DEPOSIT-REFUND SYSTEMS FOR POLLUTION CONTROL: GLOBAL LESSONS AND POLICY IMPLICATIONS FOR MALAYSIA

Abstract

Deposit-refund systems (DRS) are widely acknowledged as efficient and practical policy measures for pollution reduction alongside with the promotion of circular economy practices since they give the consumers the incentive to return used products and get the refund as a result. The Polluter Pays Principle has been operationalised by DRS and has resulted in countries with strong legislation, efficient infrastructure, and high public participation recording recovery rates of over 90 percent as seen in Germany, Norway, Canada, and South Korea. These examples show that DRS can be applied even in countries with different governance and cultural contexts. The planned introduction of DRS in Singapore in 2025 is another evidence of this growing trend in Asia. Even though Malaysia has implemented various laws and policies pertaining to waste management, it has not yet adopted DRS at the national level and consequently, due to weak governance, limited facilities, and dependence on informal waste collectors, it still records low recycling rates. The paper using international experiences as reference examines the suitability of DRS for Malaysia and suggests a gradual implementation that is backed by the provision of clear legislation, the establishment of collection and digital refund infrastructure, and the active participation of stakeholders. The adoption of DRS in Malaysia is predicted to enhance the country's waste management system, lessen the reliance on landfills, and speed up the achievement of its Sustainable Development Goals.