KUALA LUMPUR: Malaysia is moving away from its traditional reputation as a low-cost manufacturing base, repositioning itself as a secure destination for global technology and trade.
Entrepreneur Development and Cooperatives Minister Steven Sim said the country’s economic narrative has transformed overnight, giving local businesses the leverage to command higher prices on the global stage.
“We have to shift our mentality. We can no longer sell cheaply; price is no longer our competitive edge.
“Overnight, Malaysia has transformed from a cheap destination to a safe destination. You cannot put a price on safety. We are a safe destination for data centres – to trade, to store, and to host tech services,” he said.
Sim said Malaysian businesses are now in a position to offer a “premium” by embracing top-tier Environmental, Social and Governance (ESG) practices, as well as adopting sustainable business approaches.
Sim spoke at the launch of the Asean Circular Economy Certification (CEC) by the Small and Medium Enterprises Association of Malaysia (Samenta) yesterday.
Sim lauded the CEC, calling it a crucial stepping stone for local companies facing increasingly stringent global demands.
Sim also said the government is mobilising four financing institutions, including SME Bank and Bank Rakyat, to fund SME transitions to green and sustainable practices.
“Samenta recently signed an agreement with the Malaysian Industrial Development Finance Bhd, but we want to offer more.
“Under the ministry, we have four financing institutions, which include SME Bank and Bank Rakyat.
“We are more than happy to work with Samenta to support this initiative and the SMEs that will be coming on board. I am asking for a date to sign with these four institutions,” he said.
Beyond financing, the government is also looking to slash red tape for businesses seeking certification.
Sim revealed that he has instructed SME Corp to work directly with Samenta to integrate their standards, proposing a “double-badging” programme.
This would allow local SMEs to simultaneously earn the government’s ESG certification alongside Samenta’s CEC, fast-tracking their ability to export to premium global markets.
“This is a mark of business best practices that we can sell. We have to prepare now,” Sim added.
Samenta’s CEC is touted as the first-of-its-kind programme in Asean, and it is supported by the Global Reporting Initiative, the provider of the world’s most widely used sustainability reporting standards.
