EU CERC Seeks Malaysia As Strategic Partner To Accelerate Circular Economy Transition

From Zufazlin Baharuddin

HELSINKI, Oct 8 (Bernama) -- 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.

Sitra international programmes director Kari Herlevi said 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.

“Malaysia has a unique role and potential to be an early mover and drive the circular economy transition in Southeast Asia. Malaysia has already developed a circular economy framework, but policies often struggle to translate into action without the active involvement of industry.

“Therefore, the EU CERC has a role in assisting business support organisations, such as industry associations, which act as a bridge between policy and the practical implementation of circular economy principles,” he told Bernama on the sidelines of the “Climate Solutions from Finland” media programme.

The EU CERC is operated by the Finnish Innovation Fund—Sitra—and the Belgian agency for international cooperation, Enabel, which began operations in early 2025.

It is a five-year project funded by the European Commission with 15 million euro (1 Euro = RM4.90) under the Global Gateway strategy, the bloc’s investment plan to support sustainable and green growth, alongside two million euro in co-funding from Finland’s Ministry of Foreign Affairs.

Herlevi said Malaysia already has a Circular Economy Policy Framework for the Manufacturing Sector and a strong manufacturing base, as well as several eco-industrial parks that enhance sustainable production.

He also noted that 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.

“This is an important step since prices and costs are generally the strongest incentive for change,” he said, adding that Finland’s experience offers valuable examples for Malaysia in applying circular economy principles.

With the ASEAN Circular Economy Forum (ACEF) 2025 taking place in Kuala Lumpur next week, he foresees Malaysia as an attractive partner with strong willingness to promote circular economy principles among policymakers and business leaders.

ACEF 2025, to be held from October 14–17, will be hosted by Malaysia as part of the country’s ASEAN Chairmanship under the theme “Inclusivity and Sustainability.”

The forum will spotlight 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, highlighting EU CERC’s role in promoting sound and inclusive circular economy policies and business models between the EU and partner countries.

In another development, he said 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.

-- BERNAMA