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[MUSIC PLAYING]

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JOSE PUPPIM DE OLIVEIRA: Hello,
I am Jose Puppim de Oliveira.

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I am an MIT-UTM
business scholar.

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This video shares some
lessons of my research

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on urban innovation using case
of waste management in Penang,

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Malaysia.

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Urban innovation means
doing things differently

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in the urban context.

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Innovation is important for
improving urban services

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in a context where many
cities around the world

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face increasing
budgetary constraints.

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Interaction among
different governmental and

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non-governmental actors
are key to innovation.

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Interactions can bring new
resources and knowledge

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to solve urban problems
more effectively.

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The waste sector in
Malaysia particularly

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offers an interesting laboratory
for urban innovations.

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The country has tried to improve
waste management effectiveness

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in recent years, making a
series of institutional change,

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such as decentralization
of waste management

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at the federal level.

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DR. MOHD PAUZE BIN
MOHAMAD TAHA: Previously,

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the waste management
and public [INAUDIBLE]

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is under the purview
of each government,

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and being implemented
or being responsible

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is under the local government.

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Somehow, they have a difficulty
to provide sufficient funds

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to manage.

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At the same time do not
have expertise or manpower

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to manage the solid
waste as previously.

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Almost all the waste is
sent to the dumping ground.

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Local government asking
federal government

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to provide the fund for them.

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We also want the
local government

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to focus on other
areas of services.

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So that's the reason why the
federal things is better.

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So the responsibility
of managing the waste

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is put on the federal
responsibility.

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JOSE PUPPIM DE OLIVEIRA:
Peneng Island in Malaysia

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decided to keep waste
management under local control.

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GUEST SPEAKER: Actually, the
urban services department

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is in charge of solid
waste management,

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and also public cleansing is the
core business of the council.

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The most challenging
part in Penang Island

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is domestic waste.

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Penang Island [INAUDIBLE]
around 550 tons of waste

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is being disposed.

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DR. LIM MAH HUI: The city
council spends about 40%

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of its budget just
to dispose of waste.

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GUEST SPEAKER: Our recycling
rate at the moment is 27%.

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With the active role of the
recycling agent, the NGOs

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and the environmental group,
in 1998, the domestic waste

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around 700 tons.

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Now it's really-- it's
around 440 tons per day.

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So how we manage to reduce it?

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In Penang, we had a very quite
active role of the stakeholders

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doing recycling.

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JOSE PUPPIM DE OLIVEIRA: Urban
innovations reduce the waste.

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We are going to see two
of those initiatives

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to understand how urban
innovations emerge

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through different kinds of
institutional arrangements.

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BROTHER SIOW EK: This the
Recycling and Education Center.

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More important is education to
spread and actually encouraging

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more people to do
recycling together.

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And in Malasya, it's a long
time the recycling stopping it's

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not part of the life
[? whole ?] practices yet.

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So we have to set up the
proper infrastructure

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to teach the residents how
recycling should be done,

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so that when they
go back home, they

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know how to actually
save the item

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into the different category.

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So we had about 20
were our volunteers.

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In average, per
man, we are running

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about 10 tons of material.

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That cover plastic,
papers, metals.

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All proceeds from
the recycling are all

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channelled towards
the dialysis center.

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LEE MEOW HONG: [INAUDIBLE]
Tzu Chi Dialysis Center,

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actually, we started in 1997.

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From the first day, it's
actually free of charge.

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Everyone interested to know
how we survive for the past 18

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years.

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About 70% comes from
donation from the public.

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Another nearly 30% comes
from our recycling.

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BROTHER SIOW EK:
Recycling Education Center

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is something very new.

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When they equate recycling
center equal to rubbish center.

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So when we want to
set up this center,

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the resident community say,
no, we cannot allow a rubbish

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center set up.

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Then we have to explain
to them, we are not

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setting up a rubbish center.

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We are setting up
an education center.

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No smell.

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Line is clean.

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JEFFERY HO: And there is
a mosquito-infested area.

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Tzu Chi was willing to
come here to set it up,

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so we work along with them.

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BROTHER SIOW EK: We
actually work out

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with the MBPP, the council.

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They do actually facilitate.

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They actually rent to us at
a very minimum rental cost.

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Also, they are very supportive
of our recycling effort.

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And at the same time,
by doing recycling,

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we also reduce the
amount of rubbish

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that they had to handle.

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The whole country goes
for solid waste recycling.

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So we're actually
two years ahead.

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Go green, save lives.

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LEE MEOW HONG: From
the recycling, besides,

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we are doing
environmental protection.

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We actually can save life.

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MAGESWARI SANGARALINGAM: So
in terms of waste management,

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it is not the right way
to just think of disposal.

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We should try to
reduce the consumption

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so that we will also reduce
the production of waste.

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We are trying to promote
communities to be involved.

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From the community, it goes
to the local government.

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At least 45% to 50% is
organic waste or food waste.

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How, in the first place, can you
reduce food waste, the kitchen

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peelings or the green waste
which can go into composting.

