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Malaysia’s Green Transition is a Call to Action for Businesses

  • Writer: thefxigroup
    thefxigroup
  • Jan 27
  • 2 min read

With ambitious 2050 goals, corporates and SMEs play a key role in shaping a low-carbon and sustainable future.

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Malaysia’s shift toward a greener, low-carbon economy is taking shape with the implementation of the National Energy Transition Roadmap (NETR), which outlines a vision for achieving net zero emissions by 2050. This strategic roadmap is more than just a government plan—it’s a shared mission that requires all stakeholders, particularly corporates and small and medium enterprises (SMEs), to actively participate in building a more sustainable Malaysia.


At the heart of this transition is a need for widespread investment in clean energy, energy efficiency, and climate-resilient infrastructure. While government-linked companies and large corporations like TNB, PETRONAS, and Khazanah have begun scaling solar, hydrogen, and grid modernization projects, SMEs—who make up 97% of Malaysian businesses—are also under increasing pressure to adopt greener practices. From energy consumption to supply chain transparency, their operations are becoming part of the larger ecosystem of climate accountability. With new sustainability reporting requirements on the horizon, particularly those that involve Scope 3 emissions, large firms will need to support their SME vendors and partners in stepping up. In turn, SMEs must embrace this shift as a chance to innovate, improve efficiency, and future-proof their businesses.


The challenges are real. Many smaller enterprises cite cost, lack of knowledge, and limited access to green financing as barriers to implementation. However, support is growing. Platforms like the Simplified ESG Disclosure Guide, sustainability financing portals, and training programs now offer practical tools to get started. In the long term, going green is no longer just an ethical choice—it’s also a competitive one. Global markets, including the EU, are tightening sustainability requirements through instruments like the Carbon Border Adjustment Mechanism (CBAM), which may affect Malaysian exporters without credible ESG credentials. Additionally, many local companies that have integrated renewable energy or waste reduction strategies report significant cost savings and better brand trust.


As Malaysia pushes forward on its green agenda, businesses of all sizes will play a decisive role in determining its success. This is not just a climate strategy—it is a national growth strategy rooted in resilience, innovation, and shared responsibility. Whether through sustainable product design, green supply chains, community partnerships, or carbon reduction programs, companies have an opportunity to lead from the front. It’s time for action that matches ambition.


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