Vulnerable to pollution, industrial waste issues
Published on: Sat, Jul 19, 2025
By: Sisca Humphrey Text Size: Clive said liability limits commonly purchased by companies are often insufficient to cover potential environmental claims. Kota Kinabalu: Many Malaysian businesses may lack adequate insurance protection against pollution and industrial waste incidents, according to a briefing by SP&G Gallagher Insurance Brokers Sdn Bhd (SP&G) Environmental Specialist Clive Goddard. Clive said liability limits commonly purchased by companies are often insufficient to cover potential environmental claims.
Advertisement 'It is not unusual to see liability cover capped at RM10 million or less. In some cases, this may not reflect the scale of possible losses,' he said at the Marim Conference 2025 in here on Tuesday. He stated the 1982 Bukit Merah rare earth processing case as an example of long-term environmental damage. 'The incident involved radiation exposure in a Perak town, with cleanup efforts still ongoing decades later,' Clive said. Clive also noted that the costs of decontamination have exceeded RM300 million and most of the burden did not fall under insurance coverage. More recently, the Puchong pipeline fire raised concerns about the state of underground infrastructure and the potential consequences of ground subsidence. He cited that similar issues have occurred with a gas pipeline between Sabah and Sarawak, which experienced several structural failures due to shifting soil. 'Some of these cases have not been widely reported, but they are known within the industry,' he added. Another emerging issue mentioned during the session was the presence of PFAS chemicals in consumer and industrial products. Known for their resistance to breakdown, these substances are increasingly found in water sources and human blood samples globally. Clive said they present regulatory and liability challenges that are still being assessed. He also emphasised on carbon capture and storage (CCS), referencing Petronas' Kasawari project in Sarawak, which aims to store carbon dioxide extracted from offshore gas operations. The initiative is one of several being explored to manage emissions from oil and gas production. Despite these developments, he said there is still limited uptake of comprehensive environmental liability insurance among local firms. 'Policy wordings are often narrow. They may exclude gradual pollution, statutory clean-up costs and other exposures that companies assume are covered,' he said. SP&G Gallagher, part of the global Gallagher insurance group, is encouraging businesses to review their coverage in light of current industrial and legislative changes. This includes recent amendments to the Environmental Quality Act and proposals under public consultation that may place more responsibility on site owners. 'Companies need to be clear on what their policies do and do not cover. This is especially relevant as industrial activity increases under national development plans,' he said. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available.
Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
6 minutes ago
- The Star
Jitters over Jakarta's land seizure
THE Indonesian government is moving to confiscate palm oil plantation land parcels that was either illegally developed or linked to corruption investigations. And Malaysian plantation companies operating there are having the jitters. Industry insiders and analysts say Malaysian plantation companies face the risk of losing some of their estate land as Jakarta's forestry task force has set a target of confiscating three million hectares by August.
New Straits Times
6 minutes ago
- New Straits Times
NST Leader: Agrofood sector set for major reforms under 13MP
THE 13th Malaysia Plan (13MP) has big ideas for the agrofood sector. High time, we say. It has been treated as a stepchild since the country transitioned to manufacturing in the 1980s. That should change by 2030, when the 13MP reforms the sector, leading to RM58 billion in value creation. Self-sufficiency rates are also being scaled up to 80 per cent for rice, 98 per cent for fisheries, 83 per cent for fruits, 79 per cent for vegetables, 140 per cent for poultry, 123 per cent for eggs and 50 per cent for beef and buffalo meat. Ambitious? Yes, given that the Agriculture and Food Security Ministry has to hit the targets within five years, on top of resolving numerous issues plaguing the agrofood sector. Surely, an unenviable task. Land is a big ticket item, with most of what is available being devoted to industrial crops such as oil palm and rubber, because they are more profitable. In 2020, 7.6 million hectares of arable land was used for agriculture, of which 5.2 million was dedicated to industrial crops. Little wonder, our Asean neighbours' agrofood products are everywhere. Former director of Malaysian Agricultural Research and Development Institute, Rozhan