Packaging for Delivery in Malaysia
Exploring sustainable strategies in packaging design
What is the current context when it comes to sustainable packaging in Malaysia?
This question came to mind after writing about re-imagining packaging solutions against the backdrop of the historic city of Kolkata, India (click here for the article)
So I started to explore what has been shared on sustainable packaging in the GDM group. The aim is to synthesize and compile content and get an initial idea of the local context of sustainable packaging.
Strategies Adopted by Local Companies
One of the common and effective strategies in designing packaging for delivery is ‘Recyclable Material’.
‘Recyclable material’ includes materials that can be re-processed or re-manufactured to make similar products or other things (more likely they will be of lower quality and functionality compared to the original). When it comes to packaging design, recyclable materials such as corrugated cardboard, and paper are used to replace conventional plastic solutions.
Tanamera, The Green Factory, and Lumika are a few examples of companies that opt to use ‘Recyclable Material’ in their product packaging. To package their home objects made from recyclable plastic, Lumika chooses honeycomb paper instead of bubble wrap. Similarly, the Green Factory also opt for recycled brown paper while Tanamera packaged their products using unbleached recycled paper.
Packaging materials are often required in large quantities yet their lifetime of use is particularly short.
In this context, ‘Biodegradable Material’ is a good alternative.
‘Biodegradable Materials’ can be natural materials, pure polymers, blended products, or composite. In essence, these materials can be decomposed in a natural environment. However, it is important to note that there are different types and levels when it comes to biodegradability.
The use of ‘Biodegradable Material’ in packaging fittings creates less long-term waste in landfills. It also improves the recycling process. The Green Factory and Yourgut BB use jute string in their packaging fittings. While Lumika uses water-activated tape instead of common adhesive tapes.
The Green Factory also explored the use of wood shaving as an alternative to bubble wrap. Wood shaving is a ‘Natural material’, ‘Biodegradable Material’, and also a ‘Waste Material’.
Another strategy, ‘Design for Reuse’ had been adopted by Tanamera and The Green Factory. In this case, both companies use the fabric with traditional batik motifs as one of the means to package their products.
The fabric used in the packaging can be re-used and re-purposed by the customers. This packaging style is similar to the traditional art of wrapping gifts in Japan, known as furoshiki. The use of beautiful fabric as alternative packaging materials can increase the chance of the materials being kept and reused in the future.
Lastly, the integration of traditional textiles in new designs is connected to the ‘Element of Cultural Heritage’. These are valuable resources when it comes to sustainable development. The integration of traditional materials and knowledge can safeguard and sustain elements of cultural heritage. Furthermore, identifying sustainable values that are rooted locally also empowers local communities.
In 2021, a consortium of researchers from UiTM, UKM, Zalora, and LKL Fruit Trading conduct a study to explore green packaging acceptance in fast-moving consumer goods in Malaysia (Wahab, Osman, Koay, Long, 2021). The study identifies three significant values that influence customers' acceptance of sustainable packaging:
- Functional Value — in relation to disintegration, reusability, recyclability, size, simplicity, cost, quality, and design factors
- Social Value — connected to personal convenience, environmental responsibility, personal lifestyle, social awareness, and encouragement from family, friends, society, and the government
- Emotional value— associated with user-friendly features, attractive and informative packaging, and positive user experience and emotions.
What is obvious from these insights is sustainable packaging needs to be well-designed to increase users’ acceptance. Thus it is vital to integrate sustainable strategies in the early stage of packaging design.
Sourcing for Sustainable Solutions
One of the many barriers when it comes to implementing sustainable strategies in packaging is finding the right suppliers and partners.
To source sustainably, there are a few factors that need to be established. These include finding the right solution that fits your current value offerings, suppliers that shared similar environmental and social principles and standards, and making sure the decision is competitive for the business.
I had an opportunity to talk to Phil Tan, the CEO of Snapp Packaging (M) Sdn. Bhd. who often shares his solutions in GDM. The company specializes in supplying sustainable protective packaging solutions for the local market.
Their solutions include internal and external systems to package products for delivery. Some of the ranges available are air cushions (AIRplus), paper cushions (PAPERplus), and a complete selection of recycled and bio-based materials. The company is the country partner of STOROpack Gmbh, a German-based, family-run company and a specialist in protective packaging and technical molded parts.
