Countries across Association of Southeast Asian Nations could create a major economic and industrial opportunity by developing regional recycling supply chains that treat waste as a valuable resource, according to sustainability investors and circular economy experts.
During a panel discussion focused on expanding Extended Producer Responsibility (EPR) systems in ASEAN, Rob Kaplan, founder and CEO of Circulate Capital, said the region should reconsider how recyclable materials and waste are traded between countries. He noted that stronger cooperation could help Southeast Asian nations secure raw materials, reduce reliance on virgin resources and strengthen manufacturing industries.
Kaplan explained that many people still view waste trading negatively, but he believes ASEAN has the potential to build interconnected recycling networks similar to its successful electronics manufacturing supply chains. He added that recycling systems limited to individual countries may struggle to scale effectively, especially in developing economies where infrastructure remains inconsistent.
According to Kaplan, a regional approach would allow recyclable materials collected in one nation to be processed and reused in another, creating larger economies of scale. He pointed to the combined recycling potential of countries such as the Philippines, Malaysia and Indonesia, suggesting ASEAN could eventually compete with major recycling markets like India.
The discussion comes as governments and industries across Southeast Asia increase investments in circular economy initiatives amid concerns over supply chain disruptions, fluctuating commodity prices and long-term resource security. Industry leaders are increasingly viewing plastic waste, metals and electronic scrap not only as environmental challenges but also as alternative raw materials for manufacturing.
The Philippines, among the first ASEAN members to introduce mandatory EPR regulations, has already reported higher plastic waste recovery rates as companies surpass collection targets. However, officials and businesses say the region still needs more recycling facilities, standardized regulations and coordinated policies to fully establish cross-border recycling systems.
Antonio del Rosario, president of Coca-Cola Philippines, said local recycling facilities are facing increasing competition for recyclable plastic feedstock due to rising global demand for recycled materials. He noted that while the company operates a bottle-to-bottle recycling plant in Cavite, some recyclable plastics continue to be exported because international buyers offer higher prices.
Regional authorities are now discussing ways to align recycling regulations, environmental standards and waste management practices across ASEAN. Jonas Leones from the Department of Environment and Natural Resources said ASEAN working groups are exploring policy coordination, shared technology and unified standards related to plastic pollution and sustainability initiatives.
The Philippines is also promoting the proposed ASEAN Strategic Environmental Plan during its ASEAN chairmanship to encourage stronger regional cooperation in circular economy development, recycling infrastructure and environmental governance.
Experts believe that deeper regional integration could help ASEAN become a leading global hub for recycled materials processing, similar to its established role in electronics and semiconductor manufacturing. Beyond environmental benefits, such efforts could create new industries, attract green investments and improve the region’s resilience against future supply chain disruptions.