JAG UPBEAT ABOUT E-WASTE DIVISION

Firm allocates RM3.6m to double treatment capacity, says executive director

JAG Bhd’s e-waste management division is expected to continue being the core revenue contributor to the company, riding on the robust electrical and electronics (E&E) sector growth.

“The Covid-19 pandemic has pushed businesses to digitalise their operations. This has increased the demand for E&E products, consequently generating more e-waste,” executive director Datuk Ng Meow

Giak told the New Straits

Times.

On what will drive the division’s growth, Ng said the core of the company’s business is supplier-centric and not customer-centric.

“Our contracts are predominantly from the semiconductor industry.

“Any strengthening of the US dollar and uptrend in the prices of precious metals will drive growth for our e-waste management division.”

According to the United Nations Global E-waste Monitor 2020, a record 53.6 million tonnes of e-waste were generated worldwide last year, up 21 per cent in just five years.

Of this, only 17.4 per cent was collected and recycled.

This means that gold, silver, copper, platinum and other high-value, recoverable materials conservatively valued at US$57 billion — a sum greater than the gross domestic product of most countries — were mostly dumped or burned.

The report noted that Asia generated the greatest volume of e-waste last year, at some 24.9 million tonnes, followed by the Americas (13.1 million tonnes) and Europe (12 million tonnes).

Africa and Oceania generated 2.9 million tonnes and 700,000 tonnes, respectively.

Based on a report on the inventory of ewaste in Malaysia funded by Japan’s Environment Ministry, it is projected that ewaste will increase by an average of 14 per cent annually in Malaysia, and by this year, 21.38 million tonnes of e-waste will be generated.

Ng said Malaysia is not allowed to import e-waste under the Basel Convention.

“To this end, we have allocated RM3.6 million for capital expenditure, which is expected to double our treatment capacity.

“We have also upgraded our downstream equipment to increase production and improve the recovery process.”

On the outlook, Ng said the fluctuations of the exchange rate and the trend of commodity prices are factors that will affect the company’s earnings.

“Although this year will be challenging, we believe we will be able to turn in a positive year, as our contracts are very much intact.

“In addition, the group has a sufficient inventory level of RM46 million (up to March 31) which can be realised gradually to improve our cash position.”

Ng said the company is constantly on the lookout to collaborate with partners locally or abroad, with a view to increase the value of the group.

Although this year will be challenging, we believe we will be able to turn in a positive year...

DATUK NG MEOW GIAK

JAG Bhd executive director