According to Phil, the main challenge in the business is being competitive against the conventional packaging system which is cheaper, highly accessible, and familiar to the clients.
At a glance, the imported German paper solutions are notably higher in cost. The air cushions solutions cost 15% to 20% more than the conventional packaging systems.
However, the costs of these sustainable solutions should not be compared directly to the conventional system. With the innovative product features, the cost can be offset across the supply chain and the life cycle of the materials. For example, fewer materials are used, less storage space is required and the compact design lowers the carbon footprints as well as transportation costs.
The paper and air cushions are essentially higher in price but these solutions use significantly fewer materials (by at least 50%) compare to plastic bubble cushions. The value offerings of these products are in line with UN Sustainable Development Goal 12 (SDG 12) — Responsible Consumption and Production.
It is also notable to highlight, in Malaysia, these sustainable packaging materials are subjected to import duties. Whereas conventional packaging materials imported from China are often exempted from tax.
In navigating the local market, the company focuses on the value of its solutions and finding the right client niche. These are mainly clients who already invested in sustainability and are already in the phase of transition. In this phase, the price is not the only factor taken into consideration. The decision-making process is also influenced by other considerations such as:
- The carbon footprints;
- The environment & social impacts across the supply chain
- The environment impacts in the next cycle of life;
- The brand promise and customer’s expectations.
Holistic strategies toward green transitions
In 2015, researchers from Universiti Malaya surveyed 700 manufacturing firms in Penang (Zailani et. al,2015). The study identifies that although firms may have a high sense of social responsibility their motivations toward sustainable practices are mainly influenced by business benefits. This means even if the firms are strong in their sustainable principles their decisions will still be based on what is good for the business. In conventional business practice, this usually means ‘how to reduce the cost?’
The research highlights the importance of proper eco-efficiency practices in sustainable packaging. Eco-efficiency practices include strategies that:
- create value offerings based on human needs for a good life;
- reduce environmental impacts;
- optimize the use of resources throughout the life cycle; and
- take into consideration cost-efficiency and product competitiveness in the market.
Implementing these strategies holistically might seem like an uphill battle. However, these are the means to be resilient in the future where climate actions will be a requirement rather than a selection.
The Importance of Policymaking in Sustainable Packaging
A US study in 1997 by Min & Galle highlights that packaging materials are the largest portion of municipal streams. This was already the case in the 90s. We can deduce that by now this situation is further exacerbated by the growth of e-commerce and online shopping.
The financial and other resources to manage packaging materials after they are being discarded are often hidden.
Why?
The cost of managing, collecting, recovering, and recycling packaging waste is not tangible as they are no longer under the responsibility of the producers and consumers. Costs such as waste management and pollution recovery are often borne by municipals and local authorities i.e the taxpayers and the citizens.
Therefore, strategies to systematically reduce the use of resources and eliminate waste across the supply chain are vital. Such strategies can definitely help the 12th Malaysia plan of reducing GHG emissions to 45% of GDP by 2030.
In summary
There is a lot to unpack when it comes to packaging products for delivery. Content shared on the GDM page indicates that there are efforts in sustainable packaging from the grassroots and there are many more scattered across the country.
Malaysia’s SMEs make up 98.5% of business establishments in the country and contribute to 36.6% of the country’s GDP. In facing climate change, it is important for policymakers to set a blueprint toward a green transition for SMEs in Malaysia.
Efforts are needed from the players inside and outside the supply chain. These include policymakers and academicians to build a resilient approach to packaging for tomorrow.
There is a need for robust policies that support businesses involved in sustainable supply chains or would like to venture into the green space. Tax reductions and exemptions, subsidies, and research grants are a few examples of support that are vital in scaffolding and nurturing a new economy — the circular economy.
*‘Strategies Adopted by Local Companies’ has been synthesized and written based on the content shared in GDM and the official website of the companies only.
*Remarks: Phrases with ‘quotation marks in bold’ are part of Hint Studio's compilation of sustainable strategies. You can find more on these strategies at https://hint-studio.com/dot-strategies
