Environmental

impact assessment
kid 4008
Dr. Farahin Mohd Jais

WEEK 2
EIA LEGISLATION
 When eia is required?
• In simple terms, EIA applies to all forms of development, but to confuse everyone,
EIA is only required for some types of development and not others.
• Deciding on whether an EIA is required can be the source of major disputes between
developers, communities, and local authorities.
• In EU countries, the EIA regulations define two schedules of development.

✓ For Schedule 1 projects, an EIA must always be carried out.

✓ For Schedule 2 projects, an EIA must be carried out if the development is likely to
have a significant impact on the environment by virtue of its nature, size, or location.

• The definitions allow for considerable uncertainty about the need for EIA in specific
circumstances.
 When is eia required (EU legislation)?
Examples of Schedule 1 projects include:
• Major power plants
• Chemical works
• Waste disposal incineration
• Major Roads Schemes

Examples of Schedule 2 Projects include:

• Quarries and opencast
• Some intensive livestock rearing
• Overhead transmission lines
What about
Malaysia?
 Malaysia legislation
• Since the first environmental impact assessment (EIA) system was established in the USA in
1970, EIA systems have been set up worldwide and become a powerful environmental
safeguard in the project planning process.
• More than 55 countries have established formal EIA systems; some reports claim that over 100
countries have instituted some EIA measures.

• In 1988, Malaysia was quicker than many developed countries to adopt and adapt environmental
impact assessment. As a result of the Environmental Quality Act 1974 and the Third Malaysia
Plan (RMK-3), Malaysia has established a Department of Environment and an Environmental
Quality Council.

• Section 34A of the Environmental Quality (Amendment) Act 1984 extended environmental
impact assessment legislation in 1986 to require assessment for all public or private
projects likely to have significant ecological effects. In 1988, the full implementation of EIA
was made mandatory for certain industrial developments (Barrow, 1997).
ENVIRONMENTAL
LEGISLATIVE
REQUIREMENTS
 Environmental Quality Act 1974 (Amendment,
1985)
1. The Environmental Quality (Amendment) Act
1985, amended the Environmental Quality
Act, 1974. NOTE: The Environmental Quality Act
1974 was amended in 1985 to strengthen
Malaysia’s environmental regulations. This
2. Amendments include the insertion of Section amendment played a key role in enhancing
34A which requires any person intending to environmental governance and paving the
way for mandatory Environmental Impact
carry out any prescribed activity to submit Assessments (EIAs), which were officially
report on the impact on the environment to introduced in 1988.

the Director General of Environmental

Quality for examination.
 The amendment of the act was gazette on 9
January 1986 and section 34A reads as follows:
Power to Prescribe Activities
• 34A (1) The Minister, after consultation with the Council, may be
ordered to prescribe any activity which has a significant
environmental impact as a prescribed activity.

Requirement for an Environmental Impact Assessment (EIA)

• (2) Any person intending to carry out any of the prescribed
activities shall submit a report to the Director General before any
approval for the carrying out of such authority. The report shall
be in accordance with the guidelines prescribed by the Director
General. It shall contain an assessment of the impact such
activity will have or is likely to have on the environment and the
proposed measures that shall be undertaken to prevent, reduce Section 34A establishes the legal
or control the adverse impact on the environment. foundation for EIAs in Malaysia,
ensuring that major projects
consider environmental
consequences before approval.
 The amendment of the act was gazette on 9
January 1986 and section 34A reads as follows:
Approval of the EIA Report
• (3) If the Director General on examining the report and after
making such inquiries as he considers necessary, is of the
opinion that the report satisfies the requirement of subsection
(2) and that the measures to be undertaken to prevent, reduce
or control the adverse impact on the environment are adequate,
he shall approve the report with or without conditions attached
thereto and shall inform the person intending to carry out the
prescribed activity and the relevant approving authorities
accordingly.
Re-submission of Rejected Reports
• (4) Provided that where such report is not approved it shall not
preclude such person from revising and re-submitting the
revised report to the Director General for the approval.
 The amendment of the act was gazette on 9
January 1986 and section 34A reads as follows:
Multiple Reports Requirement
• (5) The Director General may if he considers it necessary require More than one
report to be submitted to him for his approval.

Prohibition on Starting Activities Without Approval

• (6) Any person intending to carry out a prescribed activity shall not carry out
such activity until the report required under this section to be submitted to the
Director General has been submitted and approved.

