The Small and Medium Enterprises Association of Malaysia (SAMENTA) today officially launched the ASEAN Circular Economy Certification (CEC) for SMEs, marking a historic milestone in the region’s transition toward sustainable and regenerative business practices.
Officiated by Steven Sim, Minister of Entrepreneur Development and Cooperatives (KUSKOP), the program is the first of its kind in ASEAN and is supported by Global Reporting Initiative (GRI), the provider of the world’s most widely used sustainability reporting standards. Following its Malaysian debut, the certification will be rolled out across the region via the ASEAN SME Caucus to unify sustainability standards for the 70 million SMEs in Southeast Asia.
In his speech, YB Steven Sim highlighted that amid the current global supply disruptions arising from the West Asia conflict and energy crisis, circular economy practices are no longer optional. He stressed that Malaysian businesses must continue to adopt best practices to remain competitive and seize opportunities in an increasingly uncertain environment.
“Malaysia is well positioned as a safe and reliable destination for trade and investment. Initiatives such as circular economy certification will support our SMEs in moving up the value chain and competing on quality, not just cost,” Sim added.
“KUSKOP stands ready to support SMEs in this effort. I have asked SME Corp to work closely with SAMENTA on the Circular Economy Certification programme, and we look forward to further collaboration with financial institutions under KUSKOP, including SME Bank and Bank Rakyat, to support SMEs in this transition,” Sim said.
A Multitrillion-Dollar Opportunity
The launch comes at a critical juncture as the global circular economy market is projected to reach USD 578 billion by 2026 and could contribute up to USD 4.5 trillion in additional economic output by 2030.
“Circularity is no longer just an environmental choice; it is a strategic economic imperative,” said Datuk William Ng, National President of SAMENTA. “With the current global energy crisis driving up operational costs, circular practices allow SMEs to decouple growth from finite resource consumption, reducing energy intensity and insulating businesses from volatile commodity prices.”
“We expect to bring 15,000 SMEs into the circular economy over the next 3 years”, Datuk William Ng added. “By optimizing resource recovery and implementing closed-loop supply chains, we anticipate this will generate over RM 3 billion in collective additional revenue and operational cost savings for these SMEs, effectively turning waste streams into profit centres.”
Preparing for Extended Producer Responsibility (EPR)
The CEC is a vital tool for SMEs to navigate Malaysia’s upcoming Extended Producer Responsibility (EPR) regulations, which hold producers financially accountable for the entire lifecycle of their products; including end-of-life management. By adopting the CEC framework, SMEs can:
Redesign products for durability and recyclability to lower future EPR compliance costs.
Establish waste data systems required for mandatory reporting under the Circular Economy Blueprint 2025–2035.
Tap into New Value Pools by transforming waste into raw materials, a shift that can reduce greenhouse gas emissions by up to 39%.
Use GRI Standards as a reference to strengthen waste and resource data systems, providing SMEs a credible first step toward international sustainability reporting.
Driving Sustainability in the SME Ecosystem
The CEC programme provides a structured pathway for SMEs to minimize waste and maximize resource efficiency. The launch was witnessed by:
Dato' Sri Khairul Dzaimee bin Daud, Secretary General of KUSKOP,
Dr. Allinnettes Adigue, Head of ASEAN Regional Hub, GRI,
Professor Joseph Cherian, President of Asia School of Business,
Yee Chee Mun, Chief Executive of Wezmart International Berhad.
Recognizing Early Adopters and Strategic Alliances
The ceremony honoured the first 20 recipients of the CEC, pioneer SMEs that have successfully integrated circularity into their operations.
SAMENTA also exchanged a Memorandum of Understanding (MoU) with MIDF and Credit Guarantee Corporation Malaysia Berhad (CGC). Represented by Azizi Hj. Mustafa (CEO, MIDF) and Mohamed Nazri Omar (PCEO, CGC), these partnerships will facilitate easier access to green financing and interest rate subsidies for certified SMEs.
This content is provided by SAMENTA
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