Latest news with #DanaImpak
The Star
8 hours ago
- Business
- The Star
BUILDING GLOBALLY COMPETITIVE FIRMS TO DRIVE MALAYSIA'S ECONOMIC DEVELOPMENT
MALAYSIA'S economic journey since the 1960s has been marked by progress, diversification and industrialisation. The transition to high-income status is steadily being pursued through bold policy choices and long-term planning. Khazanah Nasional Bhd (Khazanah), through its Dana Impak initiative, endeavours to change that trajectory by fostering homegrown firms that can compete globally, while drawing lessons from the world's most successful economies. Dana Impak is the cornerstone of Khazanah's Malaysia Investment Strategy, anchored on 'A Nation That Creates' (ANTC) framework, with the aim of driving Malaysia into the next phase of economic transformation. The five themes under ANTC are Transforming Firms, Energy Transition, Connectivity, Digitalisation and Community Development. Under the ANTC framework, Dana Impak is positioned to support transformation across firms of all sizes toward enhanced competitiveness, resilience and socio-economic impact. 'Dana Impak is not just about deploying capital; it's about building the conditions that allow globally competitive firms to emerge and thrive – at all stages of the company lifecycle,' says Datuk Amirul Feisal Wan Zahir, managing director of Khazanah. Learning from the Asian Miracles Reflecting on Malaysia's economic evolution in the 1960s, the country's top exports were largely raw commodities – natural rubber, tin and alloys, and iron ore. Today, Malaysia exports electrical and electronics products, fuel and machinery. This shift reflects the country's progress in diversifying its economy, economic complexity and sophistication. However, Malaysia has not yet made the final leap to high-income status – also often referred to as being stuck in the 'Middle Income Trap'. While it is not necessarily a 'trap' per se, in a 2019 International Monetary Fund (IMF) study, it was concluded that only 16 out of 18 economies successfully made the leap between 1960 and 2014. These success stories, including the 'Asian Miracles' of Japan, Korea and Taiwan, deliberately pursued industrialisation through bold state-driven strategies. Amirul Feisal says: 'There's plenty of literature on Asian Miracles, but a recent, very accessible, work is by Joe Studwell. His book, How Asia Works, provides a good historical review of East Asian economic development with a three-step recipe of land reform, export-oriented state-driven industrial policy, and financial direction.' The Asian Miracles didn't just grow by accident. These nations systematically built manufacturing capabilities, invested heavily in education and fostered export-led industries. The critical difference lies in what happens next: they succeeded because they deliberately leveraged the foreign investments and partnerships as stepping stones to build domestic champions like Samsung, TSMC (Taiwan Semiconductor Manufacturing Company) and Nissan. In contrast, while Malaysia's early industrialisation push in the 1970s and 1980s yielded growth, we remain as an outsourced hub for multinationals (MNCs) rather than producing competitive local champions. Development through public and private partnerships Across all contexts – industrial success has never been left purely to market forces. It has always been an intentional combination of private ambition and public commitment. Where Japan, Korea and Taiwan developed globally competitive companies that could take on the United States and Germany, Malaysia's journey has been more uneven – with pockets of success, but fewer domestic firms reaching that global scale. The domestic companies of the Asian Tigers did not succeed on their own. The governments of those economies undertook all kinds of state interventions to support the critical industries that drive long-term economic growth. Firms either met export targets or were forced to be subsumed or consolidated under better-performing firms. The states did not let zombies survive – it was survival of the fittest. And this isn't unique to Asia. In every successful case – whether the Asian Tigers, China, the United States or Europe – some form of state support has always been present to spur national industrial strength. The United States had the Department of Defense and NASA to catalyse innovation and commercial spin-offs. The European Union channels billions into priority sectors through coordinated strategic investments. China's rapid rise has been fuelled by sweeping state support and long-term national planning. South Korea's government actively steered its conglomerates – like Samsung and Hyundai – towards global leadership. In this instance, Malaysia