Compliance During Project Implementation

• (7) If the Director General approves the report, the person carrying out the
prescribed activity in the course of carrying out such activity shall provide
sufficient proof that the conditions attached to the report (if any) are being
complied with and that the proposed measures to be taken to prevent, reduce or
control the adverse impact on the environment are being incorporated into the
design, construction and operation of the prescribed activity.
 The amendment of the act was gazette on 9
January 1986 and section 34A reads as follows:
Penalties for Non-Compliance

• (8) Any person who contravenes this section shall be guilty of

an offence and shall be liable to a fine not exceeding RM
100,000 or to imprisonment for a period not exceeding 2 years
or both and to a further fine of RM 1,000 for every day that the
offence is continued after a notice by the Director General
requiring him to comply with the act specified therein has been
served upon him. In exercise of the powers conferred by
Section 34A(I) of the Environmental Quality Act 1974, the
Minister after consultation with the Environmental Quality
Council (EQC).
 ENVIRONMENTAL IMPACT ASSESSMENT (EIA)
REQUIREMENTS
1. The Environmental Quality (Prescribed Activities) (Environmental Impact
Assessment) Order 1987 stipulates that certain activities are subjected to EIA
requirements.

2. Note that the Order is not applicable to Sabah and Sarawak in certain prescribed
activities in respect of:

a) The prescribed activities [except item 7(iii)] listed in the first schedule of
the conservation of environment (prescribed activities) order 1999 under
the second supplementary of the sabah government gazette.

b) The prescribed activities listed in the first schedule of the natural

resources and environment (prescribed activities) order 1994 under part ii
of the sarawak government gazette.

However, activities listed as Items 2, 5 (a) and (b), 8, 9, 10, 12, 13(a), (c), and (d), 15,
16, and18 are still applicable to both states.
 List of prescribed activities
1. Agriculture 2. Airport 3. Drainage & 4. Land 5. Fisheries
irrigation reclamation

6. Forestry 7. Housing 8. Industry 9. Infrastructures 10. Ports

13. Power
11. Mining 12. Petroleum generation and 14. Quarries 15. Railways
transmission

17. Resort and 18. Waste

16. Transportation recreational treatment and 19. Water supply
development disposal
1. agriculture
1. Large-Scale Oil Palm Plantation Development
Description: A company plans to develop a 5,000-hectare oil
a) Land development schemes covering an palm plantation in a forested area.
EIA Requirement: Since it involves converting forest land into
area of 500 hectares or more to bring forest agricultural production exceeding 500 hectares,
an Environmental Impact Assessment (EIA) is required.
land into agricultural production. 2. Resettlement-Based Agricultural Program
b) Agricultural programs necessitating the Description: A government initiative relocates 150 families to
a rural area to establish a mixed farming settlement (e.g.,
resettlement of 100 families or more. rice, poultry, and livestock farming).
EIA Requirement: Since it involves the resettlement of more
c) Development of agricultural estates than 100 families, it requires an EIA.

covering an area of 500 hectares or more 3. Rubber Plantation Conversion to Commercial Farming
Description: A company converts 600 hectares of rubber
involving changes in types of agricultural plantation into a fruit farm for commercial export (e.g., durian,
use. pineapple).
EIA Requirement: Since it involves changing agricultural
use for an area exceeding 500 hectares, an EIA is required.
 1. Kuala Lumpur International Airport (KLIA) Expansion

2. airport Description: A project to build a new 3,500-meter runway and

terminal facilities to accommodate increased air traffic.
EIA Requirement: Since the airstrip is longer than 2,500 meters,
an Environmental Impact Assessment (EIA) is required.
a) Construction of airports (having an airstrip of
2,500 meters or longer). 2. Airstrip Development in Taman Negara National Park
Description: A small airstrip within Taman Negara is proposed to
b) Airstrip development in state and national support eco-tourism and research activities.
EIA Requirement: Since the airstrip is being built inside a national
parks. park, an EIA is required.

Bakun Hydroelectric Dam (Sarawak, Malaysia)

Description: One of the largest hydroelectric dams in Southeast

3. Drainage and irrigation

Asia, covering an area of 695 km² (69,500 hectares).
EIA Requirement: The dam and artificial lake construction far
exceeds the 200-hectare threshold.

a) Construction of dams and man-made lakes and 2. Paya Indah Wetlands Drainage Project
Description: A proposed project to drain parts of the Paya Indah
artificial enlargement of lakes with surface area Wetlands for agriculture and urban development.
of 200 hectares or more. EIA Requirement: Since it involves drainage of wetlands and
wildlife habitats over 100 hectares, an EIA is required.
b) Drainage of wetland, wild-life habitat or of virgin
3. Muda Irrigation Scheme Expansion (Kedah, Malaysia)
forest covering an area of 100 hectares or more. Description: Expansion of the Muda Agricultural Development
c) Irrigation schemes covering an area of 5,000 Authority (MADA) irrigation scheme to cover more than 5,000
hectares for paddy farming.
hectares or more. EIA Requirement: This project qualifies since irrigation schemes
over 5,000 hectares require an EIA.
 4. Land reclamation
Forest City Project (Johor, Malaysia)
Description: To develop a smart and green city, a large-scale coastal
reclamation project covering over 1,386 hectares.
EIA Requirement: A detailed EIA was required since it far exceeds the
a) Coastal reclamation involving an area of 50-hectare threshold.

