Survey Invitation - the Electrical and Electronics Sector Support Development of Malaysia's Circular Economy Roadmap for Plastics

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Survey Invitation - the Electrical and Electronics Sector Support Development of Malaysia's Circular Economy Roadmap for Plastics
Survey Invitation – the Electrical and Electronics Sector
Support Development of Malaysia’s Circular Economy
Roadmap for Plastics
3 December 2020

Consulting firm   Deloitte Risk Advisory Sdn. Bhd.
Contact person    Cheryl Khor, Partner
Address           Menara LGB, 1, Jalan Wan Kadir, Taman Tun Dr Ismail, 60000 Kuala
                  Lumpur, Wilayah Persekutuan Kuala Lumpur
Email             ckhor@deloitte.com
Survey Invitation - the Electrical and Electronics Sector Support Development of Malaysia's Circular Economy Roadmap for Plastics
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

Invitation

Context of the survey

Together with The Government of Malaysia and The World Bank, Deloitte Risk Advisory Sdn. Bhd.
(“we”) is currently conducting research to inform the development of a national Circular Economy
Roadmap (CER) for Plastics. The CER builds on existing initiatives of the government, including the
Roadmap Towards Zero Single-Use Plastics 2018-2030, and is expected to be launched in early 2021.

Electrical and Electronics (E&E) has been selected as one of the prioritised sectors under the CER
development, and within this sector your company has been identified as an important stakeholder.
In this context, we cordially invite representatives from your company to participate in this study
and share their perspectives on barriers for plastics circularity.

Your response to the survey will help us understand the E&E sector’s potential and barriers in
transitioning towards a circular economy for plastics, which will translate into our recommendations
to The Government of Malaysia on policy interventions. These interventions will be targeted at
supporting organisations like yours to adopt and scale up solutions for a more circular plastics value
chain.

Our request

Your participation in the study will entail completing the following survey in four parts:

A.   Background information.
B.   Your company’s plastics circularity practice.
C.   Barriers related to the circular economy business models.
D.   Suggested policy interventions.

It will take approximately 45 minutes to complete the survey. All data submitted through this survey
will be anonymised and aggregated before being incorporated into the CER.

In view of the project timeline, we would appreciate it if you could reply with the completed survey
by 4th December 2020. In case you have any questions about this survey or the overall study, please
don’t hesitate to contact us through Jonah Belitz at jbelitz@deloitte.com.

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.   2
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

Note to Respondents

Circular Economy is a concept where our economic activities are decoupled from the consumption
of finite resources and where waste is designed out of the system. For plastics, this concept entails
eliminating problematic and unnecessary items; ensuring that the plastics we need are reusable,
recyclable, or compostable; and keeping plastics out of the environment.1

In practice, the concept of circular economy can be manifested in ways organisations choose to
operate (through their business and operating models). In Figure 12, we demonstrate seven models
along the plastics value chain that are relevant when thinking about how to transition toward a
circular economy, in other words “circularity”, for plastics.

Figure 1. Circular economy business models

1 For detailed information on the concept of Circular Economy, please refer to the Ellen MacArthur Foundation
(https://www.ellenmacarthurfoundation.org/), a leading non-governmental organisation advocating for circularity
solutions across sectors and geographies.
2 For detailed information on the seven types of circular economy business models, please refer to the Deloitte study

(2018) based on a mapping of 50 Norwegian companies.

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.      3
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy Roadmap for Plastics

In Figure 2, we have mapped some of the plastics circularity solutions in Malaysia and abroad against the E&E sector value chain. Table 1
on the next page provides these solutions including some local and international examples. These solutions, categorised according to the
seven types of circular economy business models in Figure 1, contribute to the reduction of plastic waste in a variety of ways, such as
reducing the reliance of the sector on virgin plastics through new designs and materials, extending the lifetime of products, improving
recycling rates and quality, etc.

As part of our sector-based assessment, we invite you to share your perspective and knowledge through the survey to help us understand
other existing practices in Malaysia that can be further promoted under the CER, which will inform national planning for the years to
come.

Figure 2: Mapping of circular economy solutions for plastics in the E&E sector

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.       4
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy Roadmap for Plastics

