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Trash to Treasure: Empowering Informal Waste Workers for a Sustainable Future

This paper summarises key findings by Social & Economic Research Initiative

22nd February 2025

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Imagine a sprawling landfill on the outskirts of a city. A woman named Siti, rummages through mountains of waste, stretching as far as the eyes can see. With her makeshift tools and clothes that reeks of the indelible scent of decomposing matters, she moves amid the unforgiving blistering tropical heat. Despite the assault on the senses, her arms are like mechanical tools that tirelessly sift through heaps of refuse to extract recyclable plastic bottles and metal scraps. 

 

With minimum governmental support, unbeknownst to the society that scoffs at her sight, her work keeps environmental pollutants at bay. Yet, the woman does not earn enough to feed her family, nor is she given access to healthcare, social security, and basic recognition as the backbone of the recycling supply chain. Siti’s story is not unique–it is the reality for millions of informal waste workers across Southeast Asia; the unsung heroes with worn-out gloves, propelling the regional aspiration of a circular economy. Their relentless labour is indispensable in combating the region’s escalating plastic pollution crisis, yet their contributions remain unrecognised and undervalued.

Navigating the Regional Plastic Crisis

Malaysia, along with other ASEAN countries, are still grappling with the plastic pollution crisis. Over 900,000 tonnes of plastic are produced annually in Malaysia alone, with 55% of that amount ending up in landfills or as pollutants in rivers and coastlines(1). Regionally, six out of ten ASEAN countries generate about 31 million tonnes of plastic waste annually, accounting for more than half of the world’s ocean plastic pollution. To double the burden(2), Malaysia’s recycling rate is currently 35%, falling short of the 40% target set for 2025 and lagging behind countries like Taiwan, which achieved 61.4% in 2020(3). 

 

These concerning rates reflect the inadequate regional waste sorting infrastructure and weak policy enforcement, enabling mismanaged plastics to proliferate in both urban and rural areas alike, ultimately polluting the oceans(4). Furthermore, environmental and societal problems are exacerbated by the overwhelming influx of imported waste that far exceeds the regional ability to manage its domestic waste, reinforcing its narrative as a dumping ground for wealthier nations in a seemingly exploitative and environmentally ruinous dynamic. 

 

Following China’s 2018 ban on plastic waste imports, much of Europe’s trash was diverted to Southeast Asia, impacting countries like Malaysia, Vietnam, Thailand, and Indonesia. Malaysia, for example, saw a 35% year-on-year increase in plastic waste imports from the EU, exceeding 1.7 million tons(5). A large portion of this imported trash frequently ends up in landfills, particularly in receiving nations that lack the infrastructure necessary to facilitate recycling(6). 

 

Despite the import bans and strict regulations imposed by the ASEAN governments, waste trafficking remains a highly lucrative criminal activity that often goes unnoticed(7). These circumstances leave informal waste workers to bear the brunt of this crisis without adequate protection or recognition, despite their crucial role in preventing plastic pollution and, protecting ecosystems and human life. Integrating them into the formal waste management system could substantially improve recycling rates across the region. 

 

As Malaysia assumes its Chairmanship of ASEAN 2025, the bloc faces a defining moment in history where its stride and aspirations towards a circular economy are being tested. This opens up an unparalleled opportunity to address these social inequities through empathetic and sustainable practices. 

The Battle of the Unsung Heroes

By definition, a waste picker is a person who participates in the collection, separation, sorting, transport, and sale of reusable and recyclable materials in an informal or semi-formal capacity individually or collectively in an economic setting. In Malaysia, informal waste pickers are referred to as “scavengers” or “rag-pickers”. Their works mainly consist of separating recyclable waste from non-recyclable ones, such as plastic, glass, and metals, and further contributing to a more circular economy(8). 

 

Nicknamed by the UNDP as the unsung heroes, they can be spotted on the edge of cities around the globe, operating under hazardous, risky, and deplorable working conditions. Estimates suggest that globally, there are up to 20 million informal waste pickers worldwide, with a significant number based in Southeast Asia(9). However, the exact number of individuals involved in the informal waste sector in Malaysia remains undocumented. They are integral to global recycling efforts, accounting for more than 59% of all the plastic material collected for recycling(10). Informal waste pickers provide a steady supply of secondary raw materials by sorting and selling recyclable materials (11). This provides a cost-effective method for manufacturers as it reduces reliance on imported raw materials. Furthermore, by reducing the volume of waste destined for landfills, their work diverts waste from improper disposal methods and reduces microplastic contamination that results in environmental degradation(12).

 

Despite their indispensable role in society, this socially marginalised group often find themselves trapped in the clutches of poverty, income volatility, health hazards, and societal stigma, making them among the most vulnerable stakeholders within plastic value chains(13). Although research on the health risks faced by informal waste workers in Southeast Asia and Malaysia is limited, numerous studies worldwide have examined communities in similar conditions. For instance, studies conducted on informal waste workers in Lucknow city, India, revealed frequent occurrences of respiratory, eye, and dermatological problems and injuries. Moreover, common health issues such as fever, cough, and diarrhoea are prevalent among this group(14). 