50 hectares or more. 2. Penang South Reclamation (PSR) Project (Penang, Malaysia)

Description: Reclamation of 3 artificial islands covering 4,500 acres
(~1,821 hectares) for urban and industrial development.
EIA Requirement: Required a comprehensive EIA due to size and

5. fisheries impact on marine biodiversity.

a) Construction of fishing harbors. 1. Kuala Kedah Fishing Harbor Expansion (Malaysia)

Description: Expansion of an existing fishing harbor to increase fish
b) Harbor expansion involving an increase landing capacity by more than 50%.
of 50 percent or more in fish landing EIA Requirement: Required due to the significant increase in fish
landing and potential impact on coastal ecosystems.
capacity per annum.
2. Shrimp Farming Project in Tumpat, Kelantan (Malaysia)
c) Land based aquaculture projects Description: A land-based aquaculture project for shrimp farming
accompanied by clearing of mangrove involving clearing over 50 hectares of mangrove forests.
EIA Requirement: Mandatory since mangrove clearing exceeds the 50-
swamp forests covering an area of 50 hectare threshold.
hectares or more.
 6. forestry Cameron Highlands Land Development Project
a) Conversion of hill forest land to other land use (Malaysia)
Description: Conversion of hill forest land exceeding 50
covering an area of 50 hectares or more. hectares into agricultural and residential use.
b) Logging or conversion of forest land to other land EIA Requirement: Required due to potential soil erosion,
landslides, and biodiversity loss.
use within the catchment area of reservoirs used
Bakun Hydroelectric Dam Catchment Area Logging
for municipal water supply, irrigation or hydro (Sarawak, Malaysia)
power generation or in areas adjacent to state and Description: Large-scale logging activity within
the catchment area of the Bakun Dam, affecting water
national parks and national marines' parks. quality and sedimentation.
EIA Requirement: Mandatory due to logging in a
c) Logging covering an area of 500 hectares or more. municipal water supply reservoir area.
d) Conversion of mangrove swamps for industrial,
housing or agriculture use covering an area of 50
hectares or more.
e) Clearing of mangrove swamps on islands adjacent
to national marine parks.
 7. housing
Forest City Development (Johor, Malaysia)
Description: A massive housing and commercial development
covering over 1,000 hectares of reclaimed land.
EIA Requirement: Required due to land reclamation and large-scale
a) Housing development covering an area of 50 hectares urbanization.
or more. Environmental Concerns:
• Loss of coastal ecosystems (mangroves, fisheries).
• Sedimentation and pollution affecting nearby marine life.

8. industry • Potential displacement of local communities.

1. RAPID (Refinery and Petrochemical Integrated Development)

a) Chemical -Where the production capacity of each product or Project (Johor, Malaysia), Category: Petrochemicals (All sizes).
Description: A massive oil refinery and petrochemical complex in
combined products is more significant than 100 tons/day.
Pengerang, Johor, developed by PETRONAS.
b) Petrochemicals -All sizes. EIA Requirement: Required due to air emissions, wastewater discharge,
c) Non-ferrous -Primary smelting: and hazardous material handling.
• Aluminum -all sizes. Environmental Concerns:
• Copper -all sizes. • Air pollution from refinery emissions.
• Others -producing 50 tons/day and above of product. • Chemical spills and waste management issues.
• Impact on marine ecosystems due to water intake and
discharge.
d) Non-metallic -Cement -for clinker throughput of 30 tons/hour 2. Lafarge Cement Plant (Langkawi, Malaysia), Category: Non-
and above.-Lime -100 tons/day and above burnt lime rotary kiln metallic (Cement) production (Clinker throughput above 30 tons/hour).
Description: A large cement production facility that produces clinker and
or 50 tons/day and above the vertical kiln.
cement for domestic and international markets.
e) Iron and steel -Require iron ore as raw materials for production EIA Requirement: Required due to dust emissions, limestone quarrying,
greater than 100 tons/day; or-Using scrap iron as raw for and high energy consumption.
Environmental Concerns:
production greater than 200 tons /day. • Carbon emissions from clinker production.
f) Shipyards -Deadweight Tonnage greater than 5,000 tons. • Deforestation due to limestone quarrying.
g) Pulp and paper -Production capacity greater than 50 tons/day. • High energy and water usage impacting local resources.
 Pan Borneo Highway Project (Sarawak & Sabah, Malaysia)