must take a similarly intentional path where meaningful development depends on private ambition and public commitment. That means blending patient capital, institutional strength, and entrepreneurial spirit to build future-ready Malaysian firms capable of competing on the world stage. Turning vision into action Dana Impak represents Khazanah's commitment to this philosophy. Its aim is not just to invest, but to lay the foundation for globally competitive Malaysian firms across the spectrum – from nimble start-ups to mid-sized enterprises and established corporates. Amirul Feisal says: 'Dana Impak plays multiple roles: identifying gaps in the ecosystem, deploying patient capital where markets underserve, investing in talents and helping crowd in private investors and general partners (GPs) to scale promising ventures. Initiatives like Antler, Plug and Play, and 42 Malaysia show this commitment in action.' This is also in line with our commitment in supporting the Ekonomi Madani framework, which are to drive innovation at the frontier while lifting all Malaysians and restore Malaysia's leading economic position in Asia. Economic progress, according to Khazanah, requires both raising the ceiling of competitiveness and the floor of inclusion. 'Because we're close to the ground, we also have a role to play in supporting government policy. As we invest and engage with the ecosystem, we continue to identify the areas of opportunities. This gives us the opportunity to share those insights with policymakers and help shape better, more targeted decisions. 'It is clear that we should expect a fair amount of challenges, learnings and failures along the way. The question is whether we can fail in a smart way and learn from those lessons.' Jelawang Capital: A new chapter for venture capital in Malaysia A key component under Dana Impak is Jelawang Capital, the National Fund-of-Funds designed to support the growth of Malaysia's venture capital (VC) ecosystem. Despite Malaysian entrepreneurs' talent, access to early-stage and growth capital remains fragmented. Jelawang Capital addresses this by backing both emerging Malaysian fund managers and drawing in global VCs. 'For Malaysia to unlock its next wave of growth, we need more than ideas – we need a VC ecosystem that nurtures bold ideas, rewards ambition and transform local potential into global success stories,' says Amirul Feisal. 'Globally, VC has disproportionate impact. In the United States, VC-backed companies represent less than 0.5% of all new firms, yet account for nearly 50% of those that go public. Malaysia needs this virtuous cycle – where successful VCs reinvest knowledge and returns into new ventures – to unlock a vibrant, self-sustaining startup ecosystem. 'With initiatives like Jelawang Capital, the aim is to bridge gaps in early and growth-stage funding, attract international expertise, and develop homegrown fund managers – building an ecosystem where Malaysian startups can thrive, scale and compete on the world stage,' he adds. Through the Emerging Fund Managers' Programme (EMP) and the Regional Fund Managers' Initiative (RMI), Jelawang Capital supports new Malaysian fund managers as well as targeting international VCs to bring their expertise into Malaysia. A VC-driven economic future Khazanah believes VC is central to Malaysia's long-term transformation. Beyond funding, VC builds skills, connections and ambition – creating new industries, jobs and export opportunities. Successful startups drive a multiplier effect across the economy: hiring, supplier networks, reinvestment and inspiration for future innovators. 'Malaysia's future competitiveness depends on nurturing not just firms, but the funders, mentors and networks that help bold ideas become world-class businesses,' says Amirul Feisal. Over time, this ecosystem can reduce Malaysia's reliance on a few large industries, building a more resilient and diversified economy. Jelawang Capital signals a clear message: Malaysia is open for business and is seeding the future economy today. But Khazanah acknowledges this ambition requires a whole-of-nation effort. No single institution, government-linked investment company or policy can succeed alone. Progress depends on partnership – between private firms, public agencies, regulators, fund managers, NGOs, foundations and academia. Only by working together can Malaysia unlock its full economic potential. As both a catalyst and connector, Khazanah remains committed to building globally competitive Malaysian firms. As Khazanah continues to shape Malaysia's future through its ANTC framework, Dana Impak will remain a key catalyst in creating high-value jobs and fostering innovation through strategic investments and partnerships.
