ESG Readiness of Malaysian MSMEs

March, 2 2026

Malaysian micro, small, and medium enterprises (MSMEs) are at a pivotal moment in their sustainability journey. Awareness of Environmental, Social, and Governance (ESG) principles has surged, adoption is growing and many MSMEs see the value of ESG. Yet, measurement gaps, financial barriers, and uneven sectoral readiness risk slowing progress. This research study examines the landscape of ESG policy for MSMEs and assesses how prepared Malaysian MSMEs are to adopt ESG practices within supply chains and as independent businesses. It highlights critical areas where targeted support and policy interventions could accelerate the integration of ESG practices, emphasizing the need for practical, sector-specific templates and resources that lower knowledge barriers.

 

Full report coming soon.

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This fact sheet was developed by the National Association of Women Entrepreneurs of Malaysia (NAWEM), in consultation with APF Canada. With respect for the efforts taken in developing this publication, credit for the content lies with NAWEM. We sincerely appreciate NAWEM's contributions and the important perspective this works brings to the APEC-Canada Growing Business Partnership project.

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