9. infrastructure
Category: Construction of expressways and national highways.
Description: A multi-phase highway connecting Sarawak and Sabah for better
transportation.
EIA Requirement: Required due to land clearing, emissions, and habitat
destruction.
a) Construction of hospitals with outfalls into the Environmental Concerns:
•
beachfront used for recreational purposes. •
Deforestation and loss of wildlife corridors.
Soil erosion and river sedimentation.
b) Industrial estate development for medium and • Noise pollution affecting nearby settlements.

heavy industries covers 50 hectares or more. Sultanah Maliha Hospital (Langkawi, Malaysia)
Category: Construction of hospitals with outfalls into beachfront recreational areas.
c) Construction of expressways. Description: A modern public hospital developed to serve Langkawi residents and
tourists.
d) Construction of national highways. EIA Requirement: Required due to wastewater discharge into coastal areas.
e) Construction of the new township. Environmental Concerns:
• Medical waste disposal potentially affecting marine life.
• Sewage discharge into beachfront waters used for tourism.
• Traffic congestion due to increased visitors.

10. Ports
Port Klang Expansion Project (Malaysia)
Category: Port expansion involving an increase of 50% or more in handling capacity per annum.
Description:
• Port Klang is Malaysia’s largest and busiest seaport.
• Expansion projects include the development of Westports and Northport to increase
a) Port expansion involving an increase of cargo handling capacity.
• The expansion aims to accommodate larger container ships and improve logistics
50 percent or more in handling capacity efficiency.
EIA Requirement:
per annum. • Required due to land reclamation, dredging, and increased maritime traffic.
Environmental Concerns:
• Marine habitat destruction due to dredging and reclamation.
• Increased water pollution from oil spills and cargo handling.
• Displacement of coastal communities and fisheries.
• Air pollution from increased ship and truck traffic.
 Bau Gold Mine Expansion (Sarawak, Malaysia)

11. mining Category: Ore processing, including concentrating for gold.

Description:
• The Bau Gold Mine is one of Malaysia’s largest gold
a) Mining of minerals in new areas where the lease covers mining operations.
over 250 hectares. • Expansion plans include new open-pit mining and ore
b) Ore processing, including concentrating for aluminum, processing facilities to increase gold extraction.
• Gold ore is extracted and processed using gravity
copper, gold, or tantalum.
separation and cyanide leaching.
c) Sand dredging involves an area of 50 hectares or more. EIA Requirement:
• Required due to potential deforestation, water

12. petroleum
contamination, and waste disposal issues.
Environmental Concerns:
• Acid mine drainage affecting local water sources.
• Heavy metal pollution impacting aquatic ecosystems.
a) The oil and gas fields development • Deforestation and loss of biodiversity.
b) Construction of off-shore and on-shore pipelines over • Displacement of local communities.
50 kilometers in length.
c) Construction of oil and gas separation, processing, Example: Trans-Sabah Gas Pipeline (TSGP), Malaysia
Category: Construction of onshore pipelines over 50 km in length
handling, and storage facilities. Description:
•
d) Construction of oil refineries. Proposed 662-km gas pipeline project linking Kimanis (Sabah) to
Sandakan and Tawau.
e) Construction of product depots for the storage of • Designed to transport natural gas for power generation and industrial
use.
petrol, gas, or diesel (excluding service stations) EIA Requirement:
located within 3 kilometers of any commercial, • Required due to deforestation, soil erosion, and river pollution.
Environmental Concerns:
industrial, or residential areas with a combined • Deforestation in protected areas.
storage capacity of 60,000 barrels or more. • Disruption of indigenous land and wildlife habitats.
• Water contamination from pipeline leaks.
• Risk of methane emissions contributing to climate change.
 13. Power generation and transmission
a) Construction of steam generated power Jimah East Power Plant (Negeri Sembilan,
stations burning fossil fuels and having a Malaysia)
Category: Construction of steam-generated power
capacity of more than 10 megawatts.
stations (burning fossil fuels, >10 MW capacity)
b) Dams and hydroelectric power schemes with Description:
either or both of the following: • A coal-fired power plant with a 2,000 MW
. dams over 15 meters high and ancillary structures capacity.
covering a total area of over 40 hectares; • Supplies electricity to Peninsular Malaysia.
i. reservoirs with a surface area of over 400 hectares. EIA Requirement:
• Needed due to air pollution, greenhouse
c) Construction of combined cycle power gas emissions, and water usage.
Environmental Concerns:
stations. • High CO₂ and SO₂ emissions contribute to
d) Construction of nuclear-fueled stations. climate change and acid rain.
• Thermal pollution from heated
wastewater affects marine life.
• Coal ash disposal issues.
 Example: Simpang Pulai Limestone Quarry, Perak, Malaysia

