Kuala Lumpur, 1 July 2025: ERIA, in collaboration with the Malaysia Automotive Robotics & IoT Institute (MARii), held a seminar titled ’Vehicle Recycling in the ASEAN Region: Malaysia Chapter.’ The event launched ERIA’s recent publication on end-of-life vehicle (ELV) management and convened over 50 participants – including government officials, researchers, EV battery and vehicle recyclers – to explore sustainable pathways for Malaysia’s automotive supply chain.

Opening Remarks: Collaboration for Sustainability

Reo Kawamura, ERIA’s Director for Environmental Policy, opened the seminar by underscoring the need for robust frameworks for ELV management. He highlighted Malaysia’s progress in establishing the Authorized Automotive Treatment Facilities (AATF) and explained the report’s connection to the upcoming ‘Master Plan for ASEAN–Japan Co-Creation Initiative for the Next-Generation Automotive Industry.’

Bakri bin Alias, Senior General Manager at MARii, echoed these sentiments, noting the importance of proactive leadership to drive reform. He referenced MARii’s AATF scheme and future initiatives such as a battery passport system, stressing the importance of turning today’s challenges into opportunities for future generations.

Scene-Setting and Policy Context

In his scene-setting presentation, Fusanori Iwasaki, ERIA Research Fellow, outlined Malaysia’s ELV management challenges, including the dominant role of the informal sector. He advocated for policy coordination and collective benefit through a structured national framework.

Session 1: Lessons and Policies for ELV Management

Michikazu Kojima, ERIA Senior Research Fellow, opened the first session by presenting lessons from Japan’s Teshima incident – a case of illegal dumping of automotive shredder residue (ASR). He emphasised the consequences of weak regulation and the importance of proactive legislative action.

Ts. Siti Maisarah binti Mohd Pisal, Head of Aftermarket Sustainability at MARii, provided an overview of Malaysia’s current initiatives, including the AATF and the discontinued Cash-for-Clunker programme. She explained the policy vision outlined in the National Automotive Policy (NAP) 2020 and the 2024 Circular Economy Policy. Efforts to professionalise the industry include developing Malaysian Standards (MS), National Occupational Skills Standards (NOSS), and the upcoming e-Mobility Service Platform (eMSP).

Dr Kanendra Naidu Vijyakumar, EV Battery Consultant at Milan Utama, emphasised the link between circularity and decarbonisation. He noted that circular material use can significantly reduce life-cycle emissions of battery electric vehicles (BEVs). Highlighting global trends, he cited Extended Producer Responsibility (EPR) and battery passports as essential tools and called for carbon incentives to encourage recycling in Malaysia.

Session 2: Innovations from the Private Sector

Kwan Kian Heng, Director of Car Medic Sdn Bhd, introduced his company’s role in AATF operations. A video demonstration showed advanced dismantling processes, including safe handling of hazardous waste and use of the proprietary e-Dereg system for deregistration and issuance of destruction certificates – streamlining the legal recycling process for car owners.

Tae Jun Lee, Managing Director of SungEel HiTech Malaysia, presented on EV battery recycling for material recovery. His company dismantles end-of-life batteries to create black mass, which is exported to the Republic of Korea for resource extraction. The process aims to build a closed-loop system, converting finite materials into reusable components. Lee also spoke on repurposing batteries, challenges of technical variation, and the need for robust tracking systems via battery passports and EPR mechanisms.

Academic Perspective: Building a Sustainable Ecosystem

Dr Nurhasyimah Abd Aziz, Senior Lecturer at Universiti Kebangsaan Malaysia (UKM), provided a research-based perspective on sustainable automotive value chains. Emphasising a three-pillar approach – environmental, economic, and social – she called for greater collaboration amongst government, industry, and academia. She also introduced three ongoing research projects focused on ELV inspection, strategic design for sustainability, and end-of-life ecosystem development.

Closing: A Shared Commitment to Action

In closing, Reo Kawamura thanked participants and noted that the seminar’s insights would contribute to discussions on the ASEAN next-generation automotive master plan. He reaffirmed ERIA’s commitment to working with regional stakeholders to build a circular and decarbonised automotive industry.

The seminar reinforced a shared recognition of Malaysia’s progress and challenges in vehicle recycling and supply chain sustainability. Participants were encouraged to continue advancing toward a greener, more resilient automotive future for ASEAN.