he constant struggle by the local authorities in addressing the waste problem would call for athorough examination of the economics of waste management, as well as the need to search forthe most appropriate enviro-economic policy instrument that can be employed in the context of afast-paced developing economy such as Malaysia. A number of instruments have been put intopracticebyvariousauthoritiesinMalaysiain particular,andinothercountriesingeneral, buttheeffectivenessofeachis beingquestioned.It isherebyproposed that anewinstrument beintroduced in Malaysia, which is a variation of the “Polluters-Pay” Principle, as outlined in the9th Malaysia Plan (2006-2010). The primary target ought to be the consumers, and notnecessarily the producers: those who participate in a recycling scheme are not required to pay acertain levy when purchasing new goods. In return, when they deposit the unwanted items intorecycling bins designated for different types of materials, they will be rewarded with equivalentcredit points that can be redeemed at points of sale. It is anticipated in at least 7 aspects if apositiveimpactoftheapplicationoftheproposedinstrumentwouldberealized.Thus,thewasterecycling industry, as envisaged since the 8th Malaysia Plan (2001-2005), would become areality.