Kuala lumpur: The European Union Circular Economy Resource Centre (EU CERC) is exploring the possibility of Malaysia becoming a strategic partner in promoting the transition to a circular economy in Southeast Asia, recognising the country’s strong policy framework and readiness to move from planning to implementation.
According to BERNAMA News Agency, Sitra international programmes director Kari Herlevi highlighted that Malaysia stands out in the region for its structured approach to sustainable industrial growth, supported by national policies and frameworks that closely align with European circular economy principles. Herlevi emphasized Malaysia’s potential to be an early mover in driving the circular economy transition in Southeast Asia, noting the importance of industry involvement to translate policies into action.
The EU CERC is operated by the Finnish Innovation Fund-Sitra and the Belgian agency for international cooperation, Enabel. The initiative began operations in early 2025 as a five-year project funded by the European Commission with 15 million euros under the Global Gateway strategy, along with two million euros in co-funding from Finland’s Ministry of Foreign Affairs. This project aims to support sustainable and green growth.
Herlevi pointed out that Malaysia already has a Circular Economy Policy Framework for the Manufacturing Sector, a strong manufacturing base, and several eco-industrial parks that enhance sustainable production. Additionally, under Malaysia’s Circular Economy Blueprint for Solid Waste, efforts are underway to introduce economic instruments that place a cost on waste generation and landfilling to encourage better waste management practices.
With the ASEAN Circular Economy Forum (ACEF) 2025 taking place in Kuala Lumpur next week, Malaysia is seen as an attractive partner with a strong willingness to promote circular economy principles among policymakers and business leaders. ACEF 2025, scheduled from October 14-17, will be hosted by Malaysia under the theme ‘Inclusivity and Sustainability,’ focusing on how circular economy solutions can drive inclusive development, reduce inequality, and foster innovation across the region.
In conjunction with the event, the Embassy of Finland in Malaysia and Sitra will co-organise an ACEF side event titled ‘Unlocking New Value in Southeast Asia Through Circular Business Models’ on October 15. This event will highlight EU CERC’s role in promoting sound and inclusive circular economy policies and business models between the EU and partner countries.
In another development, Herlevi mentioned that the potential of the circular economy in Asia will be in the global spotlight next year when the World Circular Economy Forum 2026 is held in India in autumn. It will be hosted jointly by India’s Central Pollution Control Board, which operates under the Ministry of Environment, Forest and Climate Change, and Sitra.