Malaysia pushes for 40% recycling, minister Nga calls for promotion of conscious consumption

• IGBC 2025 also looked at flood problems in ASEAN, Scandinavian design principles, sustainability being a value-add for homebuyers and investment capital with sustainability mandates.

PETALING JAYA (Aug 19): Malaysia is targeting a 40% national recycling rate, urging communities to go beyond Reduce, Reuse, Recycle by adding a fourth “R”: Rethink—promoting conscious consumption for a sustainable, responsible future.

Housing and Local Government Minister Nga Kor Ming said Malaysians must move beyond the traditional 3Rs.

“Rethink before we consume, and adopt sustainable consumption habits that will secure a more responsible future for generations to come,” he said during the International Green Build Conference (IGBC) 2025 held at One World Hotel.

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In line with the 13th Malaysia Plan, Nga said the government aims to expand the adoption of Industrialised Building Systems (IBS) and modular technologies such as PPVC (Prefabricated Prefinished Volumetric Construction) in public housing projects.

“This approach reduces construction costs, minimises noise pollution and lowers construction waste. We are also strategising to integrate Transit-Oriented Development (TOD) into future public housing.

“This will not only improve access for urban communities, especially the urban poor, to job opportunities and education, but also help ease traffic congestion in city centres.”

He added that Malaysia has pledged to develop 1,000 MADANI recreational parks nationwide by 2035.

“For the first time in our history, we have successfully transformed a safely decommissioned landfill in Bandar Tenggara, Johor, into a public park.

“This milestone not only helps mitigate environmental pollution and eliminate odour issues, but also provides the community with much-needed green spaces for recreation, leisure and social activities,” he said.

Malaysia vs Indonesia: Different flooding realities

As for the issue of floods, one of the speakers at IGBC 2025, Indonesia Agung Sedayu Division integrated city development director Kevin Lew SC said Malaysia’s flooding challenges are distinct from Indonesia’s, as Malaysia is not a low-lying country.

“The main problem here isn’t rising seawater but clogged drains during construction. While Jakarta looks to Dutch-style solutions such as decking and polder systems, only areas like Kapar in Klang face seawater intrusion risks.

“The issue in both Jakarta and Kuala Lumpur is drainage enforcement. Cities need a comprehensive water management system, not piecemeal approaches,” he told EdgeProp.

He added that Malaysia remains among ASEAN’s leaders in flood management due to the British drainage system it inherited.

“Flooding still happens occasionally but not regularly anymore. The key is maintenance — drains must not clog, and developers must take responsibility during construction,” he said.

Scandinavian design, Asian context

Meanwhile, Asia Pacific Henning Larsen director Leonard Ng highlighted Scandinavian design principles that can be adapted to Asia’s unique climate and conditions.

“The principles of regenerative design, circularity and biodiversity enhancement are universal and can be applied anywhere. But in Asia-Pacific and the tropics, we adapt them to local conditions.

“For example, the weather is hotter and more humid, so instead of looking for warmth, we focus on making spaces cooler and less humid,” he said.

He explained that design priorities differ between Scandinavia and Southeast Asia.

“In Scandinavian countries, the weather is much colder, so insulation is a big issue. Here, the opposite is true: it’s warm. Instead of closing up and making our architecture airtight, we design seamless interfaces between outdoors and indoors.

“A lot of our designs are naturally ventilated, allowing wind to flow through, which is suitable for a tropical environment.”

Ng stressed that Henning Larsen is pushing beyond sustainable design into regenerative design.

“Every country now needs regenerative design, because we’ve done so much harm to the planet,” he said.

Developers see sustainability as value-add

As for developers, S P Setia chief strategy officer Lindayani Tajudin said sustainability is no longer just a “cost factor” for Malaysian homebuyers but a value-add, especially in the upper market segment.

“Anything above RM700,000, we include energy-saving features like solar panels, which cut electricity bills and reduce reliance on cooling systems.

“Buyers see that as long-term savings, not just added costs. And banks also offer better financing for green-certified projects,” she said.

She added that green financing continues to draw strong investor demand.

“When you issue a green sukuk, the Employees Provident Fund (EPF) and insurance funds want in. That demand creates competition and naturally gives you better rates. Even foreign investors favour green shares,” she said.

Investors won’t touch non-green assets

Alpha REIT non-independent non-executive chairman and Malaysian REIT Managers Association (MRMA) honorary secretary Datuk George Stewart LaBrooy said environmental, social and governance (ESG) is reshaping investment in Malaysia as both local and foreign capital increasingly prioritise green assets.

“Our most investable capital comes from institutions like EPF and Permodalan Nasional Bhd (PNB). They already have strong sustainability mandates, so they won’t put money into heavily polluting industries or companies without ESG programmes.

“Foreign capital also won’t touch non-green assets; it’s very difficult to get investors to consider them,” he said.

The shift, he added, is already visible in real estate.

“All new big-profile projects in Kuala Lumpur are green-rated. Otherwise, they won’t command premiums in rentals or valuations.

“Green buildings also consume less energy, and with electricity prices today, it just makes common sense to own these properties,” he said.

Meanwhile, GreenRE chairman Datuk Seri FD Iskandar said that with climate change, ESG frameworks and urban transformation are reshaping how cities are planned, designed and built.

IGBC provides a vital platform for businesses, policymakers and professionals to gain practical insights from industry leaders, explore emerging technologies and position themselves as frontrunners in the sustainability movement.

“For the first time, the conference included the Academia Participation Sponsorship Programme (APSP), a component strategically designed to bridge the gap in human capital development by providing students and lecturers with practical insights into sustainability practices and their real-world applications.
“It also facilitates early talent engagement between industry leaders and Malaysia’s brightest students,” he said.

EdgeProp is media partner for IGBC 2025, themed “Adaptation Through Sustainable Innovation” and co-organised by GreenRE and REHDA.

Does Malaysia have what it takes to become a Blue Zone, marked by health and longevity? Download a copy of EdgeProp’s Blueprint for Wellness to check out townships that are paving the path towards that.