74

Figure 4.3: Composition of industry activities in Pasir Gudang Industrial Park.

Source: Adapted from AJM 2010

Pasir Gudang Industrial Park contains diverse type of industry activities that range from
chemical (petrochemical, oleochemical, and basic chemical), electrical and electronic,
food, metal, logistic, printing and paper, non-metallic metal, furniture, textile and
miscellaneous. Among of them, five (5) key main industry sectors of Pasir Gudang
4.3 park
industrial Industrial Symbiosis
are chemical Industry
(23%), Profile
electrical and electronic (18%), food (15%), metal
(13%) and logistic (12%), representing 81% of the entire industries in the industrial park
(figure above.

Gross Domestic This Product

section (GDP)
describes thePasir
of the background of 22 in
Gudang region selected
2025 isindustries thatbewere
expected to RM
29,397 mil. (2.35for
interviewed times
thisofstudy.
the performance
A completeindata 2010). The share
of these of future
industries primary industry
is available in Table
sector in Pasir Gudang area will remain as constant 1% (2025). Secondary industry
4.1. Among of them, four (4) industries were began their operation in 1980s,
sectors share is expected to have slight increase from 57% (2010) to 58% (2025) and
remainthirteen (13)economic
as a key industriessector
were in
in Pasir
1990s and fiveThe
Gudang. (5)share
industries were industry
of tertiary found to sector
be quite
is
likelyrecent
to be in
decline from
2000s 42% (2010)
(Figure 4.4). Ittois41% (2025). to know that some industries have
interesting
established as early as in 1980s years after the Pasir Gudang Industrial Park
developed in 1970s. This indicates that the clustering of industries in term of
industrial symbiosis emerged as early as 1980s when industries such as Ye Chiu
Smelting Sdn Bhd, See Sen Chemical (M) Sdn Bhd, Cramoil Sdn Bhd and Wilgreen
Recovery Sdn Bhd were established. The industrial symbiosis phenomenon is more
evident in 1990s where second wave of industries of about thirteen (13) industries
were set up. This process continues where it can also be seen in 2000s for the case
of Hydro Metal (M) Sdn Bhd, Eco Oils Sdn Bhd, 5E Resources Sdn Bhd, Mensilin
 9,000

8,000

7,000

+ 141%
6,000
18,000 16,998

ktCO2eq
16,000
5,000
14,000 3,564
12,111
12,000 4,000
mil. RM
10,000 261
3,000 614
8,000 7,152 58%
147
248
6,000 5,248 41% 2,000
4,000 57%
2,294
42% 1,000
2,000
97 287
0 1% 1%
0
2010 2025
2010
Primary Secondary Tertiary
Industry Residential

Transportation Structure

The figure above shows the total of carbon emission of Pasir Gudang according to the
sectors in 2010 (base year), 2025BaU (Business as Usual) and 2025CM (Counter
Measures). The total GHG emission of Pasir Gudang region in year 2010 is about 3,564
ktCO2eq, the value expectedly will increase 141% to 8,574 ktCeq in year 2025 if no
mitigation measures are taken. However, the current GHG scenario could be improve if
counter measures are introduced. An expected reduction of 28% (-2,360 ktCO2eq) could
be achieved as compared to 2025BaU.
8,000
ktCO2
Specifically the carbon emission 6,800
7,000 from the waste sector can be6,645
reduced up to 70% (-205
ktCO2eq), while the reduction for the transport is 48% (-794 ktCO2eq) and commercial
sector is also 47% (-140 ktCO 2eq) follow by residential sector 45% (-206 ktCO2eq) and
6,000
industry sector 17% (-1,015 ktCO2eq) as shown as figure below.
mil. p-km / mil. t-km

5,000
2

2
4,000

3,000 2,453
2,115
2,000

1,000

0
2010 2025

Passenger Transport Demand Freight Transport Demand

 0
2010
Low 2025BaU
Carbon Society 4
2025CM
Pasir Gudang 2025
y
ucture Greenhouse Gas (GHG) Emissions
Industry Residential Commercial Transport Waste
10,000