14. quarries
Category: Quarrying of limestone within 3 km of residential/commercial
areas
Description:
• Limestone quarrying operation near Ipoh, a city known for
a) Proposed quarrying of aggregate, limestone, silica, its limestone hills.
• Supplies cement, aggregates, and construction materials.
quartzite, sandstone, marble and decorative building EIA Requirement:
• Required due to dust pollution, noise, and impact on
stone within 3 kilometers of any existing residential, nearby communities.

commercial or industrial areas, or any area for which a

Environmental Concerns:
• Air pollution from dust and blasting affects nearby
license, permit or approval has been granted for •
residents.
Noise and vibration impact from quarrying operations.
residential, commercial or industrial development. • Groundwater depletion due to excessive extraction.
• Destruction of natural limestone ecosystems and caves.

15. railways Example: East Coast Rail Link (ECRL), Malaysia

Category: Construction of new railway routes
Description:
• A 665-km railway project linking Kota Bharu (Kelantan) to Port Klang
a) Construction of new routes. •
(Selangor).
Part of China’s Belt and Road Initiative (BRI).
b) Construction of branch lines. EIA Requirement:
• Required due to deforestation, land clearing, and displacement of
communities.
Environmental Concerns:

16. transportation
• Deforestation and habitat loss in Pahang and Kelantan.
• Soil erosion and sedimentation in rivers.
• Displacement of indigenous Orang Asli communities.
Example: Klang Valley Mass Rapid Transit (KVMRT), Malaysia
Category: Construction of Mass Rapid Transit (MRT) projects
a) Construction of Mass Description:
• The Klang Valley MRT is Malaysia’s largest urban rail project.
Rapid Transport •
•
MRT Kajang Line (Phase 1 & 2) was completed in 2017.
MRT Putrajaya Line (Phase 1 operational in 2022, Phase 2 in 2023).
projects. • MRT Circle Line (MRT3) is under development.
EIA Requirement:
• Required due to land acquisition, tunneling, and construction impact.
 17. Resort and recreational development
Example: Resort Development in Perhentian
a) Construction of coastal resort facilities or hotels with Islands Marine Park
more than 80 rooms. Category: Development of tourist/recreational
facilities on islands in national marine parks
b) Hill station resort or hotel development covering an area Description:
• Expansion of beach resorts & diving
of 50 hectares or more. centers in Perhentian Islands.
•
c) Development of tourist or recreational facilities in Located in a protected marine park
area.
national parks. EIA Requirement:
• Required due to impact on coral
d) Development of tourist or recreational facilities on islands reefs and marine biodiversity.
in surrounding waters which are gazette as national Environmental Concerns:
• Damage to coral reefs from boat
marine parks. anchors & tourist activities.
• Pollution from untreated sewage
and plastic waste.
• Disturbance to nesting sea turtles &
marine life.
18. Waste treatment and disposal
a) Toxic and Hazardous Waste 1. Example: Kualiti Alam Waste Management Centre, Negeri Sembilan, Malaysia
i. Construction of incineration plant. Category: Toxic & Hazardous Waste – Construction of Secure Landfill Facility
Description:
ii. Construction of recovery plant (off-site). •
•
Malaysia’s first integrated hazardous waste treatment facility.
Includes secure landfill, incineration, and recovery plants.
iii. Construction of wastewater treatment plant (off- EIA Requirement:
• Required due to hazardous waste handling & potential groundwater
site). contamination.

Construction of secure landfall facility.

