Regulatory Compliance for
Scrap Metal Dealers in Malaysia
The scrap metal industry in Malaysia is highly regulated, requiring dealers to obtain various permits and licenses to operate legally. MIMTA members are dedicated to combating crime and reducing opportunities for stolen materials to be sold.
As an association, MIMTA collaborates with the Royal Malaysia Police on the Metal Theft Working Group and maintains an active working relationship with police headquarters.
Guidelines for MIMTA Members
MIMTA emphasizes the following practices for its members:
1. Obtain and maintain a proper police license and local council permit to operate your business.
2. Operate within the proposed hours of 7:00 AM to 7:00 PM, subject to local council approval for any special extensions.
3. Renew your license at least three months before its expiration date.
4. Update daily purchase and sales records in the Police Record Book as per regulations.
5. Ensure all foreign labourers working on the premises have valid permits and employee passes issued by your own company. Third- party permits are not allowed.
6. Keep the premises clean at all times.
7. Dispose of garbage properly at designated dumping areas specified by the local municipality.
8. Identity Verification.Scrap metal dealers must verify the identity of all sellers.
Individuals: Sellers must provide a valid photographic ID that includes their full residential address or a formal document.
Companies or Service Providers: If the goods are sold by companies or service providers, dealers must obtain the official tender award letter and the SSM documentation for record-keeping.
Additionally, dealers should record the vehicle or truck number that delivers the goods.
Offenses
1. BUSINESS Dealing without a License
– First Offense
– Second and Subsequent Offenses
2. Failure to Display Signage
– Failure to conspicuously display a sign within their premises
3. Prohibited Dealings
– Dealing with scrap metal outside of the hours 7:00 AM to 7:00 PM
– Dealings with individuals under 18 years old
– Dealings with individuals who do not fully satisfy identity verification requirements
4. Failure to Report
– Failure to report lost or stolen property
5. Illegal Handling
– Removing, defacing, or destroying scrap metal from infrastructure such as roads, bridges, railways, pipelines, telecommunication systems, electricity, water, and sewerage, or any government infrastructure project.
6. Record Keeping
-Failure to maintain a register as prescribed in the POLICE LICENSE Schedule
7. Unauthorized Operations
– Dealing with scrap metal outside of specified premises without authorization
– Allowing scrap metal of unknown origin into one’s premises
Reporting Stolen Metals
MIMTA Metal Recyclers work closely with the Royal Malaysia Police to combat metal theft.
Commonly stolen items include copper products such as WIRES, hot water cylinders, and cables, as well as batteries, manhole covers, and decorative garden items.
The association urges immediate reporting of thefts to the nearest police station. Prompt reporting is crucial as thieves often attempt to sell stolen items quickly. Under-reporting of metal theft remains a significant issue in the industry. It is illegal for metal recyclers to knowingly purchase stolen items; however, doing so allows them to capture the seller’s identification, aiding police investigations and the prosecution of offenders.
By authorizing a recycler to buy a stolen item and collect the seller’s information, you agree to reimburse the recycler for their payment.
Cooperation with the police is essential in seeking compensation through the court system.