Energy, Natural Resources and Infrastructure
December 15 2025

Malaysia’s Next Wave of Waste-to-Energy Projects Market Outlook and Strategic Considerations

Malaysia’s waste-to-energy (WTE) sector is gaining traction as waste management priorities converge with the country’s energy transition and circular economy ambitions. Recent government statements and corporate disclosures point to a growing project pipeline, even as many initiatives remain at early or pre-award stages.

With the Ministry of Housing and Local Government (KPKT) targeting up to 18 WTE plants across Peninsular Malaysia by 2050, the sector presents meaningful opportunities for developers, investors, and municipal authorities. However, project success will hinge not only on policy support, but on careful commercial and legal structuring—particularly around feedstock certainty, revenue mechanisms, technology performance, financing models, and staged procurement strategies.

As WTE projects move closer to execution, the effective allocation and management of risks relating to land access, revenue shortfall, operational downtime, waste composition variability, and interfaces with co-located assets will be central to delivering sustainable and financeable outcomes.

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Authored by: Caera Lee and Debbie Tang