Malaysia’s SMEs To Lead Sustainability Drive - Nik Nazmi

KUALA LUMPUR, Jan 21 (Bernama) -- Malaysia’s commitment to sustainability will remain a cornerstone of its economic agenda, with small and medium enterprises (SMEs) expected to play a critical role in advancing the nation’s green ambitions, said Natural Resources and Environmental Sustainability Minister Nik Nazmi Nik Ahmad.

Speaking at the inaugural SME ESG Start Symposium 2025, themed “Forward Faster: Scaling SME Sustainability Through Supply Chains,” today, Nik Nazmi said sustainability must be embraced by all levels of society, namely government, corporate entities and civil society to ensure meaningful progress.

He highlighted the pivotal role of SMEs, which account for 97.2 per cent of Malaysia’s business establishments, contribute over 37 per cent to the nation’s gross domestic product (GDP), and employ nearly half of the workforce. 

“In the context of ASEAN, SMEs constitute nearly all business establishments and are recognised as key drivers of local communities, innovation, and national identity.

“SMEs are at the forefront of societal change and the cornerstone of local communities. Their ability to adapt, innovate, and lead sustainability initiatives has far-reaching implications on both the domestic and global stage,” he said.

Nik Nazmi said Malaysia’s role as a trading nation further underscores the importance of aligning with global sustainability standards, particularly amid evolving international regulations such as the European Union Corporate Sustainability Reporting Directive. 

He warned that non-compliance could limit market access, posing significant challenges to firms, particularly SMEs integrated into the supply chains of larger corporations.

However, the minister stressed the importance of a “just transition” that equips SMEs with the knowledge and tools to adapt to these changes. 

“To date, the Malaysian Green Technology and Climate Change Corporation (MGTC) has trained over 10,000 SMEs, focusing on practical skills to adopt sustainable practices. 

“Collaborations with global organisations, including the United Nations Development Programme (UNDP), have also been pivotal in transferring technical expertise,” he said.

Nik Nazmi further called on multinational corporations and government-linked companies to support SMEs in navigating the sustainability landscape, urging them to share resources and expertise.

“Big corporations have the capacity to employ chief sustainability officers and access global best practices. 

“It is their responsibility to extend that knowledge to SMEs, who form the backbone of their supply chains,” he added.

-- BERNAMA