Kloth Circularity Malaysia as Social Business Model Innovation through Fabric Recycling

This study investigates the role of Kloth Circularity Malaysia, a social enterprise, in advancing environmental sustainability through fabric recycling and upcycling initiatives. The issue of increasing textile waste and its improper disposal, including illegal dumping and ineffective recycling systems, presents a significant environmental challenge in Malaysia. The research addresses the problem of limited community engagement and the lack of sustainable textile waste management practices. A qualitative case study approach was adopted, using secondary data collected between 2018 and 2021, which identified 12 upcycling initiatives in Malaysia and focused on in-depth interviews with Kloth Circularity’s co-founders and marketing executive as a current active social enterprise. The findings reveal that Kloth Circularity’s success is rooted in its multi-stakeholder collaborations, community education, and inclusive business models that promote circular economy principles. The discussion emphasizes the importance of public participation, awareness, and industry cooperation in transforming textile waste into value-added products. It concludes that upcycling is a viable solution for textile waste management and recommends expanding educational programs, policy support, and innovative sustainability strategies to enhance environmental outcomes in Malaysia.