I. STATE OF THE ENVIRONMENT IN MALAYSIA

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A. Malaysian resources and the environment

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2. Environmental problems related to industrialization

Industrialization as a means of both development and poverty alleviation can intensify the severity of environmental problems. Three factors influence the intensity of environmental pollution: the size of the population, the degree of affluence associated with increasing growth of economic activity, and the tendency of productive technology to pollute. Of those factors, the latter is the most to blame for the worsening industrial pollution in Malaysia. Population growth can also contribute to the deterioration of natural resources or biological life-support systems.

As the population increases, the manifestations of ecological stress and natural resources scarcity include: (a) deforestation, soil erosion, over-fishing and overcrowding; (b) economic stress through lower output, inflation and unemployment; and (c) social stress such as hunger, a demoralized population, forced migration, higher infant mortality and reduced life expectancy. Combined, those symptoms may ultimately cause political stress. The impact of population growth on food supplies is direct and crucial. As population begins to outpace the production of the basic commodities, food becomes scarce and prices begin to rise. Marginal lands will be brought into production and, consequently, yields per hectare will fall.

The population of Malaysia has grown steadily at an average annual rate of more than 2 per cent since the 1960s. The population is projected to increase to 26.8 million by the year 2025 compared with 17.8 million in 1990.

Malaysia's gross domestic product (GDP) grew from M$ 12 billion in 1970 to about M$ 26 billion in 1980. It increased further to M$ 79 billion in 1990 and M$ 120 billion in 1995. Those figures represent an annual average GDP growth rate of 8 per cent in the 1970s, 6.8 per cent during the second half of the 1980s and 8.7 per cent in the first half of the 1990s.

The economy has undergone major structural changes during the past two decades as a result of strong growth in the secondary and tertiary sectors. The manufacturing sector expanded from 14 per cent of GDP in 1970 to 21, 27 and 33 per cent in 1980, 1990 and 1995, respectively, while the share of agriculture in GDP declined from 30 per cent in 1970 to 22, 18.7 and 14 per cent in 1980, 1990 and 1995, respectively. The services sector grew from 42 per cent in 1970 to 45, 49 and 53 per cent in 1980, 1990 and 1995, respectively, reflecting the expanding role of the government and the general improvement in the provision of services.

The composition of all sectors has also changed during the past two decades. In the agricultural sector, the share of rubber in terms of value declined from about 50 per cent in 1970 to about 30, 20 and then back up to 24.6 per cent in 1980, 1990 and 1995, respectively, while palm oil output increased from 10 per cent in 1970 to about 17, 29.8 and 63 per cent in 1980, 1990 and 1995, respectively. In the mining sector, crude petroleum became a major contributor to growth while tin output declined. The manufacturing sector shifted from agro-based industries to the manufacture of electrical and electronic machinery and appliances, petroleum products, and processed palm oil products.

The export sector was a significant contributor to growth; its share of gross national product (GNP) averaged about 50 per cent in 1970, increasing to 79.9 and 99.5 per cent in 1990 and 1995, respectively. The composition of exports also changed significantly. Rubber and tin, which accounted for 33 and 20 per cent respectively of total exports in 1970, declined to 19 and 10 per cent respectively in 1980, 3.8 and 1 per cent in 1990, and 2.2 and 0.3 per cent in 1995, respectively. Palm oil, which contributed 5 per cent in 1970, became an important export commodity, contributing 10 per cent of total exports in 1980; however, it declined to 5.6 per cent in 1990 and 1995. Crude petroleum accounted for 4 per cent in 1970, then rose to become the leading export commodity by contributing 20 per cent of total exports in 1980; however, it declined to about 13 per cent in 1990 and 3.6 per cent in 1995. Manufactured goods increased in importance, accounting for 58.8 and 79.6 per cent in 1990 and 1995, respectively, compared with 12 and 21 per cent of total exports in 1970 and 1980 of total exports.

The overall employment situation has been relatively stable, with a marginal decline in the rate of unemployment from 3.8 per cent in 1970 to 3.6, 5.1 and 2.8 per cent in 1980, 1990 and 1995, respectively. In 1970, employment in the primary sector (agriculture and mining) accounted for 56 per cent of total employment. In 1980 and 1990, it had declined to 44 and 28.3 per cent, respectively. In 1995, employment in the primary sector declined further to 18.5 per cent. On the other hand, the secondary (manufacturing and construction) sector absorbed about 34.2 per cent of the workforce in 1995, compared with 26.2, 19 and 12 per cent in 1990, 1980 and 1970, respectively. The tertiary (services) sector absorbed 47.2 per cent in 1995 and in 1990, compared with 32 and 37 per cent in 1970 and 1980, respectively.

