The European Union Circular Economy Resource Center (EU CERC) is exploring the possibility of making Malaysia a strategic partner in driving the transformation of the circular economy in Southeast Asia, recognizing Malaysia’s comprehensive policy framework and its readiness from planning to implementation.
Kari Herlevi, International Program Director of the Finnish Innovation Fund (Sitra), pointed out that Malaysia stands out in the region by systematically promoting sustainable industrial growth, and that its national policies and frameworks are highly aligned with European circular economy principles.
"Malaysia has a unique role and potential, and is poised to become a pioneer and promoter of the circular economy transformation in Southeast Asia; Malaysia has already established a circular economy framework, but if there is a lack of active industry participation, policies often fail to translate into concrete actions.
"Therefore, the center will assist industry associations and other business support organizations, as these organizations play a key role between policy formulation and corporate implementation of the circular economy."
He said this in an interview with Bernama during the "Finnish Climate Solutions" media event.
The EU Circular Economy Resource Center is jointly operated by the Finnish Innovation Fund and the Belgian international cooperation agency Enabel, and began operations earlier this year.
This is a five-year project, funded by the European Commission through the “Global Gateway” strategy with €15 million (RM73.5 million), supplemented by €2 million (RM9.8 million) in co-financing from the Finnish Ministry of Foreign Affairs.
Herlevi mentioned that Malaysia already has a circular economy policy framework for manufacturing and possesses a strong manufacturing base, along with several eco-industrial parks to promote sustainable production.
He said that according to the Malaysian Solid Waste Circular Economy Blueprint, the government is working to introduce economic instruments, such as imposing fees for waste generation and landfilling, to foster better waste management practices.
"This is an important step as price and cost are often the strongest drivers for transformation. Finland’s experience can provide valuable insights for Malaysia in implementing circular economy principles."
In addition, with the ASEAN Circular Economy Forum (ACEF) 2025 scheduled to take place in Kuala Lumpur from October 14–17, he envisions Malaysia becoming a highly attractive partner, with a strong willingness to promote the circular economy among policymakers and business leaders.
The forum will focus on how circular economy solutions can drive inclusive development, reduce inequality, and promote innovation across the region.
In conjunction with the forum, the Finnish Embassy in Malaysia and Sitra will co-host an ACEF side event on October 15, titled “Unleashing New Value in Southeast Asia through Circular Business Models,” to showcase the role of the EU Circular Economy Resource Center in promoting sound and inclusive circular economy policies and business models between the EU and partner countries.
On the other hand, he noted that at the 2026 World Circular Economy Forum to be held in India next autumn, the potential of Asia’s circular economy will be in the global spotlight.
The forum is co-hosted by India’s Central Pollution Control Board under the Ministry of Environment, Forest and Climate Change, and Sitra.