Borneo Post
03-05-2025
- Business
- Borneo Post
ERTH: A social enterprise out to make recycling electronics easier, more rewarding, more widely understood
Despite Malaysia having over 50 licensed e-waste recovery facilities and robust infrastructure, the country's recycling rate remains stubbornly low – hovering around just 30 to 35 per cent. — Bernama photo IN 2018, one brief moment would change the course of Mohamed El-Fatatry's life – and potentially, the future of Malaysia's e-waste crisis. As he sat watching a National Geographic feature on the illegal influx of plastic waste into Malaysia, a powerful message flashed across the screen. 'Stop sending your waste to us.' The voice was firm, the frustration unmistakable. It was Malaysia's former woman minister speaking not just to the world, but to anyone willing to listen. Most viewers would forget the clip moments later, but for Mohamed, 40, a Finnish entrepreneur with Arab roots and a heart wired for purpose, those words struck like a bolt of lightning. It was not just a statement; it was a summons. Determined to learn more, he uncovered a troubling paradox. Despite Malaysia having over 50 licensed e-waste recovery facilities and robust infrastructure, the country's recycling rate remained stubbornly low – hovering around just 30 to 35 per cent. The issue was not one of capacity, but of utilisation. 'I kept wondering, where do people dispose of their old electronics? 'It turns out, most people simply stash them away in drawers, hand them off to dealers, or worse, toss them out with their household trash,' Mohamed recalled in a recent interview with Bernama. This realisation led him to dig deeper into Malaysia's e-waste challenges. He discovered that many Malaysians, whether knowingly or not, contributed to the growing problem by hoarding obsolete electronics, unaware of the environmental risks posed by improper disposal. What became clear to him was that the problem was not a lack of infrastructure, but a lack of accessibility and public awareness. This gap inspired Mohamed to set up Electronic Recycling Through Heroes (ERTH) in 2019 – a social enterprise designed to make recycling electronics easier, more rewarding, and more widely understood. ERTH's innovative approach quickly gained traction. By mobilising a network of freelancers, known as 'Heroes', to collect e-waste directly from households and businesses, ERTH made recycling hassle-free. In 2023, ERTH's mission received a significant boost when it secured investment through the Gobi Dana Impak Ventures (GDIV) Fund, managed by Gobi Partners and supported by Khazanah Nasional Berhad under its Dana Impak initiative. This initiative, part of Khazanah's Future Malaysia Programme, is designed to nurture startups tackling national challenges in sustainability, digital innovation, and social mobility. From tech wreck to green vanguard ERTH's journey did not start with a large grant or cutting-edge technology; it began with a simple, unexpected encounter. When Mohamed arrived in Malaysia, he met S H Lim, a local phone dealer who had stockpiled more than 4,000 broken mobile phones, mostly old Nokia models and others. Lim, unwilling to send the devices to landfills and distrustful of existing recycling options, had kept them for years, waiting for a better solution. 'We didn't receive any grant from Khazanah initially. Their investment came later, as equity, because our company strongly aligned with Khazanah's national strategic pillars,' Mohamed recalled. At the time, Mohamed had taken over a struggling tech services company called Blue Bee Technologies Sdn Bhd, originally founded by Malaysians in 2016. 'I came to Malaysia in 2018 on a tourist visa, because I wasn't a director yet. 'After purchasing all the shares and registering as a director, I left the country in December 2018 and returned in January 2019 with a proper director's work visa.' The company, saddled with debts and operating in the mass transit technology sector, needed rescuing. Mohamed was invited to settle its debts and assume control, but instead of continuing in tech services, he saw a bigger opportunity. After the takeover, he made a bold decision – to pivot the company's focus entirely to the recycling industry. In 2019, Mohamed officially launched the ERTH brand. While the brand was new, the legal entity behind it, Blue Bee Technologies, had been in existence since 2016, only now carrying a fresh mission: tackling Malaysia's growing e-waste crisis, one discarded device at a time. 'It was never just about making money. 'It was about proving to the nation that the system could work – for the environment, for people like Lim, and for building a greener economy,' explained Mohamed. From that simple encounter, ERTH evolved into a full-fledged reverse logistics platform built on a deceptively simple idea: schedule a pickup, and someone will collect your e-waste from your home or office, free of charge. Hundreds of active and cheerful 'e-waste heroes' now form the backbone of the service. They offer instant DuitNow payments for working items, while non-working electronics – with a minimum of three items – are picked up for recycling. For businesses, ERTH offers an expanded range of services, including bulk collection, asset disposal, branded collection boxes, and certified data destruction, starting from as low as RM25. Today, major brands like Maxis, DHL, Panasonic, Hong Leong Bank, and even the Selangor state government, are among ERTH's growing list of clients. 'What sets us apart is convenience, transparency, and instant reward. 