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JOSE PUPPIM DE OLIVEIRA:
Composting is the second case

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of urban innovation.

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You reach the private
sector partners

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with this public sector
in civil society.

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SOH YEW AUN: Most
of the problem is

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that the people expect
the government to handle

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the obvious.

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Waste is not their problem.

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It's government's problem.

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How people look at food waste,
because to them, it is a waste.

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But to the world, it
is actually a resource.

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Most recycling companies
don't survive for long,

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because the cost is too
high to do recycling.

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And the economic return
sort of value is too low.

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The only way for them to make
money is, of course, then

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to look at government subsidies,
looking at government credit

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mechanisms.

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We have come up with
something that we know

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that is economically feasible.

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[NON-ENGLISH SPEECH]

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CHIN KEE WONG: Methodist Boys'
School, a few years back, we

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were approached by
one of our old boys,

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who also happened to be
a councilor in the city

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council in Penang.

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So he came up with the idea
of turning the school green.

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All canteen waste,
especially food waste,

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churned up in the
machine and converted

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into enzymes, which later we
converted into fertilizer.

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And that fertilizer, we
brought to our eco-green farm.

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NG CHUN WEI: We have a
daily schedule for Monday

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to Friday for all
these food [INAUDIBLE]

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to collect the food waste
from the canteen just

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to be processed here.

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WONG CHIEW LEE: We
have the fruit section.

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We also have the herbal
section, kitchen remedies.

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Over the other
side, you will find

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that we have this rainwater
harvesting system.

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So this is some collaboration
with USM, [NON-ENGLISH].

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SOH YEW AUN: In Penang Hills,
we deal with the end product

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differently.

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We ferment the food
waste here itself,

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without taking back
to the factories.

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And then we use the fermented
food waste to treat sewage.

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And the [INAUDIBLE] has got no
smell and no oil accumulation,

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no grease accumulation.

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If you ask me, I
think a lot of things

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work better on a small
scale than on a large scale.

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Everybody has to cooperate.

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You can develop the best
machines in the world,

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but if the people
don't cooperate,

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the machine's not
going to run by itself.

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Food waste doesn't get
separated by itself.

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You need people.

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Everybody has to
chip in some way.

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And this is where we are
going on with the schools,

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to start teaching the students
of the importance of actually

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separating your food
waste and making sure

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that they're going to
the correct places.

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JOSE PUPPIM DE OLIVEIRA: Three
main lessons from the case.

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First, innovation
capabilities were

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created by involving
various stakeholders.

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Second, broad
stakeholder involvement

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brought resources, like
knowledge and finance

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from various sources.

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These would not be possible if
a stakeholder was working alone.

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Third, innovations were
able to connect waste

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with other issues,
such as health, sewage

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treatment, and education.

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Innovation can overcome problems
of collective action, where

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many stakeholders
must work together.

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MAGESWARI SANGARALINGAM:
There should

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be awareness amongst
the communities

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on how to reduce the waste, and
also in terms of the industry.

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And so there are lot of
players in the field of waste

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management which everyone
has to take part in.

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JOSE PUPPIM DE OLIVEIRA: The
state and local authorities

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have helped to scale up such
initiatives by providing

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support to coordinate
the different efforts

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from federal government,
civil society,

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and link them with citizens.

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MUBARAK BIN JUNUS: We
still feel that there

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is something to be done more.

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We already come up to the policy
in line with the federal policy

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to come up with the
mechanism of collections.

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We are now going to use the
same mechanism as federal,

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what they are doing.

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We are going to
improvise this according

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to our own local environment.

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JOSE PUPPIM DE
OLIVEIRA: A combination

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of top-down efforts
from governments

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to support initiatives of
bottom-up urban innovation

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brings the right combination
to nurture broad transformation

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in urban services delivery.

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MAGESWARI SANGARALINGAM:
The way you're disposing it,

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whether you're landfilling
or you're incinerating,

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or you're just dumping,
it's all causing problems

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for the climate, too, because
of the greenhouse gas emissions.

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ANTHONY CAPON: How can we make
a city suitable for our bodies

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and our health?

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We have designed and
managed cities often

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in the interest of
motorcars, rather than

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in the interests of people.

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We need to rethink the city
in the interest of people.

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MUBARAK BIN JUNUS:
Even though there

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is some initiative
being done, but still

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the mindset still
needs to be changed.

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DR. YUEH-KWONG LEONG: The
current concept of development

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is the more buildings they have,
the more industries they have,

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the more developed you are,
the better you will become.

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But they have not
factored in, actually,

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the cost in terms of pollution,
in terms of traffic congestion.

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JOSE PUPPIM DE OLIVEIRA:
Creating the capabilities

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to innovate in governments
and civil society

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is crucial to combating global
problems such as climate

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change, which requires a higher
degree of collective action

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to design and manage the
cities of the future.

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This will require
innovation in our thinking

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about how we carry
out urban development.

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[MUSIC PLAYING]