 

Lacking formal recognition as workers, they endure low and unstable incomes and inadequate access to essential welfare benefits(15). In addition to occupational hardships, these marginalised communities often face a lack of legal protection, leaving them disproportionately vulnerable to discrimination, violence, and even sexual harassment(16). While women make up the majority of the workforce, multiple studies have shown that they earn disproportionately less than their male counterparts. This imbalance ultimately places an intersectional burden on these women, as it is harder for them to access opportunities and consolidate influence (17). 

 

Furthermore, the nature of their work is associated with ‘dirtiness’’ subjecting them to stigmatisation(18). It is unfortunate that one of the most critical sectors driving the green transition relies on informal workers who are often sidelined in the realm of policymaking. Their livelihoods could substantially benefit the people and the planet if harnessed at a greater scale. 

Opportunities: Socioeconomic and Environmental Values of Formalisation

The formalisation of informal waste workers yields significant social and economic benefits, as it leads to recognition by the authorities; enabling waste pickers to influence policies and regulations that affect their work(19). This status acts as their social safety net against economic hardships, improves their social status and self-worth, reduces gender inequality, and grants them access to better working conditions and healthcare benefits (20). Aside from alleviating poverty, waste picking when formalised and organised, can stimulate local investments by low-income communities, generate employment, reduce municipal costs, enhance industrial competitiveness, and conserve resources(21). 

 

A World Bank study highlighted that diverting waste from landfills through recycling can save municipalities money on collection, transport, and disposal. This improved efficiency lowers operating costs and prolongs the use of existing landfills. Additionally, integrating informal waste workers into the formal sector can bolster both local and international industries, supplementing their roles in the recycling supply chain by assisting them in meeting recycling targets(22). On a much bigger scale, the broader economic gains for communities and municipalities would ultimately lead to the growth of the national GDP. 


Furthermore, the presence of this group can be felt deeply in countries where recycling awareness is low. For instance, a study on scavengers at Malaysian landfill sites, particularly in Bukit Gemuk in Tawau, Sabah, has demonstrated the economic and environmental advantages of their effective material recovery efforts despite the lack of formal waste segregation facilities(23). The improved access to resources and infrastructure from formalisation will, in turn, promote environmental stewardship by mitigating landfill-generated carbon emissions, augmenting material recyclability, and fostering a cleaner, healthier environment(24).

Turning the Tide - The Path Through Formalisation

With the growing endeavour among global corporations, governments, and industries to push towards a circular economy, there is a pivotal opportunity to foster inclusivity within the evolving green sectors. Formalising the waste management sector necessitates that decision-makers recognise the potential of waste pickers as valuable assets and that municipalities engage with them as potential partners. 

 

First, as Malaysia sets out to implement a mandatory Extended Producer Responsibility (EPR) scheme by 2026, plastic producers will be responsible for the post-consumer waste that is produced(25). Several ASEAN countries are also joining the movement to encourage accountability among manufacturing sectors in developing comprehensive waste reduction plans(26). These initiatives, encouraging corporate investment in enhanced recycling and packaging take-back programs, could potentially fund to support informal waste workers(27).

 

Secondly, to acknowledge waste workers at national, provincial and municipal legislation levels, it is crucial to implement a universal registration system to include them in the official labour database. This recognition grants them the legal rights related to their livelihoods and access to social protection measures, such as fair wages and labour protections. Moreover, to encourage registration, processes should be made readily available and accessible to waste pickers, especially in remote areas. 

 

Thereafter, organising the waste picking sector necessitates a strategic, and community-based approach. Offering financial literacy, recycling techniques, legal rights, and safety protocol training ensures a developed network with bargaining power and mutual support(28). In Bogotá, the capital city of Colombia, organised waste pickers have gained access to better working conditions and payment schemes for their services. Their success in empowering marginalised populations into a sustainable work environment was driven by a combination of grassroots advocacy movements, policy proposals, and partnerships with government officials, demonstrating what a successful transformation would necessitate(29).  

 

Lastly, the ongoing negotiation for a Global Plastic Treaty presents a pivotal opportunity in facilitating dialogues on empowering global informal waste workers and ensuring that they are a part of the transition towards a circular ecosystem. With Malaysia becoming an active participant in the Intergovernmental Negotiating Committee (INC), the country is expected to take steadfast actions in pushing for stringent plastic regulations. By taking global best practices and tailoring them according to the existing national and regional context, Malaysia can enhance its waste management strategies, promote social equity, and contribute to a sustainable circular economy. 

Conclusion

The reality of informal waste workers underscores the indispensable yet under-compensated role of the community in propelling the regional aspiration of a circular economy. Despite their contribution, the community often endure hazardous conditions, economic uncertainties, and social marginalisation. Inadequate waste sorting infrastructure and unprecedented waste imports have intensified the accumulation of waste in landfills, leaving the informal sector to shoulder the burden of the crisis. By recognising waste pickers as valuable contributors, and harnessing their livelihoods at a greater scale, countries like Malaysia can enhance environmental outcomes and promote social equity, driving a systemic change towards a more sustainable future. 

Reference List

 

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