Environmental Concerns:
iv. • Risk of toxic leakage into soil & water.
v. Construction of storage facility (off-site). •
•
Air pollution from incineration processes.
Public health risks from exposure to hazardous materials.
b) Municipal Solid Waste
2. Example: Taman Beringin Solid Waste Transfer Station, Kuala Lumpur
i. Construction of incineration plant. Category: Municipal Solid Waste – Construction of Waste Recovery/Recycling Plant
Description:
ii. Construction of composting plant. • Largest waste transfer station in Malaysia, serving KL & Selangor.
•
Construction of recovery/recycling plant.
Handles composting, recycling & solid waste management.
iii. EIA Requirement:
iv. Construction of municipal solid waste landfall • Required due to high waste volume & potential environmental pollution.
Environmental Concerns:
facility. • Odor & air pollution affecting surrounding areas.
• Leachate generation contaminating groundwater.
c) Municipal Sewage • Pests & disease risks from unmanaged waste.

i. Construction of wastewater treatment plant.

ii. Construction of marine outfall.
 Example: Bakun Hydroelectric Dam, Sarawak, Malaysia

19. Water supply

Category: Construction of Dams or Impounding Reservoirs (Surface Area
≥ 200 ha)
Description:
• One of Southeast Asia’s largest hydroelectric dams.
• Capacity: 2,400 MW, providing power for industries & urban
areas.
a) Construction of dams or impounding • Reservoir Area: ~695,000 hectares, larger than Singapore!
EIA Requirement:
reservoirs with a surface area of 200 • Required due to large-scale land flooding & deforestation.
Environmental Concerns:
hectares or more. • Loss of biodiversity & displacement of indigenous
communities.
b) Groundwater development for • Methane emissions from decomposing vegetation in the
reservoir.
industrial, agricultural or urban water • Downstream impacts on river ecosystems & fish populations.
Example: Pahang–Selangor Raw Water Transfer Project, Malaysia
supply of greater than 4,500 cubic Category: Groundwater Development for Urban Water Supply (≥ 4,500
m³/day)
meters per day. Description:
• Transfers 1.89 billion liters/day of raw water from Pahang to
Selangor.
• Includes tunnels, reservoirs, & treatment plants.
EIA Requirement:
• Required due to large-scale groundwater extraction & land
clearing.
Environmental Concerns:
• Potential depletion of groundwater reserves.
• Impact on nearby wetlands & river systems.
• Energy-intensive operations increasing carbon footprint.
 Prescribed Activities (Sabah)

● Conservation of Environment Enactment, 1996

(Amendment, 1999) (CEE).
❑ Enacted: 1996

❑ Enforced: 1999

● Penalty: RM 50,000 and RM 1,000 for the everyday

offense of 5 years imprisonment.
 Prescribed Activities (Sabah)
1. Agricultural development
2. Forestry
3. Development of commercial, industrial and housing estates.
4. Activities which may pollute inland water or affect sources of water
supply.
5. Fisheries and activities which may endanger marine or aquatic life,
plants in inland waters or erosion of riverbanks.
6. Extraction and removal of rock materials and mining.
7. Any other activities which may damage or have an adverse impact on
quality of environment or natural resources of the State.
 Prescribed Activities (Sarawak)
● Natural Resources and Environment
Ordinance, 1949 (Amendments 1993 and 1997)
(NREO)
❑ Amended: 1993
❑ Enforced: 1994
● Second amendment: 1997
● Penalty: RM10,000 or 5 years imprisonment
 Prescribed Activities (Sarawak)
1. Agricultural development
2. Logging
3. Development of commercial, industrial and housing estates.
4. Activities which may pollute inland water or affect sources of
water supply.
5. Fisheries and activities which may endanger marine or
aquatic life, plants in inland waters or erosion of riverbanks.
6. Extraction and removal of rock materials and mining
7. Any other activities which may damage or have an adverse
impact on quality of environment or natural resources of the
State.
● The Federal Law:
Environmental Quality Act, 1974 (Amendment, 1985) (EQA)

● For Sabah :
Conservation of Environment Enactment, 1996 (Amendment, 1999)
(CEE)

● For Sarawak:
Natural Resources and Environment Ordinance,1949 (Amendments,
1993 and 1997) (NREO).
All development activities requiring EIA have been
prescribed either in:

● The Environmental Quality ( Prescribed Activities) (Environmental

Impact Assessment) Order, 1987 made under Section 34A of the EQA.

● (For Sabah) : Conservation of Environment ( Prescribed Activities)