'People want to do the right thing; they just don't want it to be a hassle,' said Mohamed. Circular economy in full force ERTH's mission goes far beyond just collecting discarded electronics. At its Cyberjaya headquarters, the company refurbishes usable items — kettles, irons, laptops, and more — and sells them affordably, particularly to international students and young entrepreneurs. Many of these customers later return to recycle the same items, completing a real-world circular economy loop. This cycle of reuse and recycling not only helps protect the environment but also supports the community. Mohamed is especially committed to ensuring ERTH's services reach those who need them most – people on tight budgets, start-ups, and low-income groups who benefit from affordable, refurbished gadgets. During the Covid-19 pandemic, ERTH's ingenuity shone through when it repurposed outdated disinfection fogging machines into automatic air fresheners. The circular economy's concept of reusing and recycling not only helps protect the environment but also supports the community. – Bernama photo 'We just couldn't bear to throw them away,' Mohamed said, reflecting the company's relentless drive to find creative, sustainable solutions. Since its inception, ERTH has scaled 65 times and recycled over 2.5 million kilogrammes of e-waste, preventing both toxic chemicals and valuable metals from ending up in landfills. Its services have expanded across the Klang Valley, Penang and Johor Bahru. Thanks to a partnership with Pos Malaysia, every post office in the country now serves as an official e-waste drop-off point. ERTH's affiliate programme, which empowers individuals to collect e-waste and earn commissions, now boasts more than 200 active recyclers. Some work part-time; others have turned it into a full-time livelihood. 'We're not just building a recycling network – we're building livelihoods,' Mohamed said. Today, ERTH stands as one of Malaysia's fastest-growing green enterprises – living proof that one moment of clarity, backed by action and support, can rewire an entire system for the better. Today, ERTH stands as one of Malaysia's fastest-growing green enterprises. – Bernama photo Changing mindset before habits Despite Malaysia's recycling infrastructure, awareness remains a significant challenge. Many Malaysians still do not realise that improperly discarded e-waste can leach toxic substances like lead, cadmium, and mercury into the soil and water. Informal recycling, often involving unsafe stripping and open burning, remains widespread. 'People often think: 'What if I sell my old phone to a dealer? That's the right thing to do'. 'But what usually happens is that the device gets stripped for metals, and the rest is dumped illegally,' Mohamed explained. Many Malaysians still do not realise that improperly discarded e-waste can leach toxic substances like mercury into the soil and water. To tackle this issue, ERTH invests over RM1 million annually into public education efforts, including online ads, school programmes, and community outreach campaigns. Mohamed believes that these costs could be significantly reduced if recycling awareness were embedded in school curricula and reinforced through government policies. 'There's no lack of capacity. What's missing is a simple behaviour change,' he said. Mohamed's efforts have drawn increased attention to the dangers of e-waste and the importance of proper disposal. His ongoing campaigns aim to reshape public perceptions and inspire a more responsible approach to e-waste management. In line with its data-driven approach to sustainable e-waste management, ERTH has integrated artificial intelligence (AI) across various aspects of its operations. Mohamed explained that AI algorithms are used to analyse historical data and device-specific attributes, enabling automated decisions on whether a device should be reused, repaired, or sent for material recovery. 'We use AI to determine which devices or components should be reused, repaired, or recycled. We leverage data gathered over the years to support this decision-making process,' he noted. Additionally, AI tools are employed in ERTH's digital marketing efforts to optimise keyword performance and enhance product metadata, improving visibility and engagement – all while aligning with the company's broader environmental mission. From corporate goals to collective impact Mohamed also highlighted how ERTH's value proposition extends well into the corporate sector. Many companies are actively seeking cost-effective, sustainable solutions to meet their environmental, social, governance (ESG) targets, and ERTH is helping them achieve that. One client, for instance, saved over RM200,000 by switching from conventional IT disposal services to ERTH's eco-friendly solutions. Equally crucial is data security. ERTH provides clients with certificates of disposal and, when needed, certificates of data destruction for hard drives, ensuring full regulatory compliance. This focus on security has made ERTH a trusted partner for companies handling sensitive information. However, Mohamed emphasised that the impact did not stop there. Corporations also collaborate with ERTH on corporate social responsibility (CSR) initiatives, encouraging staff to bring e-waste from home or sponsoring school-based sustainability programmes. These efforts not only support recycling, but also help instil environmental values in the next generation. For him, corporate engagement is key to shifting Malaysia's e-waste culture. 'If companies lead the way, it sends a message to employees and communities about the importance of sustainability,'' he said. As landfill space diminishes and the climate crisis grows, ERTH's mission is to make recycling more accessible, rewarding, and inclusive than ever before. With every device collected, ERTH proves that when conscience and convenience come together, sustainable change is not only possible — it is already happening. 'Doing the right thing should be easy,' Mohamed remarked. 'We believe that if people are given the right tools and incentives, they will act responsibly.' He ended the casual, but insightful conversation, with the writer that evening, leaving a sense of hope for the future. — Bernama e-waste environment recycle reuse