Table 1: Local and international examples for the solutions mapped in Figure 2 (hyperlinks available in each bullet point)
   #        Type of solutions                 Local example                                 International example
            Remanufacturing of parts
            to prolong use of materials       • Remanufacturing of printer                  • Remanufactured products certified and sold by brand owners (Cisco
   1
            and reduce the use of virgin        cartridge (Cartridge World)                   Refresh, USA)
            material
                                              • Traditional repair shops
            Repair of electronic
                                              • Innovative models to increase
   2        appliances to prolong use                                                       • Online store of parts, tools and wiki on repair guidelines (iFixit, USA)
                                                accessibility of repairing services
            of materials
                                                (MobiKlinik)
            Take-back scheme to
   3                                          • Free Mail-Back Recycling programme through pick-ups for households (Dell)
            improve collection
            Innovative collection model       • Electronic waste recycling service          • E-waste collection solution for communities without adequate
   4
            to improve collection               with free pickup (Blue Bee)                   recycling infrastructure (Close the Loop, Netherlands)
            Resale of used appliances         • Second hand marketplace for E&E             • Resale of second-hand phone collected through the platform, with
   5
            to prolong use of products          products (Carousell)                          some refurbished before the resale (Mazuma, UK)
                                                                                            • One type of recycled plastics used in headsets and speakers has
            Eco-design with alternative
                                                                                              recycled material usage rate of 65% (Sony, Japan)
            material, reduced material,
                                                                                            • Modular product concept aiming at extending the lifetime of the
   6        or modular design that            •/
                                                                                              whole product (Fairphone, Netherlands)
            facilitates repair and
                                                                                            • Recycling and Innovation Center built to support R&D on closed-loop
            refurbishment
                                                                                              design (HP, Brazil)
                                                                                            • Refurbishment centers for post-consumer video games, gaming
            Refurbishment to prolong
                                                                                              consoles, smartphones and tablets, and other electronic devices to
   7        use of materials and reduce       •/
                                                                                              achieve factory condition (GameStop, USA)
            use of virgin materials
                                                                                            • Refurbishment of returned / defected products (eStoks, Brazil)
            Product as a service to
            increase utilisation of
                                                                                            • Subscription service of cartridge (HP Instant Ink, USA)
   8        products, reduce material         •/
                                                                                            • Rental of high-end equipment (Fat Lama, UK)
            demand and strengthen
            reverse logistics

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.           5
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

Furthermore, in Table 2, we provide an overview of the policy intervention types that can be
considered within the context of promoting plastics circularity in Malaysia. This table serves as a
frame of reference when answering the question under Section D, referring to your suggested policy
interventions for removing the existing barriers.

Table 2: Types of policy interventions providing an enabling environment
 Category                                                       Sub-category
                                                                Research
 Education, Information, and Awareness
                                                                Information & Education Campaigns
                                                                Data & Information Sharing
 Collaborative Platforms                                        Matchmaking Platforms/Labs
                                                                Voluntary Agreements
                                                                Direct Financial Support
 Business Support Schemes                                       Indirect Financial support
                                                                Technical Support
                                                                Public Procurement
 Public Procurement and Infrastructure
                                                                Investment in Public Infrastructure
                                                                Strategies, Roadmaps, Targets
                                                                Monitoring & Enforcement
                                                                Environmental & Social Assessments and Permits
                                                                Spatial Planning
 Regulatory and Legislative Framework                           Bans
                                                                Performance Standards
                                                                Technology Standards
                                                                Labelling / Taxonomy
                                                                Others
                                                                Positive price incentive
                                                                Negative price incentive
 Economic and Fiscal Framework                                  Public-Private Partnerships
                                                                Tradeable Permits
                                                                Extended Producer Responsibility (EPR)

[The remainder of this page has been left blank intentionally]

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.   6
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

Survey

A.       Background information (5 minutes)

1. Please provide the following information on your business in Malaysia.

 Question                                     Response

 Name of the business
 Total operating revenue in Malaysia,
 from the latest financial year
 Number of employees in Malaysia

 Name of contact person

 Job title and department

 Email

 Telephone

2. Are you interested in participating in a two-hour Focus Group Discussion with other
     representatives from the E&E sector to provide your comments on the preliminary findings of
     this research? The session is expected to take place at the end of November.

     ☐Yes
     ☐No

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.   7
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

B.        Your company’s plastics circularity practice (10 minutes)

3. Does your company in Malaysia adopt any plastics circularity-related solution that is not
   captured by Figure 2 (p.4)?

      “Solutions” here are defined as technologies, projects, and initiatives by one or multiple entities
      that help to circulate plastics in the economy.

      If so, please describe in detail the products or type of plastic that this solution addresses, the
      activities in the value chain that it focuses on, and the stakeholders it engages.

      ☐Yes. Please insert your description below, and attach any publicly available web link, concept
      note, or other material related to the solution in Malaysia, if available.
      ☐No

4. Based on Figure 2 (p.4), please populate the following table by:

a. describing additional E&E-specific solutions you have observed in Malaysia or overseas,
   including the products or type of plastic that this solution addresses, the activities in the value
   chain that it focuses on, and the stakeholders it engages.
b. providing the name of the company/ies that has/have adopted the solution.
c. providing the solution’s main geographic market(s).

             4a                                                    4b                               4c
 Solution
             Description of the solution                           Company(ies)                     Geographic
 no.
                                                                                                    market(s)

 S1

 S2

 S3

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.   8
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

C.        Barriers related to the circular economy business models (20 minutes)

5. Based on Figure 1 (p.3), please populate the following table by:

a. identifying up to three models that you think have the greatest potential in increasing plastics
   circularity in E&E.

      You may think of “potential” in terms of the model’s foreseeable impact on the extent to which
      your sector is reliant on virgin plastic-based products, parts, or components and the extent to
      which plastic pollution from these can be avoided.

b. allocating 10 points among the selected models to represent their relative potential (more
   points represent higher potential).