Order, 1996 (Amendment, 1999) made under Section 5 of the CEE, or

● (For Sarawak) : Natural Resources and ( Prescribed Activities) Order,

1994 (Amendment, 1997) made under Section 1 1 A of the NREO.
List of Amendments Under the Environmental
Quality Act 1974
Key Amendment: Environmental Quality (Refrigerant
Management) Regulations 1999
• Legal Basis:
• Issued under Section 51 of the Environmental Quality Act
1974 [Act 127].
• Approved by the Minister after consultation with the
Environmental Quality Council.
• Effective Date:
• 1 January 2000
 What Triggered the Refrigerant-Related
Amendment (1999)?
Global Commitments: The Montreal Protocol (1987)
• The Montreal Protocol on Substances that Deplete the Ozone Layer was a major international agreement aimed
at phasing out ozone-depleting substances (ODS) like CFCs and HCFCs.
• As a signatory, Malaysia was obligated to implement regulations to manage and reduce harmful refrigerants.
• The 1999 amendment aligned Malaysia’s policies with the Montreal Protocol requirements.
Increased Industrial Use of Refrigerants
• The rapid expansion of industries such as air-conditioning, refrigeration, and manufacturing in Malaysia led to
a higher demand for refrigerants.
• Without proper regulations, improper handling, leakage, and disposal of refrigerants became a serious
environmental threat.
Strengthening Malaysia’s Environmental Laws
• The Environmental Quality Act 1974 was outdated in addressing refrigerant issues.
• The 1999 amendment provided a legal framework to control, regulate, and phase out harmful refrigerants
effectively.
Pressure from the International Community & Trade Partners
• Many developed countries had already introduced strict refrigerant regulations.
• Trade partners and environmental groups pressured Malaysia to adopt similar standards.
• Countries failing to comply with global environmental treaties faced trade restrictions on products using banned
refrigerants.
 Relation of Refrigerant Amendment (1999) to
Development Projects
Impact on Industrial & Commercial Projects
• Large-scale industrial estates, manufacturing plants, and commercial buildings often require refrigeration systems (e.g., for food
processing, pharmaceuticals, and cooling systems).
2️⃣ Link to Environmental Impact Assessment (EIA)
• Under EIA requirements, development projects that involve air-conditioning, refrigeration, or industrial cooling systems must now
consider:
The type of refrigerants used
Their ozone depletion and global warming potential
Proper disposal and recovery methods
• Projects using banned or harmful refrigerants may fail to get approval.
3️⃣ Green Building & Sustainable Development
• The amendment encouraged sustainable development by promoting eco-friendly refrigerants.
• New regulations pushed commercial and residential developers to adopt energy-efficient and low-GWP cooling systems.
• Green Building Standards (e.g., LEED, GBI) now require compliance with refrigerant management regulations.
4️⃣ Effects on Infrastructure & Transport
• Mass Rapid Transit (MRT), ports, and airports require large-scale cooling and HVAC (Heating, Ventilation, and Air Conditioning)
systems.
• Developers must use approved refrigerants and follow waste management guidelines to prevent environmental harm.
• Shipping and logistics projects with cold storage facilities must ensure proper refrigerant handling.
 List of amendments
Preamble
● IN exercise of the powers conferred by section 51 of the
Environmental Quality Act 1974 [Act 127], the Minister, after
consultation with the Environmental Quality Council, makes the
following regulations:

Regulation 1. Citation and commencement.

● These regulations may be cited as the Environmental Quality
(Refrigerant Management) Regulations 1999 and shall come into
force on 1 January 2000.
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Regulation 2. Interpretation.
● In these Regulations, unless the context otherwise requires:
● "approval" means approved by the Director General of
Environmental Quality;
● "approval criteria" means a criteria on the ability of a substance to
cool a system, to refrigerate, or its ozone depleting potential or
global warming potential and any other physical and chemical
characteristics important for its proposed applications;
● "destruction" means a process which, when applied to a
refrigerant environmentally hazardous substance, results in the
permanent transformation, or decomposition of all or a significant
portion of the substance;
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Regulation 2. Interpretation. (continued)
● "Director General" means the Director General of Environmental Quality referred to in section 3 of
the Act or any officer duly appointed under subsection 3(2) of the Act;
● "handling" means being involved in an activity relating to any refrigeration and air-conditioning
equipment that may result in the release of a refrigerant environmentally hazardous substance
including the repair, maintenance or adjustment of the equipment;
● "refrigerant environmentally hazardous substance" means any substance specified in the Schedule,
whether existing alone or in a mixture;
● "reclamation" means the recovery of any refrigerant environmentally hazardous substance from a
unit for reuse, recycling, reprocessing or disposal;
● "reprocessing" means the recovery of a refrigerant environmentally hazardous substance from a
unit for return to a production plant and reformation before it is made available for reuse;
● "retrofitting" means removing a refrigerant environmentally hazardous substance from a unit and
making modification so that the unit can be recharged with one of the alternative substances.
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Regulation 3. Application.
● These Regulations shall apply to a person handling a refrigerant
environmentally hazardous substance in an existing or a new
installation.