Barnama
29-04-2025
- Barnama
Rewiring Malaysia's E-waste: The Erth Revolution
I n 2018, one brief moment would change the course of Mohamed El-Fatatry's life — and potentially the future of Malaysia's e-waste crisis. As he sat watching a National Geographic feature on the illegal influx of plastic waste into Malaysia, a powerful message flashed across the screen. 'Stop sending your waste to us.' The voice was firm, the frustration unmistakable. It was Malaysia's former woman minister speaking not just to the world, but to anyone willing to listen. Most viewers would forget the clip moments later. But for Mohamed, 40, a Finnish entrepreneur with Arab roots and a heart wired for purpose, those words struck like a bolt of lightning. It was not just a statement; it was a summons. Determined to learn more, he uncovered a troubling paradox. Despite Malaysia having over 50 licensed e-waste recovery facilities and robust infrastructure, the country's recycling rate remained stubbornly low — hovering around just 30 to 35 per cent. The issue wasn't one of capacity, but of utilisation. 'I kept wondering, where do people dispose of their old electronics? It turns out, most people simply stash them away in drawers, hand them off to dealers, or worse, toss them out with their household trash,' Mohamed recalled in a recent interview with Bernama. This realisation led him to dig deeper into Malaysia's e-waste challenges. He discovered that many Malaysians — whether knowingly or not — contributed to the growing problem by hoarding obsolete electronics, unaware of the environmental risks posed by improper disposal. What became clear to him was that the problem wasn't a lack of infrastructure, but a lack of accessibility and public awareness. This gap inspired Mohamed to set up Electronic Recycling Through Heroes (ERTH) in 2019 — a social enterprise designed to make recycling electronics easier, more rewarding, and more widely understood. ERTH's innovative approach quickly gained traction. By mobilising a network of freelancers, known as 'Heroes,' to collect e-waste directly from households and businesses, ERTH made recycling hassle-free. In 2023, ERTH's mission received a significant boost when it secured investment through the Gobi Dana Impak Ventures (GDIV) Fund, managed by Gobi Partners and supported by Khazanah Nasional Berhad under its Dana Impak initiative. This initiative, part of Khazanah's Future Malaysia Programme, is designed to nurture startups tackling national challenges in sustainability, digital innovation, and social mobility. FROM TECH WRECK TO GREEN VANGUARD ERTH's journey didn't start with a large grant or cutting-edge technology; it began with a simple, unexpected encounter. When Mohamed arrived in Malaysia, he met S H Lim, a local phone dealer who had stockpiled more than 4,000 broken mobile phones — mostly old Nokia models and others. Lim, unwilling to send the devices to landfills and distrustful of existing recycling options, had kept them for years, waiting for a better solution. Today, ERTH stands as one of Malaysia's fastest-growing green enterprises. 'We didn't receive any grant from Khazanah initially. Their investment came later, as equity, because our company strongly aligned with Khazanah's national strategic pillars,' Mohamed recalled. At the time, Mohamed had taken over a struggling tech services company called Blue Bee Technologies Sdn Bhd, originally founded by Malaysians in 2016. 'I came to Malaysia in 2018 on a tourist visa, because I wasn't a director yet. After purchasing all the shares and registering as a director, I left the country in December 2018 and returned in January 2019 with a proper director's work visa,' he shared. The company, saddled with debts and operating in the mass transit technology sector, needed rescuing. Mohamed was invited to settle its debts and assume control — but instead of continuing in tech services, he saw a bigger opportunity. After the takeover, he made a bold decision: to pivot the company's focus entirely to the recycling industry. In 2019, Mohamed officially launched the ERTH brand. While the brand was new, the legal entity behind it — Blue Bee Technologies — had been in existence since 2016, only now carrying a fresh mission: tackling Malaysia's growing e-waste crisis, one discarded device at a time. 'It was never just about making money. It was about proving to the nation that the system could work — for the environment, for people like Lim, and for building a greener economy,' Mohamed explained. From that simple encounter, ERTH evolved into a full-fledged reverse logistics platform built on a deceptively simple idea: schedule a pickup, and someone will collect your e-waste from your home or office, free of charge. Hundreds of active and cheerful 'e-waste heroes' now form the backbone of the service. They offer instant DuitNow payments for working items, while non-working electronics — with a minimum of three items — are picked up for recycling. For businesses, ERTH offers an expanded range of services, including bulk collection, asset disposal, branded collection boxes, and certified data destruction, starting from as low as RM25. Today, major brands like Maxis, DHL, Panasonic, Hong Leong Bank, and even the Selangor state government are among ERTH's growing list of clients. 