A Comparative Policy Analysis of End-of-Life Vehicle (ELV) Management: Examining the Regulatory Drivers behind Divergent Performance between Malaysia and Japan

Nik Hairi Omar, Azmi Awang, Muhammad Nasroul Mohd Sukeri, Norhabib Mohd Kamin

Abstract


This study presents a comparative policy analysis of End-of-Life Vehicle (ELV) management frameworks in Malaysia and Japan, examining the interplay between legislation, economic instruments, and Authorized Automotive Treatment Facility (AATF) operations. Employing a qualitative comparative case study design, the research triangulates document analysis, immersive site visits, and semi-structured focus group discussions at benchmark facilities of Carmedic Sdn Bhd (Malaysia) and Kaiho Sangyo Co. Ltd (Japan). Thematic analysis of interview transcripts, observational data, and policy documents reveals five critical regulatory drivers underpinning divergent performance. Japan's 95% recycling success derives from institutional coherence: (1) binding Extended Producer Responsibility (EPR) with last-owner liability; (2) a secured pre-paid recycling fund (JARC) ensuring recycler viability; (3) synergistic economic disincentives (shaken, progressive taxation, and high operating costs) that engineer predictable ELV supply; (4) effective marginalization of informal operators through mandated deregistration; and (5) stable secondary material markets sustaining investment. In contrast, Malaysia's framework, while progressive on paper, lacks stringent enforcement, effective economic drivers, and a cohesive system for integrating informal actors. The paper concludes that Malaysia's path to ELV management success requires a holistic policy transplant that extends beyond EPR legislation to include powerful market-creating and market-correcting mechanisms, as exemplified by the Japanese model. 


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