Kuala lumpur: 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.
According to BERNAMA News Agency, Samenta's national president Datuk William Ng highlighted the certification as a significant step in shifting from the traditional linear 'take-make-waste' model to a circular economy approach among SMEs. This initiative aligns with the 13th Malaysia Plan, which emphasizes scaling up SMEs and adopting environmental, social, and governance practices.
Ng emphasized the global energy crisis's impact on costs and supply chains, framing circularity as a strategic economic imperative rather than an option. The programme was officiated by Entrepreneur Development and Cooperatives Minister Steven Sim. Ng noted that the global circular economy could reach US$578 billion by 2026 and potentially unlock US$4.5 trillion in economic output by 2030.
For SMEs, adopting circular economy principles can 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 framework aims to minimize waste and improve resource efficiency. Ng mentioned plans to expand the programme through the ASEAN SME Caucus, harmonizing sustainability standards for approximately 70 million SMEs in Southeast Asia.
The CEC is designed to help SMEs navigate upcoming extended producer responsibility regulations, which hold producers accountable for the entire lifecycle of their products. Early adoption would enable SMEs to redesign products, establish waste data systems, and create new value streams by converting waste into raw materials.
Samenta aims to integrate 15,000 SMEs into the circular economy over the next three years, potentially generating over RM3 billion in additional revenue and cost savings. To support this transition, Samenta formalized a memorandum of understanding with Malaysian Industrial Development Finance Bhd and Credit Guarantee Corporation Malaysia Bhd, ensuring certified SMEs access to green financing and subsidized interest rates starting as low as four per cent. At the event, 20 SMEs received CEC certification, marking them as pioneers in sustainable business practices in Malaysia.