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Koleksi Khas Digital
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| Abstract : |
| LETTERS: AS the war between the United States and Iran fast approaches the drawn-out peace negotiations stage, the definition of a strategic material is rapidly expanding.
What we are witnessing is not merely a geopolitical conflict, but a live stress test of global supply chains, one that in some respects is beginning to rival the disruption experienced during the Covid-19 pandemic.
The obvious starting point remains energy. Oil and gas are not just fuels; they are feedstocks for petrochemicals that shape everything from packaging to pharmaceuticals.
Disruptions around the Strait of Hormuz have once again highlighted how geographically concentrated and vulnerable these resources are.
When chokepoints tighten, the ripple effects extend far beyond crude oil. Polymers, industrial chemicals and intermediate goods begin to feel the strain.
This raises an uncomfortable but necessary question. What happens if other arteries of global trade, such as the Red Sea or the Suez Canal, are similarly disrupted?
The answer is that materials once considered mundane, like plastics, paper and scrap metals, quickly become critical inputs whose availability determines whether factories run or stall.
In this evolving landscape, Malaysia finds itself in a quietly advantageous position. The country has long been an importer of post-industrial materials, particularly plastics, for recycling and reprocessing.
What was once seen as a low-value segment of the economy is now emerging as a strategic asset. As virgin material prices rise and environmental, social and governance requirements tighten, manufacturers worldwide are scrambling to secure reliable sources of recycled inputs.
This is where ESG and the Sustainable Development Goals intersect directly with trade and industry.
Destination markets such as the European Union are imposing higher and continuously evolving standards on materials, traceability and recycled content.
Compliance is no longer an option; it is a prerequisite for market access. At the same time, global consumers are increasingly discerning.
They expect products that are not only competitively priced and of high quality, but also aligned with environmental responsibility and long-term sustainability.
This demand is cascading down supply chains and reshaping procurement decisions at every level.
Plastics are only the beginning. Paper fibres, ferrous and non-ferrous metals, and even critical minerals are seeing renewed interest in recycling as a means of supply security.
Yet Malaysia's greatest gap lies not in processing capacity, but in domestic recycling rates. Collection systems remain uneven, and the culture of recycling has yet to reach the maturity seen in countries such as Japan and South Korea.
This is not an insurmountable challenge. Cultural shifts can happen quickly, especially when driven by younger generations. The ministries of Education and Higher Education have a role to play as active nodes in a national recycling ecosystem.
Recycling should no longer be framed as a good to have, but as a strategic national project tied to economic resilience and global competitiveness.
There are also misconceptions that must be addressed. Imported recyclable materials are often cleaner than domestic waste streams, with contamination rates typically below five per cent and often closer to three per cent.
By contrast, post-consumer plastics within Malaysia tend to have higher contamination levels. Standards and enforcement, including those aligned with Sirim, are critical in maintaining quality and credibility in the sector.
Malaysia should take pride in its role within the global circular economy. This is not a peripheral activity. It sits at the intersection of manufacturing, sustainability and the knowledge economy.
With the right policies, the country can attract investment, develop talent and position itself as a hub for material innovation where sustainability meets profitability.
Geography further strengthens this proposition. Malaysia's access to both the Indian and Pacific Oceans, combined with overland connectivity to China and mainland Southeast Asia, places it in a uniquely strategic position.
In a world increasingly defined by disruptions, countries that can secure both supply chains and market access will have the decisive edge.
NORDIN ABDULLAH
Founding Chairman, Malaysia Global Business Forum |
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