KUALA LUMPUR, April 21 (Bernama) -- The Small and Medium Enterprises Association of Malaysia (Samenta) today launched the ASEAN circular economy certification (CEC), the first certification of its kind in the region, to help small and medium enterprises (SMEs) adopt sustainable business practices and enhance competitiveness.
Its national president Datuk William Ng said the certification marks a significant step in driving a shift from the traditional linear “take-make-waste” model to a circular economy approach among SMEs.
He said the initiative builds on efforts under the 13th Malaysia Plan, which emphasises the scaling up of micro, small and medium enterprises, and the adoption of environmental, social and governance practices.
“We are now in a global energy crisis that is driving up costs and straining supply chains. But today, circularity is no longer optional but a strategic economic imperative,” he said during the launch of the programme here today.
The programme was officiated by Entrepreneur Development and Cooperatives Minister Steven Sim.
Ng said the global circular economy is projected to reach US$578 billion (US$1=RM3.94) by the end of 2026 and could unlock up to US$4.5 trillion in economic output by 2030.
He said that for SMEs, adopting circular economy principles would help reduce reliance on finite resources, lower energy intensity and shield businesses from volatile commodity prices.
Developed with support from the Global Reporting Initiative, the certification provides a structured, internationally aligned framework for SMEs to minimise waste and improve resource efficiency, he said.
Ng said the programme would be expanded across the region through the ASEAN SME Caucus, aiming to harmonise sustainability standards for an estimated 70 million SMEs in Southeast Asia.
“The CEC is also a vital tool for our SMEs to navigate the upcoming extended producer responsibility regulations. These regulations will hold producers accountable for the entire lifecycle of their products,” he said.
He said that early adoption would enable SMEs to redesign products, establish waste data systems, and tap into new value streams by converting waste into raw materials.
Ng said Samenta aims to bring 15,000 SMEs into the circular economy over the next three years, which is expected to generate more than RM3 billion in additional revenue and cost savings.
“To support this journey, we are formalising a memorandum of understanding today with Malaysian Industrial Development Finance Bhd and Credit Guarantee Corporation Malaysia Bhd to ensure that certified SMEs have the necessary access to green financing and subsidised interest rate from as low as four per cent to fuel their green transition,” he said.
A total of 20 SMEs received CEC certification at the event, making them pioneers in advancing sustainable business practices in Malaysia.
-- BERNAMA