'What sets us apart is convenience, transparency, and instant reward. People want to do the right thing — they just don't want it to be a hassle,' Mohamed said. CIRCULAR ECONOMY IN FULL FORCE ERTH's mission goes far beyond just collecting discarded electronics. At its Cyberjaya headquarters, the company refurbishes usable items — kettles, irons, laptops, and more — and sells them affordably, particularly to international students and young entrepreneurs. Many of these customers later return to recycle the same items, completing a real-world circular economy loop. This cycle of reuse and recycling not only helps protect the environment but also supports the community. Mohamed is especially committed to ensuring ERTH's services reach those who need them most — people on tight budgets, startups, and low-income groups who benefit from affordable, refurbished gadgets. Many Malaysians still don't realise that improperly discarded e-waste can leach toxic substances like mercury into the soil and water. During the COVID-19 pandemic, ERTH's ingenuity shone through when it repurposed outdated disinfection fogging machines into automatic air fresheners. 'We just couldn't bear to throw them away,' Mohamed said, reflecting the company's relentless drive to find creative, sustainable solutions. Since its inception, ERTH has scaled 65 times and recycled over 2.5 million kilogrammes of e-waste, preventing both toxic chemicals and valuable metals from ending up in landfills. Its services have expanded across the Klang Valley, Penang, and Johor Bahru. Thanks to a partnership with Pos Malaysia, every post office in the country now serves as an official e-waste drop-off point. ERTH's affiliate programme, which empowers individuals to collect e-waste and earn commissions, now boasts more than 200 active recyclers. Some work part-time; others have turned it into a full-time livelihood. 'We're not just building a recycling network — we're building livelihoods,' Mohamed said. Today, ERTH stands as one of Malaysia's fastest-growing green enterprises — living proof that one moment of clarity, backed by action and support, can rewire an entire system for the better. CHANGING MINDSET BEFORE HABITS Despite Malaysia's recycling infrastructure, awareness remains a significant challenge. Many Malaysians still don't realise that improperly discarded e-waste can leach toxic substances like lead, cadmium, and mercury into the soil and water. Informal recycling — often involving unsafe stripping and open burning — remains widespread. 'People often think, 'What if I sell my old phone to a dealer? That's the right thing to do.' But what usually happens is that the device gets stripped for metals, and the rest is dumped illegally,' Mohamed explained. To tackle this issue, ERTH invests over RM1 million annually into public education efforts, including online ads, school programmes, and community outreach campaigns. Mohamed believes that these costs could be significantly reduced if recycling awareness were embedded in school curricula and reinforced through government policies. 'There's no lack of capacity. What's missing is a simple behaviour change,' he said. Mohamed's efforts have drawn increased attention to the dangers of e-waste and the importance of proper disposal. His ongoing campaigns aim to reshape public perceptions and inspire a more responsible approach to e-waste management. The circular economy's concept of reusing and recycling not only helps protect the environment but also supports the community. In line with its data-driven approach to sustainable e-waste management, ERTH has integrated artificial intelligence (AI) across various aspects of its operations. Mohamed explained that AI algorithms are used to analyse historical data and device-specific attributes, enabling automated decisions on whether a device should be reused, repaired, or sent for material recovery. 'We use AI to determine which devices or components should be reused, repaired, or recycled. We leverage data gathered over the years to support this decision-making process,' he noted. Additionally, AI tools are employed in ERTH's digital marketing efforts to optimise keyword performance and enhance product metadata, improving visibility and engagement — all while aligning with the company's broader environmental mission. FROM CORPORATE GOALS TO COLLECTIVE IMPACT Mohamed also highlighted how ERTH's value proposition extends well into the corporate sector. Many companies are actively seeking cost-effective, sustainable solutions to meet their Environmental, Social, Governance (ESG) targets — and ERTH is helping them achieve that. One client, for instance, saved over RM200,000 by switching from conventional IT disposal services to ERTH's eco-friendly solutions. Equally crucial is data security. ERTH provides clients with Certificates of Disposal and, when needed, Certificates of Data Destruction for hard drives, ensuring full regulatory compliance. This focus on security has made ERTH a trusted partner for companies handling sensitive information. But Mohamed emphasised that the impact doesn't stop there. Corporations also collaborate with ERTH on Corporate Social Responsibility (CSR) initiatives, encouraging staff to bring e-waste from home or sponsoring school-based sustainability programmes. These efforts not only support recycling but also help instil environmental values in the next generation. For him, corporate engagement is key to shifting Malaysia's e-waste culture. 'If companies lead the way, it sends a message to employees and communities about the importance of sustainability,'' he said. As landfill space diminishes and the climate crisis grows, ERTH's mission is to make recycling more accessible, rewarding, and inclusive than ever before. With every device collected, ERTH proves that when conscience and convenience come together, sustainable change is not only possible — it's already happening. 'Doing the right thing should be easy,' Mohamed remarked. 'We believe that if people are given the right tools and incentives, they will act responsibly.' He ended the casual but insightful conversation with the writer that evening, leaving a sense of hope for the future.