      Please make sure that if you select three models, the points allocated for M1, M2, and M3 sum
      up to 10. Likewise, if you select two, the points allocated for M1 and M2 sum up to 10.

c. explaining why you think these models have the greatest potential.
d. identifying the risks that may be associated with scaling up these models in the sector.

      An example is provided in the first row for your reference.

 Model      5a                       5b                           5c                             5d
 no.        Circular   economy       Allocated points for         Why this model has             Risks associated with
            business model           models                       potential                      the model
 M0         Recycling                5/10 (the rest is reserved   The sheer volume of            Recovery sites built for
                                     for other models)            plastic parts currently        these plastic parts, if
                                                                  used for our x product         not properly controlled,
                                                                  calls for a robust recycling   can become unhygienic
                                                                  scheme in order to reduce      and    damage        the
                                                                  the plastic footprint in our   surrounding
                                                                  operations.                    environment.
 M1

 M2

 M3

6. Do you have additional comments on these circular economy business models, in case your
   inputs do not fit into the previous table?

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.          9
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

      ☐Yes. Please insert your comments below.
      ☐No

7. For each of the models (M1, M2, M3) identified in Question 5, please populate the following
   table by:

a. describing in detail up to two barriers that you think are hindering the scale-up of each model
   in your sector.

      You may think of barriers in terms of these considerations: market/economic conditions,
      technology factors, the regulatory environment, and cultural/social considerations.

b. allocating 10 points among each model’s barrier(s) to represent their relative significance (more
   points represent higher significance).

      Please make sure that the points allocated to the barriers for each model (e.g. B1.1 and B1.2 for
      M1, if two barriers for the model are identified) sum up to 10.

      An example is provided in the first two rows for your reference.

                                7a                                                                    7b
 Model no.      Barrier no.                                                                           Allocated points
                                Description of barrier
                                                                                                      for barriers
                                The current cost of recycling the plastic parts in x product is too
                B0.1            high compared to the value recovered, since the plastic parts are     8/10
                                not designed to be easily recyclable.
 M0
                                There are no qualified vendors in Malaysia who can provide
                B0.2                                                                                  2/10
                                recycling of our plastic parts in x product.

                B1.1

 M1

                B1.2

 M2             B2.1

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.       10
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

                                7a                                                                    7b
 Model no.      Barrier no.                                                                           Allocated points
                                Description of barrier
                                                                                                      for barriers

                B2.2

                B3.1

 M3

                B3.2

8. Do you have additional comments on these barriers, in case your inputs do not fit into the
   previous table?

      ☐Yes. Please insert your comments below.
      ☐No

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.       11
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

D.        Suggested policy interventions (10 minutes)

9. For each of the barriers (B1.1 to B3.2) identified in Question 7, please populate the following
   table by:

a. describing in detail up to two policy interventions that you think are the most effective in
   removing or mitigating each barrier.

      You may refer to Table 2 (p. 6) for an overview of policy intervention types.

b. allocating 10 points among each barrier’s suggested policy intervention(s) to represent their
   relative effectiveness (more points represent higher effectiveness).

      Please make sure that the points allocated to policy interventions for each barrier (e.g. P1.1.1
      and P1.1.2 for B1.1, if two policy interventions for the barrier are identified) sum up to 10.

      An example is provided in the first two rows for your reference.

                                 9a                                                              9b
 Model      Barrier     Policy
                                                                                                 Allocated points for
 no.        no.         no.      Policy intervention
                                                                                                 policy interventions
                                 To set up an incentive scheme to promote research and
                        P0.1.1   development in alternative materials and/or design that         6/10
                                 make the plastic parts in x product more recyclable.
 M0
            B0.1
                                 To launch an awareness campaign among the public so that
                        P0.1.2   there is higher consumer appetite for products with recycled    4/10
                                 content.

                        P1.1.1
            B1.1

                        P1.1.2

 M1

                        P1.2.1

            B1.2

                        P1.2.2

 M2         B2.1        P2.1.1

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.      12
Survey Invitation – the Electrical and Electronics Sector | Support Development of Malaysia’s Circular Economy
Roadmap for Plastics

                                 9a                                                              9b
 Model      Barrier     Policy
                                                                                                 Allocated points for
 no.        no.         no.      Policy intervention
                                                                                                 policy interventions

                        P2.1.2

                        P2.2.1

            B2.2

                        P2.2.2

                        P3.1.1

            B3.1

                        P3.1.2

 M3

                        P3.2.1

            B3.2

                        P3.2.2

10. Do you have additional comments on these policy interventions, in case your inputs do not fit
    into the previous table?

      ☐Yes. Please insert your comments below.
      ☐No

This is the end of the survey. Thank you for your participation.

Please contact Jonah Belitz (jbelitz@deloitte.com or +60 17 618 4710) if you need clarifications about the survey.      13
Contact information

 ckhor@deloitte.com

 Cheryl Khor
 Partner, Deloitte Risk Advisory Sdn. Bhd.

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