9,000 8,574

292

- 28%
8,000
1,671
7,000

+ 141%
6,214
299
454 87
6,000
16,998
ktCO2eq 2 877
159
5,000 2 248
3,564
12,111
4,000
261
3,000 614 5,858
7,152 58%
147
248 4,843
5,248 ktCO
41%
2 2,000
45 57%
2,294
42% 1,000
97 287
1% 1%
0
2010 2025 2
2010 2025BaU 2025CM
Primary Secondary Tertiary
Industry Residential 2
Commercial Transport Waste

Structure 2

2 2

ktCO2
6,800 6,645

2 2

2,453
2,115
Demand

2010 2025

ansport Demand Freight Transport Demand

 industry from Pasir Gudang (Mohamed, 2009). Besides, according to the Malaysia
Environmental Quality Report 2005 and 2010 documented by the Department of
Environment, air pollutant index (API) of Pasir Gudang had increased with fewer
days with good air quality (see Table 1.1). The water quality from numerous rivers of
Pasirthe
Gudang does faceriver
Pasir Gudang the problem of environmental
basin is heavily pollution.
contaminated and theBesides, according
pollution sources toarethe
Malaysia
mainlyEnvironmental Quality
industrial effluents andReport 2005(see
discharges andTable
20101.2).
documented by the
Furthermore, it isDepartment
expected
of Environment, air pollutant index (API) of Pasir Gudang had increased with fewer days
the energy and water demand and solid waste generation in Pasir Gudang will double
with good air quality (Table 1.1). The water quality from numerous rivers of the Pasir
within
Gudang a short
river basinperiod of 15 years
is heavily time from and
contaminated 303.94
theMW/year
pollutiontosources
784.53 MW/year,
are mainly
industrial effluents
76.4 MLD and discharges
to 156.4 MLD and (Table
81,9841.2). Furthermore,
tonne/year it is expected
to 174,159 tonne/yearthe(see
energy
Tableand
water1.2).
demand and solid waste generation in Pasir Gudang will double within a short
Based on the projected rapid urbanisation and industrialisation, the GHGs
period of 15 years time from 303.94 MW/year to 784.53 MW/year, 76.4 MLD to 156.4
MLDemission
and 81,984is expected
tonne/year to toincrease
174,159proportionally if the1.2).
tonne/year (Table government
Based on isthepursuing
projected
rapidbusiness
urbanisation
as usualand(BAU)
industrialisation,
urban policy.the GHGs
Hence, emission
Pasir Gudang iswillexpected
have highto GHGs
increase
proportionally
emission and if the government
pollution problemis ifpursuing BAU
appropriate urban are
strategy policy. Hence, by
not adopted Pasir
theGudang
local
will have high GHGs emission and pollution problem if appropriate strategy are not
authority.
adopted by the local authority.

Table 1.1: Air quality status of Pasir Gudang 2005 2010

Air Polluntant Good Moderate Unhealthy Very Dangerous

Index (API) of Unhealthy
(0 - 50) (51 - 100) (101 - 200) (201 - 300) (> 300)
Pasir Gudang
Year 2005
(Number of 161 194 2 - -
Days)
Year 2010
(Number of 156 204 8 - -
Days)
(Source: Department of Environment 2005: 9, 2010: 14)
 3

Table 1.2: Water quality status of rivers in Pasir Gudang 2010

River Basin River Water Quality Index Status Source
(2010)
Buluh 36 (IV) Polluted Industry
Urban,
Latoh 57 (III) Polluted
Industry
Pasir Gudang
Perembi 46 (IV) Polluted Industry
Tukang
36 (IV) Polluted Industry
Batu
(Source: Department of Environment 2010: 39)