Abu Dardak, provides another reason why this is so in his article published in the Food and Fertilizer Technology Centre Agricultural Policy Platform website on April 14: Vietnam dedicated 33 million hectares for rice cultivation. Thailand 9.2 million hectares, Indonesia 10.6 million hectares and the Philippines 5.6 million hectares. What about Malaysia? Of the 996,950ha dedicated to the agrofood sector, only 373,383ha is being used to cultivate rice. The rest is used for growing fruits, other food crops and vegetables, the last, a measly 64,220ha to work on. If that is not enough, the agrofood sector has to compete with industries and housing for land. More land for agrofood should certainly be a reform to aim for. There is one reality our policymakers often miss. Malaysia is a land of small things. Like the small and medium enterprises (SMEs) that dominate the country's economy, so do small-scale farms. According to Rozhan, more than 90 per cent of Malaysian farmers own small plots of land, averaging 2.5ha per person. Logically, bigger means better yields. But that doesn't mean technology can't be made to work on small plots to increase yields. Like we have learnt to live with SMEs, we must learn to live with small-scale farms. What the agrofood sector reform should focus on are the farms themselves: the what and how of the trade. The skyrocketing prices of farm inputs, too, are making farming a challenging vocation. Farmers need help. Providing subsidies to those who deserve it is one way. The 13MP's move to incentivise young agroentrepreneurs takes the reform to a good place. We are a nation of old farmers, most of whom are in their 60s. At that age, farming is a struggle. Malaysians will be keeping a keen eye on the agrofood sector reforms, because what happens in the farms will determine whether or not we have home-grown food on the table.
The Star
2 hours ago
- The Star
King's historic state visit to Russia underscores deepening bilateral ties, says Ambassador
MOSCOW: The state visit by His Majesty Sultan Ibrahim, the King of Malaysia, to Russia from Aug 5-10 has been described as the highlight of the diplomatic ties between the two countries, said Malaysia's Ambassador to Russia Datuk Cheong Loon Lai. He said the visit is the highest-level ever made and the first by a Malaysian head of state to Russia since diplomatic relations were established in April 1967. "His Majesty's state visit, at the invitation of Russian President Vladimir V. Putin, is a recognition of the five decades of diplomatic ties with Malaysia, which was among the earliest Asean countries to establish ties with the then Soviet Union. "This visit also reflects the crucial role of the institution of the Yang di-Pertuan Agong in the context of international relations,' he told Bernama here on Sunday (Aug 1) in conjunction with Sultan Ibrahim's state visit. Cheong said the visit will begin in Moscow, where His Majesty is scheduled to hold an official meeting with Putin at the Grand Kremlin Palace. Both leaders are expected to discuss potential cooperation in the fields of trade and investment, higher education, technology and innovation, people-to-people ties, digital transformation, agriculture and food security, as well as regional and international issues. "This highest-level visit will certainly have a high impact in increasing the momentum and positive trend of bilateral relations between Malaysia and Russia. "It sends the message that Malaysia is serious and committed to efforts to strengthen and improve bilateral relations with Russia in all fields, particularly strategic cooperation and people-to-people ties,' he said. Sultan Ibrahim is scheduled to arrive in Moscow on Tuesday (Aug 5) and will be accorded a state welcome ceremony at the Kremlin on Wednesday (Aug 6), before holding an official meeting with Putin and attending a state banquet hosted by the Russian President. His Majesty is also scheduled to receive an audience from the Russian Automotive Technology Development Company as well as the Tochka Kipeniya Technology and Innovation Hub. On Friday (Aug 8), Sultan Ibrahim will travel to Kazan, the fifth largest city in Russia, to receive an audience from the Rais (Head) of the Republic of Tatarstan, Rustam Minnikhanov, at the Kazan Kremlin. Both parties are expected to discuss potential collaboration in the trade, investment, halal industry sectors and agricultural technology. His Majesty is also scheduled to attend a reception ceremony hosted by Minnikhanov and visit the Kazan Helicopter Plant to observe the manufacturing operations of civilian, defence and rescue helicopters. Russia is currently Malaysia's ninth-largest trading partner among European countries and 28th globally, with bilateral trade valued at RM11.46bil (US$2.48bil) in 2024. For the period January to June 2025, Malaysia-Russia trade volume was recorded at RM4.13bil (US$945.7mil). — Bernama
