A Recycling Industry in Distress

In Singapore, paper recycling companies are facing a major setback as prices for waste materials like paper and cardboard continue to plummet. Local firms, reliant on overseas buyers, are grappling with heightened collection and export costs, contributing to a significant decline in recycling efforts.

Why Are Prices Dropping?

Melissa Tan, chairperson of the Waste Management and Recycling Association of Singapore (WMRAS), highlights the financial strain on recycling firms. "With the current market flooding and low prices, exporting paper waste is becoming increasingly unfeasible. Shipping costs are through the roof, and this low pricing erodes profit margins," she explains.

The Struggles of KL Enviro

KL Enviro, a key player processing around 6,000 tonnes of paper monthly, exemplifies the industry's struggles. In 2020, a box of recycled cardboard sold for S$280, but today it's worth just S$140—half the value. This shocking drop is forcing some companies out of the market.

Operational Cost Increases

Mr. Spencer Soong, KL Enviro's executive director, paints a bleak picture. Rising shipping and fuel costs, exacerbated by geopolitical tensions, coupled with inflationary pressures and increased labor costs, are pushing the industry to the brink. Collection of waste is already challenging, and these mounting costs leave many businesses scrambling for survival.

Waning Recycling Rates

Singapore's recycling rate has dropped dramatically from 52% a decade ago to just 32% last year. One reason is the contamination of recyclables in residential blue bins, often tainted with food and drink waste.

Innovative Solutions on the Horizon

In a bid to combat these issues, local sustainability tech company SG Recycle is innovating. With a network of paper-collection machines across Singapore, residents earn three cents per kilogram of deposited paper. Impressively, SG Recycle has achieved a contamination rate close to zero, far superior to traditional bins.

The Cost of Innovation

Despite its success, SG Recycle is not immune to market challenges. Each collection machine, costing S$300, has seen the firm scale back operations from 140 to just 84 machines. CEO Mervin Ng emphasizes the need for government support, such as grants, to sustain their recycling efforts amidst soaring logistics and manpower expenses.

A Call for Government Assistance

Industry leaders hope the government will step in to address these challenges. They believe support, particularly in the form of labor subsidies, could make a significant difference in keeping recycling operations viable and sustainable moving forward.

As the recycling landscape changes, the urgency for innovative solutions and solid support from authorities has never been more crucial.