Department of Environment seeks public feedback on proposed amendments to the Environmental Quality Act 1974

The Department of Environment of Malaysia (“DOE”) has published a Consultation Paper on its Proposed Amendments to the Environmental Quality Act 1974 (“EQA”) (“Consultation Paper”) on the Malaysian Government’s Unified Public Consultation (UPC) website. The consultation period is from 13 May 2025 to 16 June 2025.
 
According to the DOE, the purpose of the public consultation is to, among others, gather comments and suggestions from stakeholders, including the public on the purposes of the proposed amendments to the EQA to ensure that amendments made are inclusive, fair and effective.
 
The Consultation Paper outlines eight main components in the proposed amendments to the EQA. However, the DOE has also stated that the proposed amendment will not be limited to the aforesaid eight main components.
 
The eight main components and the proposals comprised within each component are as follows:
 
No. Main Components Outline of Proposals
1. Administration and Governance
  • Amendments will be made to strengthen legislative interpretation for greater clarity and to align with current conditions.

  • Enhance the powers of the Minister, Director General and the Environmental Quality Council.
2. Review of Existing Fees
  • Existing fee rates will be reviewed, including licence fees which are outdated. For example, it is proposed that licence renewal fees will be increased from RM10,000 to RM30,000.
3. New Fees
  • New fees will be introduced. For example, fees for filing of notices of appeal, selling of data, processing import and export of scheduled wastes and environmentally hazardous substances, and processing environmental impact assessment (“EIA”) reports; and imposition of performance bonds as security to ensure that promoters of prescribed projects comply with the conditions of the EIA approval and implement effective pollution control measures.
4. Review of contribution to and use of the Environmental Fund
  • The use of the Environmental Fund (Kumpulan Wang Alam Sekeliling) (KWAS) will be expanded to include payments to whistleblowers.

  • Contribution rates will be set for entities that are involved in oil and gas, environmentally hazardous substances and waste disposal.
5. Implementation of Green Industry Practices
  • Green industry practices refer to approaches and strategies in the industrial sector that aim to reduce the impact of environmental pollution and improve resource and energy efficiency such as optimal use of raw materials and recycling of industrial waste. The practice is associated with sustainable development, where the industry strives to balance economic growth with environmental protection.

  • Through this amendment, green industry practices will be legislated as opposed to being implemented on a voluntary basis. The implementation of green industry practices is monitored through green industry enforcement audits.
6. Mechanisms to mainstream the environment
  • The Guided Self Regulation (GSR) approach is a self-compliance method introduced by the DOE since 2016. Through this approach, it is expected that regulated sectors will mainstream environmental considerations in the planning, construction, implementation and operation of their premises in accordance with the regulations set by the DOE. Through this approach, an Environmental Compliance Monitoring Committee (“ECMC”) is to be established by the premise owners to monitor the implementation and effectiveness of environmental policies in their respective organisations.

  • The seven environmental mainstreaming mechanisms outlined are (i) environmental policy; (ii) environmental budgeting; (iii) environmental monitoring committee; (iv) environmental facilities; (v) environmental competency; (vi) environmental reporting and communication; and (vii) environmental transparency.

  • In the long term, this approach is expected to create a culture of appreciation and respect for the environment and consequently reduce pollution from regulated sectors. Self-regulation will complement the command and control approach currently implemented by the DOE.

  • Through this approach, the DOE’s main role is to raise awareness and facilitate interested communities or stakeholders to protect and conserve the environment without disregarding existing legislation.

  • The responsibility to curb and overcome environmental pollution problems will be placed entirely on stakeholders, with the DOE’s role as a guide and advisor.

  • Through this amendment, the implementation of environmental mainstreaming will be legislated as opposed to voluntary implementation by the industry. Implementation will be through self-regulation practices and requires the industry to provide implementation reporting.
7. Strengthening approval procedures for EIA Reports
  • The EIA is an important instrument to ensure that development projects do not have significant negative impact on the environment. Thus, it is necessary for the EIA approval procedure to be strengthened to increase its effectiveness in controlling environmental impact.

  • Through the amendments, the procedure for processing EIA reports will be improved with improvements to the role of qualified persons, the imposition of fees and bonds, and the development of regulations relating to EIA management.
8. Improvements in pollution control management
  • This provision states the requirement for premise owners to install pollution control equipment using the best available technology before starting operations. In addition, premise owners are required to implement best technology practice and best management practice from time to time to fulfil their obligations on environmental protection. This forms part of the precautionary approach which will be emphasised in the implementation of the proposed new law.

  • Pollution control management refers to strategic measures taken to reduce, control, or eliminate pollution that has a negative impact on the environment and human health. Pollution can occur in various forms such as air, water, soil, noise, and solid waste pollution.

  • Pollution control management will be improved through the proposed amendments such as the requirement to install control devices that are more effective, and tightening the control of import and export of environmentally hazardous substances.
 
Submission of Feedback
 
Feedback on the Consultation Paper may be submitted through the relevant page of the Unified Public Consultation website which can be accessed here.
 
Comments
 
The Consultation Paper has not provided an indicative date as to when the proposed amendments will be tabled before the Malaysian Parliament.
 
The thrust of the EQA proposed amendment areas based on the eight general components set out in the Consultation Paper appears to be to shift the burden onto waste generators to take steps to mitigate pollution from their operations, with the introduction of the requirement for an ECMC, implementation reporting and pollution control management. However as can be seen from the various breaches of scheduled waste management requirements even with the mandatory reporting legislated under the Environmental Quality (Scheduled Wastes) Regulations 2005, there is still a need for the DOE to increase its enforcement of the EQA and its regulations in order to achieve the stated goal of the proposed amendments, which is stated to be environmental mainstreaming in order to achieve better protection of the environment. Issuance of guidelines by the DOE for ECMCs to comply with in their set up of their monitoring mechanisms will also be important for consistency and in order to ensure that all adhere to a high standard in accordance with industry best practices.
 
The implementation of Green Industry Practices and the review of the EIA approval process and use of the Environmental Fund are good objectives. There will be a need to look into the details of the proposed use of the Environmental Fund to reward whistleblowers to ensure that adequate safeguards are introduced such that the quantum to be paid to whistleblowers will be determined on an equitable basis. It is hoped that the overall objective of greater environmental protection and a greener, cleaner and more sustainable use of natural resources will become mainstream amongst businesses and the public once the proposed amendments to the EQA come into effect.
 
 
Alert by To’ Puan Janet Looi, Partner and Head of the Environmental Law Practice of Skrine.1
 
 
 

1 The assistance of Evangeline Koay Qi Eun (Pupil) in the preparation of this Alert is acknowledged.

This alert contains general information only. It does not constitute legal advice nor an expression of legal opinion and should not be relied upon as such. For further information, kindly contact skrine@skrine.com.