New Straits Times
29-04-2025
- New Straits Times
Rewiring Malaysia's e-waste: The Erth revolution
CYBERJAYA: In 2018, one brief moment would change the course of Mohamed El-Fatatry's life, and potentially the future of Malaysia's e-waste crisis. As he sat watching a National Geographic feature on the illegal influx of plastic waste into Malaysia, a powerful message flashed across the screen. "Stop sending your waste to us." The voice was firm, the frustration unmistakable. It was Malaysia's former woman minister speaking not just to the world, but to anyone willing to listen. Most viewers would forget the clip moments later. But for Mohamed, 40, a Finnish entrepreneur with Arab roots and a heart wired for purpose, those words struck like a bolt of lightning. It was not just a statement; it was a summons. Determined to learn more, he uncovered a troubling paradox. Despite Malaysia having over 50 licensed e-waste recovery facilities and robust infrastructure, the country's recycling rate remained stubbornly low, hovering around just 30 to 35 per cent. The issue wasn't one of capacity, but of utilisation. "I kept wondering, where do people dispose of their old electronics? It turns out, most people simply stash them away in drawers, hand them off to dealers, or worse, toss them out with their household trash," Mohamed recalled in a recent interview with Bernama. This realisation led him to dig deeper into Malaysia's e-waste challenges. He discovered that many Malaysians, whether knowingly or not, contributed to the growing problem by hoarding obsolete electronics, unaware of the environmental risks posed by improper disposal. What became clear to him was that the problem wasn't a lack of infrastructure, but a lack of accessibility and public awareness. This gap inspired Mohamed to set up Electronic Recycling Through Heroes (ERTH) in 2019, a social enterprise designed to make recycling electronics easier, more rewarding, and more widely understood. ERTH's innovative approach quickly gained traction. By mobilising a network of freelancers, known as 'Heroes,' to collect e-waste directly from households and businesses, ERTH made recycling hassle-free. In 2023, ERTH's mission received a significant boost when it secured investment through the Gobi Dana Impak Ventures (GDIV) Fund, managed by Gobi Partners and supported by Khazanah Nasional Bhd under its Dana Impak initiative. This initiative, part of Khazanah's Future Malaysia Programme, is designed to nurture startups tackling national challenges in sustainability, digital innovation, and social mobility. FROM TECH WRECK TO GREEN VANGUARD ERTH's journey didn't start with a large grant or cutting-edge technology; it began with a simple, unexpected encounter. When Mohamed arrived in Malaysia, he met S. H. Lim, a local phone dealer who had stockpiled more than 4,000 broken mobile phones, mostly old Nokia models and others. Lim, unwilling to send the devices to landfills and distrustful of existing recycling options, had kept them for years, waiting for a better solution. "We didn't receive any grant from Khazanah initially. Their investment came later, as equity, because our company strongly aligned with Khazanah's national strategic pillars," Mohamed recalled. At the time, Mohamed had taken over a struggling tech services company called Blue Bee Technologies Sdn Bhd, originally founded by Malaysians in 2016. "I came to Malaysia in 2018 on a tourist visa, because I wasn't a director yet. After purchasing all the shares and registering as a director, I left the country in December 2018 and returned in January 2019 with a proper director's work visa," he shared. The company, saddled with debts and operating in the mass transit technology sector, needed rescuing. Mohamed was invited to settle its debts and assume control, but instead of continuing in tech services, he saw a bigger opportunity. After the takeover, he made a bold decision: to pivot the company's focus entirely to the recycling industry. In 2019, Mohamed officially launched the ERTH brand. While the brand was new, the legal entity behind it — Blue Bee Technologies — had been in existence since 2016, only now carrying a fresh mission: tackling Malaysia's growing e-waste crisis, one discarded device at a time. "It was never just about making money. It was about proving to the nation that the system could work for the environment, for people like Lim, and for building a greener economy," Mohamed said. From that simple encounter, ERTH evolved into a full-fledged reverse logistics platform built on a deceptively simple idea: schedule a pickup, and someone will collect your e-waste from your home or office, free of charge. Hundreds of active and cheerful 'e-waste heroes' now form the backbone of the service. They offer instant DuitNow payments for working items, while non-working electronics, with a minimum of three items, are picked up for recycling. For businesses, ERTH offers an expanded range of services, including bulk collection, asset disposal, branded collection boxes, and certified data destruction, starting from as low as RM25. Today, major brands like Maxis, DHL, Panasonic, Hong Leong Bank, and even the Selangor state government are among ERTH's growing list of clients. "What sets us apart is convenience, transparency, and instant reward. People want to do the right thing — they just don't want it to be a hassle," Mohamed said. CIRCULAR ECONOMY IN FULL FORCE ERTH's mission goes far beyond just