4-4. A Comparative Look at EHS Laws in Southeast Asian Countries and Key Points for Companies Expanding There

Recent economic growth in Southeast Asian countries has led to a rapid strengthening of environmental, health, and safety (EHS) regulations. When Japanese companies expand or build supply chains in the region, it's essential to understand the regulatory differences in each country and take EHS measures that align with local conditions. This article compares regulatory trends in key countries—Thailand, Vietnam, Indonesia, Malaysia, and the Philippines—and explains key points that expanding companies should be aware of.

1. EHS Regulations in Thailand

Thailand's regulations are based on its Labor Protection Act and Environmental Protection Act, with strict rules on chemical substance management and industrial waste disposal. Factories in industrial estates, in particular, are required to undergo regular EHS audits and submit emissions reports. Japanese companies must comply with both their head office standards and local regulations.

2. EHS Regulations in Vietnam

Vietnam is simultaneously strengthening worker protection and environmental conservation through its Labor Safety and Health Law (enacted in 2015) and Environmental Protection Law (revised in 2020). Obtaining permits and undergoing audits for wastewater and waste management are essential, as violations can lead to operational shutdowns and hefty fines. There's also a growing trend of disclosing working conditions and chemical usage within the supply chain.

3. EHS Regulations in Indonesia

Indonesia's regulations, based on its Environmental Protection Law and Labor Law, impose strict limits on emissions and working conditions. Environmental Impact Assessments (AMDAL) are mandatory for large-scale factories, and failure to complete them can result in a refusal of operating permits. Furthermore, companies are required to conduct occupational health and safety training and regular site audits.

4. EHS Regulations in Malaysia

In Malaysia, the Environmental Quality Act and the Occupational Safety and Health Act are the main frameworks. In chemical substance regulation, in particular, the submission of Safety Data Sheets (SDS) and labeling based on the Globally Harmonized System (GHS) are mandatory. There is also a requirement for equipment inspections based on the Factories and Machinery Act, making a well-structured safety management system essential.

5. EHS Regulations in the Philippines

The Philippines, through its Occupational Safety and Health Standards and Environmental Laws, requires companies to implement comprehensive EHS measures. Given the risks of natural disasters like typhoons and earthquakes, developing a Business Continuity Plan (BCP) is especially important. A management system that combines worker protection with disaster response is required.

6. Key Considerations for Expanding Companies

• Regular Monitoring of Local Laws: Regulations are frequently revised, so it's crucial to stay updated on the latest information.

• Avoid Duplication of Management with Head Office Standards: A flexible system is needed to maintain global standards while accommodating specific local requirements.

• Strengthen Supplier Management: It's essential to audit the EHS compliance of local suppliers to prevent the risk of violations.

• Thorough Employee Training: Providing EHS training and fostering a safety culture among local employees is indispensable.

Summary

EHS regulations in Southeast Asian countries are not uniform; each country places an emphasis on different aspects based on its specific conditions. By understanding the unique characteristics of each country and managing EHS risks appropriately, companies can ensure compliance and achieve sustainable business growth.