Malaysia

Penang to accelerate transition into regional green industry powerhouse

Penang should focus on recycling, e-waste management and waste-to-energy solutions in order to strengthen its industrial competitiveness and attract future investments, Reezal Merican says

Updated 5 months ago · Published on 13 May 2026 8:49AM

Penang to accelerate transition into regional green industry powerhouse
Penang urged to develop green industry masterplan as Reezal pushes state towards e-waste and recycling hub status - May 13, 2026

by Ian McIntyre

PENANG has been urged through the development of a comprehensive masterplan centred on high-technology recycling, e-waste management and alternative energy generation.

Bertam assemblyman Datuk Seri Reezal Merican Naina Merican said the state must move decisively to capitalise on rapidly expanding opportunities within green industries, particularly as global manufacturers increasingly prioritise sustainability and environmentally responsible supply chains.

Speaking during the debate on the motion of thanks to Yang di-Pertua Negri Tun Ramli Ngah Talib’s opening address at the 15th Penang State Legislative Assembly sitting, Reezal argued that Penang’s industrial ecosystem places it in a strong position to become a national hub for advanced recycling and green technology industries.

The former federal minister, who currently serves as chairman of the Malaysia External Trade Development Corporation (MATRADE), said a structured green industry blueprint would complement Penang’s aggressive efforts to attract high-value investments in sectors such as semiconductors and medical technology manufacturing.

According to Reezal, these industries increasingly require strong environmental, social and governance commitments, particularly in areas involving recycling systems and the management of electronic waste.

“We must not lose out on the green industries which offer opportunities. The concept of waste to wealth and waste to resource should drive the state's ambitions to showcase a determination to harness green industries,” he said.

He stressed that Penang should not treat recycling and e-waste processing as isolated activities but instead integrate them into a broader industrial strategy capable of supporting the state’s manufacturing economy.

“We want a recycling industry which is driven by an effective masterplan and the treating of conventional waste and e-waste through technology,” he added.

Reezal also highlighted the growing strategic importance of waste-to-energy technology, describing it as a viable pathway towards reducing reliance on fossil fuels while generating alternative energy from solid waste.

He noted that disruptions linked to ongoing geopolitical instability in the Middle East had exposed the vulnerability of fossil fuel-dependent energy systems and reinforced the need for diversified energy sources.

However, he cautioned that large-scale waste-to-energy projects require substantial operational capacity, including daily waste intake volumes of around 2,000 tonnes and extensive holding facilities to support processing operations.

Beyond energy production, Reezal said electronic waste presents significant economic opportunities because valuable materials such as nickel, lithium and cobalt can be extracted and reintroduced into industrial supply chains.

Those commodities remain in high demand globally, particularly in sectors linked to batteries, electronics, electric vehicles and advanced manufacturing technologies.

Reezal said Penang’s decades-long industrial development gives the state a competitive advantage in establishing a sophisticated green economy ecosystem.

He emphasised that his call for a dedicated green industry strategy was rooted not merely in his role as a Penang assemblyman, but in the state’s existing industrial capacity and technological infrastructure.

“Before we are too late, Penang needs to begin in earnest efforts to tap the green industries in areas of recycling and perhaps offering alternative energy sources,” he said.

He revealed that 17 companies nationwide currently hold licences to conduct green industry activities, with seven already operating in Penang.

Nevertheless, he argued that many of these activities remain fragmented and are being pursued on an ad hoc basis rather than through a coordinated and long-term state policy framework.

According to Reezal, Penang possesses the potential to emerge as a leading regional centre for green industries, but warned that immediate planning and structured implementation are essential if the state hopes to secure a competitive advantage in the rapidly expanding global sustainability economy.

The current Penang State Legislative Assembly sitting is scheduled to conclude tomorrow. - May 13, 2026

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