The index reflects growing sustainability willingness (+10%) and implementation (+18%) as MSMEs show greater readiness to embed sustainability into core operations, despite softer awareness, reported The Malaysian Reserve.
Despite this moderation, the findings point to a clear shift from awareness to action. Environmental priorities, especially recycling and sustainable packaging, continue to gain momentum, with older and medium-sized firms are leading the expansion of sustainability initiatives.
While challenges such as funding constraints and technical capacity persist, MSMEs are increasingly aligning with global sustainability trends and building capabilities across key pillars. With targeted support, this momentum could translate into scalable, long-term impact.
Dr. Arun Singh, Global Chief Economist, Dun & Bradstreet, said, “While overall scores dipped 2% year-on-year due to lower awareness among micro and medium enterprises, there was a strong rise in willingness and implementation.
This shows that many firms are shifting from understanding sustainability to actively adopting it. Older businesses continue to link sustainability with better export access, while more MSMEs now see it as a path to higher profits and stronger reputations.
There is also a noticeable shift from governance reforms to environmental action, with recycling and sustainable packaging gaining momentum. Despite financial challenges, especially for older firms, MSMEs are prioritizing sustainable supply chains. With the right policy and financial support, they are well-placed to drive inclusive and resilient growth in the coming quarters.”
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