Regulation 4. Prohibition on the use of refrigerant environmentally

hazardous substance.
● The use of refrigerant environmentally hazardous substance as a
refrigerant in any new installation of a building chiller, refrigeration
system, vehicle air conditioner or an air conditioning equipment is
prohibited.[Am. P.U.(A) 395/2004]
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Regulation 5. Handling of refrigerant environmentally hazardous substance.
1. No person shall handle any refrigerant environmentally hazardous substance unless he has
received the approved training in the reclamation and recycling of any refrigerant
environmentally hazardous substance and is in possession of an approved machine for the
activity.
2. For the purpose of sub regulation (1), the Director General may, after consultation with the
manufacturers of refrigeration systems, maintain a register of approved training courses for the
reclamation and recycling of any refrigerant environmentally hazardous substance and approved
machines for such activities.

Regulation 6. Offence to vent refrigerant environmentally hazardous substance.

● No person shall knowingly vent any refrigerant environmentally hazardous substance into the
atmosphere, except with the prior written approval of the Director General.
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Regulation 7. Prohibition on moving refrigerant environmentally hazardous substance
out of Malaysia.
1. No person shall move a refrigerant environmentally hazardous substance out of
Malaysia without the prior written approval of the Director General.

2. The Director General shall not permit the movement of a refrigerant environmentally
hazardous substance out of Malaysia unless he is satisfied that the refrigerant
environmentally hazardous substance is intended for destruction or reclamation
under a process which is not available in Malaysia and that after its destruction or
reclamation the refrigerant environmentally hazardous substance or any other
resultant product will be brought back to Malaysia. However, the Director General
may impose other additional conditions as he deems fit.
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Regulation 8. Alternative.
● The Director General may approve an alternative to a refrigerant environmentally
hazardous substance if he is satisfied that the alternative is safe and meets the
requirements of the approval criteria.

Regulation 9.Training program for retrofitting activity.

1. A manufacturer of air-conditioners shall conduct a retrofitting training program
for a person involved in a retrofitting activity.
2. The manufacturer shall ensure that during the training program, the person
involved is well informed on the design of the air-conditioner system and its
purpose.
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Regulation 10. Technical expertise.

● A manufacturer of air-conditioners shall, when
required by the Director General, provide the
technical expertise and supporting assistance in a
retrofitting training program organized by the
Government.
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● SCHEDULE [Regulation 2]
● REFRIGERANT ENVIRONMENTALLY HAZARDOUS SUBSTANCES
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Major trends
in eia
 LIST OF GUIDELINES FOR EACH PRESCRIBED PROJECTS
1. A Handbook of EIA Guidelines (latest edition 2007).
2. EIA Guidelines for Coastal Resort Development Projects (latest edition 2007).
3. Guidelines for Petrochemical Industries (latest edition 2008).
4. Guidelines for Industrial Estate Development (latest edition 2007).
5. Penilaian Kesan Kepada Alam Sekeliling Bagi Pembangunan Padang Golf 1994.
6. Guidelines for Groundwater and/Or Surface Water Supply Projects 1995
7. Guidelines for Thermal Power Generation and/Or Transmission Projects 1995 (latest edition) 2009.
8. EIA Guidelines for Drainage and/Or Irrigation Projects 1995.
9. EIA Guidelines for Fishing Harbours and/Or Land Based Aquaculture Projects 1995.
10. EIA Guidelines for Dam and/Or Reservoir Projects 1995.
11. EIA Guidelines for Mines and Quarries (latest edition) 2009.
12. EIA Guidelines for Development of Resort and Hotel Facilities in Hill Station (latest edition) 2009.
13. EIA Guidelines for Development of Tourist and Recreational Facilities in National Parks (latest edition 2008).
14. EIA Guidelines for Development of Tourist and Recreational on Island in Marine Parks (latest edition 2008).
15. EIA Guidelines for Industrial Projects (latest edition 2007).
16. EIA Guidelines For Municipal Solid Waste And Sewage Treatment And Disposal Projects (latest edition 2007)
17. EIA Guidelines for Toxic and Hazardous Waste Treatment and Disposal Projects (latest edition 2007). 18. EIA Guidelines for Petroleum Industries
(latest edition 2008).
19. EIA Guidelines for Forestry 1998.
20. EIA Guidelines for Coastal and Land Reclamation (latest edition 2008).
21. EIA Guidelines for Housing and Township Development Project 2003.
22. EIA Guidelines for Agriculture 2003.
23. EIA Guidelines for Risk Assessment 2004.
24. Guidelines for the Siting and Zoning of Industries (latest edition 2008).
25. Guidelines for Prevention and Control of Soil Erosion and Siltation in Malaysia (latest edition 2008). 26. Environmental Requirements: A Guide for
Investors (latest edition 2008).
THE END…