EHS regulatory compliance in ASEAN countries has grown complex in 2024. Singapore, Malaysia, Vietnam, Indonesia, and the Philippines have introduced significant regulatory updates that affect various industries. These changes include environmental protection, energy efficiency, chemical management, and occupational safety standards. Businesses within these nations must stay informed about these changes to ensure compliance, mitigate risks, and maintain a competitive edge in the increasingly complex ASEAN market.
2024 EHS Regulatory Updates Across ASEAN
Indonesia
Implementation of Strategic Environmental Assessment Procedures
Indonesia's Minister of Environment and Forestry Regulation No. 13/2024, which took effect on September 6, 2024, introduces new procedures for conducting Strategic Environmental Assessments (SEA). The SEA is a systematic approach designed to ensure sustainable development by evaluating the potential environmental impacts of policies and plans. This regulation seeks to strengthen the country's environmental governance and align with Indonesia's international commitments. Standardising the SEA process across various sectors will significantly influence decision-making, particularly in urban planning and resource management.
Revised Regulation on Distribution and Control of Hazardous Substances
Indonesia updated its regulations for the Distribution and Control of Hazardous Substances on October 10, 2024, with the release of Regulation No. 25/2024. The new regulation introduces changes to how hazardous substances are distributed, controlled, and potentially stored or used within the country. While specific details are not provided, this revision may impact various industries that handle or rely on hazardous chemicals, potentially affecting safety protocols, licensing requirements, or reporting obligations for businesses operating in Indonesia.
Energy Efficiency
Indonesia has implemented two key regulatory changes to enhance energy efficiency and promote renewable energy in 2024.
MEMR Regulation No. 11 of 2024: This regulation shifted the authority for setting and enforcing local content requirements for power projects from the Ministry of Industry to the Ministry of Energy and Mineral Resources (MEMR). The change aims to streamline the regulatory process and address challenges in meeting local content thresholds, particularly for solar projects.
MEMR Decree No. 162.K/EK.06/DJE/2023: Although introduced in December 2023, this regulation took effect on December 21, 2024. It mandates that televisions sold in Indonesia must display the Indonesian Energy Saving Label, featuring a one-to-five star rating system to indicate energy efficiency. This decree applies to LCD and LED televisions with screen sizes up to 55 inches, demonstrating Indonesia's commitment to promoting energy-efficient consumer electronics and raising public awareness about energy consumption.
Amendment to the Indonesian Mining Regulatory Framework
Indonesia recently amended its mining regulations with the Government Regulation No. 25 of 2024 ("GR 25/2024"). This regulation modifies Government Regulation No. 96 of 2021, introducing several key changes. Notably, GR 25/2024 allows religious organisations to obtain mining licenses, a move that has generated debate. Other key changes include streamlined licensing procedures, stricter environmental controls, and a focus on utilising domestically processed minerals. These amendments aim to modernise the mining sector and promote economic growth while emphasising responsible mining practices.
Thailand
Climate Change Act
Thailand introduced a new Climate Change Act in February 2024 to meet its commitments under the Paris Agreement. This legislation introduces innovative strategies to reduce greenhouse gas emissions and creates a Climate Change Fund. The Act significantly affects major industries, including energy, manufacturing, transportation, agriculture, mining, and construction.
Key Features of the Climate Change Act
Creation of a national greenhouse gas emissions database
Implementation of an emissions trading system
Introduction of carbon taxes
Mandate for developing and regularly reviewing a national-level plan for climate change adaptation
These measures promote sustainable practices and enhance Thailand's resilience to climate change impacts.
Malaysia
Occupational Safety and Health Act (OSHA) Amendments
Malaysia implemented major updates to its Occupational Safety and Health Act (OSHA), which took effect on June 1, 2024. These changes represented a major reform in workplace safety regulations. Under the new regulation, businesses must comply with several essential requirements:
Obtain approval from the Director-General before operating designated plants
Appoint a safety coordinator if you have five or more employees
Register competent persons for plant operations
Provide mandatory occupational safety training
Non-compliance penalties have increased by a lot. Malaysian fines now range between MYR 100,000 to MYR 500,000, depending on the violation type. Company directors and officers could face joint liability for workplace safety breaches, along with these fines.