collecting discarded electronics. At its Cyberjaya headquarters, the company refurbishes usable items such as kettles, irons, laptops, and sells them affordably, particularly to international students and young entrepreneurs. Many of these customers later return to recycle the same items, completing a real-world circular economy loop. This cycle of reuse and recycling not only helps protect the environment but also supports the community. Mohamed is especially committed to ensuring ERTH's services reach those who need them most — people on tight budgets, startups, and low-income groups who benefit from affordable, refurbished gadgets. During the Covid-19 pandemic, ERTH's ingenuity shone through when it repurposed outdated disinfection fogging machines into automatic air fresheners. "We just couldn't bear to throw them away," Mohamed said, reflecting the company's relentless drive to find creative, sustainable solutions. Since its inception, ERTH has scaled 65 times and recycled over 2.5 million kilogrammes of e-waste, preventing both toxic chemicals and valuable metals from ending up in landfills. Its services have expanded across the Klang Valley, Penang, and Johor Baru. Thanks to a partnership with Pos Malaysia, every post office in the country now serves as an official e-waste drop-off point. ERTH's affiliate programme, which empowers individuals to collect e-waste and earn commissions, now boasts more than 200 active recyclers. Some work part-time; others have turned it into a full-time livelihood. "We're not just building a recycling network — we're building livelihoods," Mohamed said. Today, ERTH stands as one of Malaysia's fastest-growing green enterprises — living proof that one moment of clarity, backed by action and support, can rewire an entire system for the better. CHANGING MINDSET BEFORE HABITS Despite Malaysia's recycling infrastructure, awareness remains a significant challenge. Many Malaysians still don't realise that improperly discarded e-waste can leach toxic substances like lead, cadmium, and mercury into the soil and water. Informal recycling, often involving unsafe stripping and open burning, remains widespread. "People often think, 'What if I sell my old phone to a dealer? That's the right thing to do.' But what usually happens is that the device gets stripped for metals, and the rest is dumped illegally," Mohamed explained. To tackle this issue, ERTH invests over RM1 million annually into public education efforts, including online ads, school programmes, and community outreach campaigns. Mohamed believes that these costs could be significantly reduced if recycling awareness were embedded in school curricula and reinforced through government policies. "There's no lack of capacity. What's missing is a simple behaviour change," he said. Mohamed's efforts have drawn increased attention to the dangers of e-waste and the importance of proper disposal. His ongoing campaigns aim to reshape public perceptions and inspire a more responsible approach to e-waste management. In line with its data-driven approach to sustainable e-waste management, ERTH has integrated artificial intelligence (AI) across various aspects of its operations. Mohamed said that AI algorithms are used to analyse historical data and device-specific attributes, enabling automated decisions on whether a device should be reused, repaired, or sent for material recovery. "We use AI to determine which devices or components should be reused, repaired, or recycled. We leverage data gathered over the years to support this decision-making process," he said. Additionally, AI tools are employed in ERTH's digital marketing efforts to optimise keyword performance and enhance product metadata, improving visibility and engagement, all while aligning with the company's broader environmental mission. FROM CORPORATE GOALS TO COLLECTIVE IMPACT Mohamed also highlighted how ERTH's value proposition extends well into the corporate sector. Many companies are actively seeking cost-effective, sustainable solutions to meet their Environmental, Social, Governance (ESG) targets — and ERTH is helping them achieve that. One client, for instance, saved over RM200,000 by switching from conventional IT disposal services to ERTH's eco-friendly solutions. Equally crucial is data security. ERTH provides clients with Certificates of Disposal and, when needed, Certificates of Data Destruction for hard drives, ensuring full regulatory compliance. This focus on security has made ERTH a trusted partner for companies handling sensitive information. But Mohamed emphasised that the impact doesn't stop there. Corporations also collaborate with ERTH on Corporate Social Responsibility (CSR) initiatives, encouraging staff to bring e-waste from home or sponsoring school-based sustainability programmes. These efforts not only support recycling but also help instil environmental values in the next generation. "For him, corporate engagement is key to shifting Malaysia's e-waste culture. 'If companies lead the way, it sends a message to employees and communities about the importance of sustainability,'" he said. As landfill space diminishes and the climate crisis grows, ERTH's mission is to make recycling more accessible, rewarding, and inclusive than ever before. With every device collected, ERTH proves that when conscience and convenience come together, sustainable change is not only possible — it's already happening. "Doing the right thing should be easy," Mohamed remarked.
