Group raises concern over health risk as water is treated for consumption in Kedah and Penang.
Waste from countries such as Pakistan, Japan and the US are being dumped in this town of half a million people.
C4's K Sudhagaran Stanley says customs should be held liable for allowing the import of unwanted waste.
Thousands of containers carrying discarded electronic parts have made their way into Malaysia, where a booming hazardous recycling industry is taking root.
Recycled metal has also been collected from local Japanese businesses and industry.
In Davos this week, UN, WEF and the World Business Council for Sustainable Development began the first global call to action to go against e-waste.
Malaysians are not aware that many electronic items contain non-biodegradable materials, but can be refurbished and used again, says an e-waste company.
Non-profit Agbogblo.Shine Initiative encourages people working at the dump to turn waste into high-end furniture.
All the machines and components will be sent to an authorised e-waste outlet in Shah Alam for proper disposal.
Japan hopes to collect eight tonnes of gold, silver and bronze from recycling bins to make medals in an environmentally-friendly twist to the next Olympics.