Energy Efficiency and Conservation Act 2024 (EECA)
Malaysia's energy landscape is set for a dramatic shift with the Energy Efficiency and Conservation Act 2024 (EECA), which came into force on January 1, 2025. This act introduces new requirements for businesses and buildings to manage energy consumption more efficiently. Large energy consumers, using 21,600 GJ or more annually, now face new responsibilities. Key requirements include:
Appointing a registered energy manager
Implementing an energy management system
Submitting regular energy efficiency reports
Conducting mandatory energy audits every five years
The act also affects manufacturers and importers, who must ensure their products meet new energy efficiency standards and labelling requirements. With penalties of up to RM50,000 for non-compliance, businesses are compelled to prioritise energy efficiency, potentially leading to long-term cost savings but requiring initial investments in systems and personnel.
Vietnam
In October 2023, Vietnam's Department of Industry and Trade (DOIT) initiated discussions on chemical substance regulations, leading to significant changes in 2024. The Minister of Industry and Trade issued Amendment 1:2024 QCVN 05A:2020/BCT on October 10, 2024, modifying the National Technical Regulation on Safety for hazardous chemicals. This amendment, effective from April 15, 2025, introduces enhanced safety measures such as leak warning devices, surveillance cameras, and specific storage requirements for various chemical types. It also mandates the use of personal protective equipment during incidents. Existing facilities must comply by April 15, 2026. These changes are part of Vietnam's broader efforts to reform chemical management, including amendments to the Law on Chemicals expected to take effect on May 1, 2026, demonstrating the country's commitment to aligning with international safety standards in chemical-related industries.
Singapore
New Rules for Machinery and Dust Regulations
The Ministry of Manpower in Singapore announced on November 29, 2024, new safety regulations for high-risk machinery and combustible dust, effective January 1, 2025. These regulations aim to enhance workplace safety by focusing on machinery safety standards, safe handling of combustible dust, and increased responsibilities for manufacturers and suppliers.
Changes to the Building Control Act
Singapore has taken steps to strengthen its green building standards. The country wants 80% of its buildings to be green by 2030. This means owners of energy-intensive buildings must meet stricter mandatory environmental sustainability standards during new construction or major updates. Set to take effect in the third quarter of 2025, the amendment establishes a new Mandatory Energy Improvement (MEI) regime. This regime targets energy-intensive buildings with a gross floor area of 5,000 square meters or more, encompassing various building types such as retail, office, and educational facilities. Under the MEI, building owners must appoint qualified professionals to conduct energy audits and develop Energy Efficiency Improvement Plans (EEIP) aimed at reducing the building's energy use intensity by at least 10% from pre-audit levels. Owners have three years to implement these measures and must maintain the reduced energy consumption for one year thereafter.
Proposed Amendments to Sewerage and Drainage Act
PUB, Singapore's National Water Agency, announced on November 11, 2024, that it is proposing amendments to the Sewerage and Drainage Act (SDA) to strengthen regulations and enhance the protection of Singapore's water resources. Key proposed changes include increased penalties for illegal discharges into sewers, stricter controls on trade effluents, and measures to safeguard the stormwater drainage system. These amendments aim to ensure the sustainable production of NEWater, improve flood resilience, and maintain a clean and healthy environment.
Philippines
Regulatory Advancements in Energy Efficiency and Conservation Act
The Philippines has taken significant steps to enhance energy efficiency in 2024. On May 27, the Department of Energy (DOE) promulgated Circular No. DC2024-05-0011, titled "Rules on the Administration and Enforcements under the Energy Efficiency and Conservation Act." This circular establishes the framework for implementing and enforcing energy efficiency measures across various sectors in the country, aligning with the nation's commitment to sustainable energy practices. Building on this initiative, the DOE released draft guidelines to enhance compliance among designated establishments. These measures aim to improve energy efficiency and promote sustainable practices across various sectors, aligning with global environmental goals.
Keeping Up with Changing EHS Regulations
ASEAN's regulatory landscape has transformed in 2024 with tougher requirements for environmental protection, workplace safety, and sustainability. These changes impact businesses and must now follow stricter compliance rules.
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Disclaimer: The information presented in this article is for informational purposes only and should not be construed as legal advice.
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