The strong growth of the Malaysian economy was accompanied by improvements in the quality of life. Income per capita increased from about M$ 895 in 1970 to about M$ 3,014 M$ 6,099 and M$ 9,786 in 1980, 1990 and 1995, respectively. Poverty, although showing a decline, still exists both in the rural and urban areas. In 1970, the incidence of poverty in peninsular Malaysia was 49.3 per cent, falling to 29.2, 16.5 and 8.9 per cent in 1980, 1990 and 1995, respectively. The incidence of poverty in rural areas also declined from 58.7 per cent in 1970 to 37.7, 21.1 and 15.3 per cent in 1980, 1990 and 1995, respectively.

In the past two decades, technology and production techniques have become more and more energy and capital intensive. In rice production, for example, large amounts of fertilizers and insecticides are now required, and machines are doing the ploughing and harvesting work, replacing human labour. With increasing prices of oil products, the costs of rice production have risen sharply and are likely to continue. The problem is exacerbated by continuing pressure from other sectors on resources, agricultural land and clean water.

Water, air and land pollution continue to be serious environmental problems in Malaysia. As a result of sea and river pollution by industrial effluents, oil spills and discharges of raw sewage, the health of the people living along the coast and rivers is under threat. In cities, pollution of air by vehicles and industries is also proving injurious to health. Land is the most valuable and limited resource. With the growing population, the need for increased production from the land becomes important, but this can result in accelerated soil erosion and degradation. The effects of erosion are not limited only to a loss of land productivity but also a reduction in the flow capacity of rivers and streams, increased flood potential, and silting of reservoirs and dams.

Water pollution poses a serious threat in certain areas of Malaysia. The Department of Environment reported that in 1995, 41.7 per cent (48 of 115 rivers monitored) of the main rivers in Malaysia were classified as "clean", using the general water quality index. In 1991, 42.5 per cent (37 of 87) were reported to be clean. In 1995, 46 per cent (53 of 115) of the rivers were slightly polluted compared to 50.5 per cent in 1991. The percentage of very polluted rivers increased from 6.9 per cent in 1991 to 12.2 per cent in 1995. In 1987, there were 43 clean rivers, 45 slightly polluted rivers and only three very polluted rivers.

Studies have shown that the major sources of water pollution are agricultural activities and agro-based industries including the processing of palm oil, rubber, pineapple, tapioca, sugar, sago and, to some extent, paper and pulp manufacturing. Both the range and complexity of water pollution problems caused by the discharge of industrial effluents have increased, particularly in the industrial centres in Selangor, Johore, Penang and Perak. The major industries responsible for the increase are food and beverage processing plants, textile and leather tanneries, distilleries, chloro-alkali and sulphuric acid plants, and electronics hardware processing factories. Many of those industries discharge wastes containing different inorganic compounds, including heavy metals, into open water courses without prior treatment.

In addition to rivers, another water resource that is being increasingly polluted is the sea surrounding Malaysia. Oil pollution can be caused by oil prospecting operations, oil spills, oil tanker accidents, bilge pumping and de-ballasting of vessels. The Straits of Malacca has long been an important route for ships trading between the eastern and western hemispheres. With the passage of large cargo ships and oil supertankers, the Straits has become one of the most polluted routes in the world. Other problem areas in the coastal zones include silting and coastal erosion, discharge of industrial effluents, and human and animal wastes.

Air pollution is approaching critical levels in a number of urban areas of Malaysia such as Kuala Lumpur, Petaling Jaya, Johore Bahru and Prai. The problem is expected to grow, both in complexity and extent in the face of expanding manufacturing activities and increased reliance on individually-driven private vehicles for mobility.

The major air pollution sources in Malaysia are transportation, fuel combustion by stationary sources, industrial processes and solid wastes. In recent years, the number of vehicles on the roads has steadily increased. The exhaust fumes from that rapidly expanding fleet of vehicles is a principal cause of the worsening air quality. Another form of air pollution is the contamination of the atmosphere by particulate matter emitted from factories, quarry works and lorries carrying earth.

Exploitation of natural resources has also created environmental problems. The development of the timber industry has entailed extensive logging. Indiscriminate felling of trees has resulted in frequent flooding by surface water run-off. Erosion of bare land surfaces has also resulted in silting in the lower reaches of the rivers, thus further contributing to extensive flooding. Even in the cities, the problem of flooding has increased tremendously as a result of increased volumes of surface water run-off and inadequate drainage facilities. Again, irresponsible actions by housing developers have resulted in blockages of public drainage systems, contributing to further incidences of flooding.

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