KUALA LUMPUR: ASEAN’s small and medium-sized enterprises (SMEs), which form 99% of the region’s business landscape, risk losing US$237.5 billion in potential revenue if they fail to embrace greener, more sustainable practices.
This stark warning came from Bank Negara Malaysia (BNM) assistant governor Madelena Mohamed during her keynote address at the High-Level Dialogue on Supply Chain Resilience titled “Insights into Greening Value Chains for ASEAN.”
“Transitioning SMEs is more than just about cutting carbon emissions or using cleaner technologies,” she said. “It is about future-proofing economies by improving resource efficiency, reducing costs, and building resilience against climate and other disruptions.”
Citing the mounting pressure of net-zero targets across ASEAN member states, Madelena stressed that decarbonising regional value chains—particularly those involving SMEs—is not optional but essential for sustaining competitiveness, growth and long-term resilience.
Tackling Structural Barriers
Despite the urgency, Madelena acknowledged the structural limitations faced by SMEs, including financial constraints, lack of technical knowledge, and limited access to specialised support.
To address these challenges, Malaysia launched the Greening Value Chain (GVC) programme in 2023, a pilot initiative under the Joint Committee on Climate Change (JC3). The programme blends financing with practical training and tools to help SMEs decarbonise their operations.
“More than 330 SMEs have undergone technical training since the start of the programme, and nearly half have started to measure and report their greenhouse gas emissions,” she noted.
The Role of Anchor Companies
A core component of the GVC is the role of anchor companies—typically large corporations that integrate SMEs into their supply chains and support them with infrastructure, knowledge-sharing and financial aid.
“Under the GVC, we’ve seen large corporates acting as sponsors, allowing SMEs to leverage their resources. This kind of collaboration makes the green transition feasible,” Madelena said.
She outlined three pillars driving the programme’s success: collaboration, innovation and continuous improvement.
“Alone, we can do so little; together, we can do so much,” she said, quoting Helen Keller to highlight the power of collective action.
A Whole-of-Ecosystem Approach
Madelena stressed that meaningful progress requires a whole-of-ecosystem approach where governments, corporates, financial institutions and SMEs work hand in hand.
“A common platform enables each party to build on others’ expertise and experience. This is how we drive comprehensive and scalable solutions,” she said.
Sustaining Long-Term Change
Finally, she emphasised the importance of agility and adaptability in policy and practice. Sustainable transformation, she said, demands frameworks that evolve with SMEs’ needs and continuous commitment from all stakeholders.
“Smart partnerships address resource constraints and foster a culture of innovation. But sustaining the change is imperative—we must stay agile, responsive, and committed.”
As ASEAN eyes deeper regional integration and global supply chain prominence, the message from policymakers is clear: sustainability is no longer a ‘nice to have’, but a non-negotiable pillar of economic resilience.
