferrous
Primary smelting of aluminium (all sizes), primary smelting of copper (all sizes),
and primary smelting which produces 50 tonnes per day and above of other
products

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 - Non-metallic
Cement: for clinker throughput of 30 tonnes per hour and above; lime: 100 tonnes per
day and above for burnt lime rotary kiln or 50 tonnes per day and above for vertical kiln

- Iron and Steel

Requirement of iron ore as raw material for production greater than 100 tonnes per day,
or using scrap iron as raw material for production greater than 200 tonnes per day

- Shipyards
Dead weight tonnage greater than 5,000 tonnes

- Pulp and Paper Industry

Production capacity greater than 50 tonnes per day

(iv) Petroleum

- Oil and gas field development

- Construction of off-shore and on-shore pipelines in excess of 50 kilometres in length

- Construction of oil and gas separation, processing, handling and storage facilities

- Construction of oil refineries

- Construction of product depots for the storage of petrol, gas or diesel (excluding service
stations) that are located within three kilometres of any commercial, industrial or
residential areas and that have a combined storage capacity of 60,000 barrels or more

(v) Resort and Recreational Development

- Construction of coastal resort facilities or hotels with more than 80 rooms

- Hill station resort or hotel development covering an area of 50 hectares or more

- Development of tourist or recreational facilities in national parks

- Development of tourist or recreational facilities or islands in surrounding

waters which are gazetted as national marine parks

(vi) Wastes Treatment and Disposal

Toxic and Hazardous Wastes

- Construction of on-site incineration plant

- Construction of off-site recovery plant

- Construction of off-site wastewater treatment plant

- Construction of on-site storage facility, and

- Construction of secure landfill facility

All off-site treatment and disposal (incineration, wastewater treatment, storage and secure
landfill) of scheduled wastes are not allowed until after 17 December 2010 with the signing
of the concession agreement between the Government of Malaysia and Kualiti Alam Sdn Bhd.
65 Environmental Protection
2.2 Site Suitability Evaluation for Non-Prescribed Activities

Site suitability is evaluated based on the compatibility of the project with respect to
the gazetted structure or local plans, surrounding land-use, provision of set-backs or
buffer zones, capacity of the area to receive additional pollution load, and waste
disposal requirements.

The DOE produces a brochure, "Guidelines for the Siting and Zoning of Industries"
specifying the details on the appropriate buffer zone for each specific industry
category. For potentially hazardous industries, the applicant may be required to
submit a risk analysis to DOE as part of the site consideration.

Any person intending to carry out activities as listed below must obtain prior
permission from DOE:-

(i) New installations near dwelling areas as detailed out in Regulation 4 and First
Schedule of the Environmental Quality (Clean Air) Regulations, 1978

(ii) Construction of any building or carrying out of any work that may result in a
new source of effluent or discharge as stipulated under Regulation 4,
Environmental Quality (Sewerage and Industrial Effluents) Regulations, 1979

(iii) A factory which is categorised as a prescribed premise, namely, crude palm oil
mills and raw natural rubber processing mills, and treatment and disposal
facilities of scheduled wastes

Applicants should obtain prior written approval from DOE as stipulated in

Regulations 36 and 38, Environmental Quality (Clean Air) Regulations, 1978 for any
erection (including incinerators), installation, resiting or alteration of fuel burning
equipment that is rated to consume pulverised fuel or solid fuel at 30 kg or more per
hour, or liquid or gaseous fuel at 15 kg or more per hour.

2.3 Licence to Occupy Premises

A licence is required to occupy and operate prescribed premises. Applications for

the licence shall be made after obtaining permission and/or approval (as mentioned
in 2.3 and 2.4). Licensing fees apply for every licence issued for palm oil and raw
natural rubber processing mills and facilities for the treatment and disposal of
scheduled wastes.

2.4 Emission and Effluent Standards

Industries are required to comply with both air emission and effluent discharge
standards which are regarded as acceptable conditions allowed in Malaysia, as
stipulated in the Environmental Quality (Clean Air) Regulations, 1978 and the
Environmental Quality (Sewerage and Industrial Effluents) Regulations, 1979.

2.5 Control on Ozone Depleting Substances (ODS)

Ozone Depleting Substances (ODS) are categorised as environmentally hazardous

substances under the Environmental Quality (Refrigerant Management) Regulation,
1999 and the Environmental Quality (Halogen Management) Regulation, 1999.
New investments relating to the use of these substances are prohibited.

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