PETALING JAYA – The circular economy has become a key topic at public debates as it can be translated into higher revenue to companies towards sustainable growth.
However, overpopulation and growing demands for goods have increased the volume of wastes as well as air, soil and water pollution that gives high negative impacts on human and ecosystem.
Therefore, it is essential to conduct new academic research and develop more sustainable economic models and strategies.
Prof. Dr. Suhaiza Hanim from the Faculty of Business and Accountancy, University of Malaya emphasised on 18 November that supply gap can be closed through sustainable consumption and production in industrial ecosystems that may result in a continual use of resources.
This can be achieved through long‐lasting design, proactive maintenance, recycling, repairing, refurbishment, and remanufacturing.
“The more efficient use and reuse of resources will lower the overall resource inputs, energy, emissions and waste leakage that could reduce negative environmental impacts without jeopardizing growth and prosperity.”
“This will balance between the economy, environment, and society in a long run. However, the situation is becoming worse when there is a lack of sustainable practices in the industrial activities. Shorter lifespan products are produced which have caused inefficient utiliation of resources while recycling rates of many raw materials are still far too low,” said Prof. Dr Suhaiza.
According to the Director General of Malaysia Productivity Corporation (MPC), Dato’ Abdul Latif Haji Abu Seman, “Even though circular economy business models are just emerging in the Malaysian context, their practicality and relevancy will entice local companies to adopt them. MPC is looking into supporting and encouraging the companies to transform into this model.
“More efforts are consolidated in ensuring the companies aware of the opportunity to turn the inefficiencies along the current linear value chain to generate revenue and identify the most promising circular business models.”
“Companies should tap into this opportunity at these trying times due to the unprecedented pandemic as it will further enhance productivity towards sustainable economic growth,” he said.
Companies are encouraged to understand the customers’ needs and shift their focuses from selling product features and functions to business value propositions. A popular business model in the circular economy is where customers pay for a service instead of a product.
MPC organised a webinar session on Translating Circular Economy Strategy into Revenue with Prof. Dr Suhaiza Hanim, Faculty of Business and Accountancy, University of Malaya as the guest speaker. A total of 117 industry players attended the virtual event.