The ASEAN region has recognised the urgent need to transition from a linear “take-make-dispose” economic model to a more circular and regenerative approach. With growing concerns over waste management, resource depletion, and climate change, governments are strengthening policies to encourage businesses to adopt circular economy principles.
This shift is not only driven by environmental needs but also by economic opportunities. Businesses that integrate circular models see cost savings, regulatory advantages, and enhanced brand reputation. But how are ASEAN countries supporting this transition?
ASEAN’s Circular Economy Vision & Policies
The ASEAN Circular Economy Framework, introduced in 2021, sets the foundation for regional cooperation in sustainable production and waste management. Key focus areas include:
- Sustainable Material Use: Reducing resource dependency through recycling and upcycling.
- Plastic & Waste Reduction: Implementing policies to cut down on single-use plastics.
- Green Finance & Innovation: Encouraging investments in eco-friendly business models.
ASEAN’s Circular Economy Framework: The Framework for Circular Economy for the ASEAN Economic Community (AEC). This framework outlines a long-term vision focusing on resource efficiency, waste reduction, and sustainable production. It builds upon existing initiatives and identifies priority areas for action to transition towards a circular economy.
Alignment with Regional and Global Goals: The framework aligns with the ASEAN Economic Community Blueprint 2025, which envisions dynamic, inclusive, and sustainable economic growth supported by innovation and green technology. Additionally, it complements the ASEAN Socio-Cultural Community Blueprint 2025, promoting sustainable consumption and production practices.
Country-Specific Policies Driving Change
Thailand – The Bio-Circular-Green (BCG) Economy Model
Aims to integrate biotechnology, sustainable industry, and circular economy strategies to drive economic growth. Policies include tax incentives for green businesses and funding for waste-to-energy projects.
Singapore – The Zero Waste Master Plan & Green Plan 2030
Introduced Extended Producer Responsibility (EPR) schemes for electronic waste and packaging. Stricter landfill regulations and incentives for closed-loop recycling businesses.
Malaysia – National Circular Economy Blueprint
Aim for zero waste in landfills by 2030 through EPR programs. Businesses are encouraged to adopt sustainable packaging and waste reduction strategies.
Vietnam - Law on Environmental Protection
Vietnam embedded circular economy principles into the law on environmental protection, officially defining the circular economy as an economic model aimed at reducing raw material use, extending product life, and minimising waste.
Philippines - Action Plan for Sustainable Consumption and Production
The plan promotes sustainable consumption and production, however, these do not focus on aligning with circular economy principles.
Myanmar - National Waste Management Strategy and Master Plan
The National Waste Management Plan addresses waste management with elements supporting circular economy practices, focusing on reducing waste and promoting recycling.
Indonesia - Concrete Steps for Circular Economic Initiatives in Indonesia
Indonesia’s “The Future is Circular” initiative promotes a circular economy by focusing on five key sectors: food and beverages, textiles, construction, wholesale and retail trade, and electronics (EEE).
This initiative, launched by UNDP in 2022, emphasises sustainable resource management through 10 circular economy principles: refuse, rethink, reduce, reuse, repair, refurbish, remanufacture, repurpose, recycle, and recover.
Lao People's Democratic Republic - 9th Five-Year National Socio-Economic Development Plan
While not exclusively focused on the circular economy, this plan integrates elements of sustainable development and resource efficiency.
Brunei Darussalam - Towards a Dynamic and Sustainable Economy
The blueprint emphasises sustainable economic growth, incorporating principles aligned with circular economy practices. This does not focus specifically on a circular economy.
Cambodia - National Circular Economy Strategy and Action Plan
Cambodia’s Circular Economy Strategy and Action Plan 2021, developed with UNDP, focuses on building a sustainable economy, an inclusive society, and a healthy environment. A key initiative under this plan is a pilot project for e-waste recycling, addressing electronic waste management challenges.
These policies provide a roadmap for businesses, signalling that the future economy will favour circular strategies over traditional linear models.
Business Adaptation & Compliance
As circular economy regulations tighten, businesses are adapting in several ways:
Product Redesign for Sustainability
- Companies are developing modular products that can be repaired, upgraded, and reused.
- Examples: Dell’s closed-loop plastic recycling for its laptops.
Sustainable Supply Chain Management
- Manufacturers are switching to recycled materials and ethical sourcing to meet compliance requirements.
- Examples: Nike’s Move to Zero campaign, using factory waste to create new sneakers.
Eco-Certifications & Compliance
- Businesses seek circular economy certifications such as Cradle to Cradle, Global Recycled Standard (GRS), and B Corporation to prove compliance.
Opportunities for Businesses
Emergence of New Business Models: Companies retain ownership of products and offer them as services and remanufacturing, which involves restoring used products for resale.
Investment in Green Technologies: Startups focusing on waste-to-resource technologies, renewable energy solutions, and sustainable materials. Businesses adopting these technologies can enhance their appeal to eco-conscious consumers.
Competitive Advantage through Sustainability: Early adopters of circular practices can differentiate themselves in the market, comply with international environmental standards, and facilitate easier access to global markets.
The integration of circular economy policies within ASEAN redefines business landscapes, urging companies to innovate and adopt sustainable practices. Collaborative efforts between policymakers and businesses are essential to overcome challenges and harness the opportunities presented by this economic model. Businesses are encouraged to engage with policy frameworks, invest in sustainable technologies, and explore partnerships to drive the region towards a resilient and sustainable future.
