Transition of SMEs towards Planetary Health
Malaysia faces growing sustainability challenges such as flash floods, biodiversity loss, and public health concerns. In response, the government has launched initiatives like the Net-Zero Carbon Emissions target (2050), Climate Change Bill, and National Action Plan on Business and Human Rights (2025–2030), signalling stronger environmental and social accountability for businesses.
Micro, Small, and Medium Enterprises (MSMEs) form 97% of Malaysia’s businesses and contributed over RM613 billion to GDP in 2023. As part of larger supply chains, they are increasingly expected to meet sustainability standards driven by new policies such as the National Sustainability Reporting Framework (NSRF) and mandatory ESG disclosures for large firms. Though not directly regulated, SMEs face rising pressure to align with these requirements.
To support them, the Simplified ESG Disclosure Guide (SEDG) was introduced in 2023. Yet, many SMEs remain unaware or uncertain about ESG benefits due to limited communication and fragmented support. A more coordinated approach is needed to build their capacity and integrate sustainability into business operations.
To address this, the Global Reporting Initiative (GRI) ASEAN Network, Sunway University’s Institute of Global Strategy and Competitiveness (IGSC), and the Sunway Centre for Planetary Health (SCPH) propose the joint initiative “Empowering SME Sustainability and Growth through Strategic Supply Chain Support” to be formalised through an MoU. This initiative will provide structured training and capacity-building to help SMEs adopt sustainable practices, improve reporting, and strengthen their role in resilient, inclusive supply chains.
