Kuala lumpur: Bank Negara Malaysia (BNM) has urged small and medium enterprises (SMEs) to start measuring and reporting their carbon emissions as global buyers increasingly enforce stringent sustainability requirements in supply chains. BNM assistant governor Madelena Mohamed highlighted that the shift towards sustainability is already evident in major export markets, where trade partners demand basic sustainability data from suppliers.
According to BERNAMA News Agency, Madelena Mohamed emphasized that even if SMEs do not engage in direct sales to these markets, their local trade partners often form part of a supply chain that eventually connects to global markets with such reporting mandates. She made these remarks at the JC3 SME Focus Group (SFG) Climate Conference for SMEs 2025.
The demand for emissions data, she noted, is being driven by policies like the EU Deforestation-Free Regulation (EUDR), the Carbon Border Adjustment Mechanism (CBAM), and mandatory Scope 1, 2, and 3 reporting standards adopted by multinational corporations. Domestically, Budget 2026 introduced a carbon tax targeting high-emission sectors such as iron, steel, and energy. While SMEs are not currently taxed, compliance with these standards remains essential for firms involved in the supply chain.
Madelena also pointed out that climate resilience goes beyond managing physical and transition risks, recognizing the opportunities that arise from climate-related transitions. She cited the National Energy Transition Roadmap (NETR) as an example, which outlines Malaysia’s plan to achieve net zero by 2050 and aims to mobilize RM1.2 trillion in investments while creating over 300,000 green jobs. SMEs engaged in solar installation, EV maintenance, green building materials, and waste recycling could directly benefit from these opportunities.
Furthermore, she encouraged businesses to finance their transition, noting that building climate resilience is a long-term investment that can reduce operating costs, open new markets, and enhance customer trust for those who adopt early. BNM has allocated RM3.8 billion in targeted financing, including the Low Carbon Transition and High Tech and Green (HTG) facilities, to assist SMEs in building climate resilience and capitalizing on emerging opportunities.