An agreement has been reached to provide Sarawak SMEs with access to RM1 billion in green financing to support sustainable practices, announced Deputy Premier Datuk Amar Awang Tengah Ali Hasan.
The memorandum of understanding (MOU) was signed by InvestSarawak, an agency under the state International Trade and Investment Ministry, the UN Global Compact Network Malaysia and Brunei (UNGCNMB) and Alliance Bank on Friday (Nov 10).
Deputy Premier Datuk Amar Awang Tengah Ali Hasan said the MOU would extend RM1 billion in green financing for Sarawakian SMEs in sustainable-trade readiness and business resiliency towards environmental, social and governance (ESG) compliance.
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During the signing ceremony, Awang Tengah emphasized the importance of partnering with organizations such as UNGCNMB and financial institutions like Alliance Bank to provide a seamless transition for SMEs, the backbone of the state’s economy.
InvestSarawak will continue to develop and promote similar initiatives to benefit local SMEs and businesses, aiming to build resilient and sustainable supply chains in Sarawak, according to Awang Tengah.
He encouraged SMEs to take advantage of the opportunity to adopt ESG principles and add value to their products and services.
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He also expressed concern that many SMEs remain cautious about ESG and corporate social responsibility (CSR) initiatives, stating that failure to keep up with current trends could lead to obsolescence in the global economy.
Awang Tengah is confident that Sarawak has the potential to lead ESG adoption, positioning itself as a regional powerhouse for sustainable industries. He highlighted initiatives such as green hydrogen, sustainable aviation fuel, and renewable feedstock cultivation.
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He emphasized that SMEs play a crucial role in the new economy and their ability to accept new business opportunities will determine the strength of Sarawak’s economy.
Awang Tengah added that Sarawak is now focusing on promoting low-carbon solutions and a green economy, with the goal of becoming a regional leader in innovation and high technology-based economy.
“With the post-Covid development strategy, we are promoting growth that results in economic prosperity, social inclusivity and environmental sustainability,” he said.
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