Policy Alternatives for E-Waste Imports in Malaysia: Balancing Circular Economy and Trade Regulation

Malaysia faces significant challenges in managing e-waste, generating an estimated 280,000 metric tons annually, of which only 17.4% is formally collected and recycled. Limited local recycling capacity and rising demand for secondary resources have contributed to illegal imports and potential tax losses. Under the Basel Convention, international e-waste flows are tightly regulated, leaving Malaysia with limited flexibility to manage cross-border movements. This study develops a policy-oriented decision framework for evaluating e-waste imports under controlled conditions. The framework comprises two stages: Stage 1 applies a weighted regulatory screening based on four benchmarks (DOE Malaysia, Basel Convention, EU RoHS, US EPA); Stage 2 uses a facility checklist structured into nine readiness aspects. A two-stage screening process reduced 57 hazardous composition limits to 43 critical components, refined through a systematic review of 56 studies and surveys of Malaysian e-waste facilities. Validation included X-ray diffraction (Rigaku Mini Flex 600), which confirmed hazardous residues such as lead gallium fluoride and nickel in sludge samples, and expert consultations with regulators, industry, and academia. The findings provide evidence-based policy alternatives to balance circular economy objectives with trade regulation, supporting stricter oversight, harmonization of standards, and sustainable opportunities for Malaysia’s recycling sector.