Table 1.3: Energy demand, water demand and solid waste generation of Pasir
Gudang 2010 2015
Year 2010 2015 2020 2025
Energy Demand
303.94 365.98 427.91 784.53
(Million Watt, MW/year)
Water Demand
27,886 35,551 42,632 57,086
(MLD, Million Litre/day)
Solid Waste Generation
81,984 102,883 118,715 174,149
(tonne/year)
(Source: Khazanah Nasional 2006: 14-7, Maunsell Malaysia 2010: 3-12, Iskandar Regional
Development Authority 2010: 18)

In the light of promoting greater sustainability of Pasir Gudang, no doubt

manufacturing industry, being the main activities and key economic driver for Pasir
In Pasir Gudang,
Gudang, is in the
needpotential
of reform waste that can
to harmonise withbetheconverted into
environment. Weenergy includes
recognise the
municipal wasteof (MSW),
importance industry inindustry
economic waste
growth (IW), sludge
and social and agricultural
development. It contributeswaste
a
(AW).significant
Table 1.4 shows the amount of available waste resource under
portion to the wealth generation and job creation. However, it is essential three
different scenarios of years, i.e.: i) a baseline (BL) case for year 2005, ii) business
for industrial growth to emphasise on environmental quality too. The environmental
as usual case (BAU) for year 2025, iii) carbon emission management (CM) case
impacts from the industry sector have to be minimal as it is closely associated with
for year 2025. In general, the MSW, IW and sludge are forecasted to be markedly
the performance
increased over the years,of economy
due to theandcontinual
social dimension.
developmentWith of
thePasir
absence of good
Gudang as an
economic hub, increase of population and economic growth. On the other hand,
environment, strong economic growth and social development are difficult to
the availability
achieve. Theofmessage
AW should
is clear be
that,reduced,
a solutiondue to theto conversion
is needed of agricultural
green the existing industry
land into commercial land or industrial land.
 Table 1.4: Production of biomass in Pasir Gudang (tons/year) (Source: SJER CDP 2025).

The agricultural waste (AW) is mainly available from the palm oil industry in the
form of empty fruit bunches (EFB), palm kernel shells (PKS), mesocarp-fibres
(MF) and palm oil mill effluent (POME) which is a source for biogas, along with
oil palm front (OPF) and oil palm trunk (OPT). There are also some minor
quantities of green waste (GW). With a plantation area of about 101,585 hectares,
the abundant biomass will be collected in palm oil mills in and around Pasir
Gudang. With an estimated production of 20.2 tonne per year per hectare of fresh
fruit bunches (FFB), the total collectable FFB is up to 2,052,016 tonne (Evald,
2005). As of year 2005, the total availability of AW is 5,952,558 tonne per year.
This is expected to be reduced to 3,586,232 tonne, under the scenario of BAU in
2025. However, with the in place of carbon emission reduction activities, such as
land reserving, the availability of AW should be able to maintain at 4,773,507
tonne.

In Pasir Gudang, most of the wastes generated are dumped into open landfills. All
this open landfill should be upgraded into sanitary landfill to capture the methane
gas a source of green energy. To support the increase generation of waste in IM,
the requirement of land for waste disposal is expected to increase to approximately
660 acre by year 2025 as shown in Table 1.5.
Table 1.5: Projected Land Requirements for Solid Waste Disposal - Sanitary Landfill till
2025 (Source: IM Blueprint).

Solid waste generation in Pasir Gudang is expected to increase with an expanding

population base and increase in economic activity due to its rapid development. Figure
below shows current waste generation at baseline year (2005) and forecasted waste
generation at targeted year (2025). Type of waste: Municipal solid waste (MSW), agro-
waste (AW) and sewage sludge waste (sludge).
Table 11.3: Summary of forecasted waste generation, waste to final disposal landfill and GHG emission and its reduction by 2025
under LCS Sustainable waste management proposal (Source: IM Blueprint).