The United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and Temasek Foundation have launched the Green Shift programme to create enabling ecosystems that support small and medium-sized enterprises (SMEs) in accelerating their green transition in Malaysia, the Philippines, and across South-East Asia.

The initiative aims to drive systemic change by strengthening the capacity of both SMEs and the government agencies that support them. It will identify green corporate procurement opportunities, facilitate market linkages between green SMEs and large enterprises, and promote regional-level impact through the exchange of effective practices. Over the next two years, the programme will boost green transition efforts by equipping SME development agencies with training toolkits and coaching SMEs to put green action plans into practice. These plans will not only help businesses operate more sustainably, but also open doors to new markets and corporate supply chains.

Speaking at the launch, Armida Salsiah Alisjahbana, United Nations Under-Secretary-General and Executive Secretary of ESCAP said, “SMEs are the backbone of South-East Asia’s economy, and the green transition cannot happen without them. This partnership between ESCAP and Temasek Foundation will support SMEs turn sustainability into a competitive advantage. Businesses that fail to embed green practices risk falling behind in an increasingly competitive market, while those that do will be better positioned to access new markets, attract investment, and build long-term resilience.”

Ng Boon Heong, Executive Director and Chief Executive Officer of Temasek Foundation, said, “SMEs are central to the region’s low-carbon transition. This programme will equip SMEs with practical tools and partnerships that will enable SMEs to implement green action plans, helping businesses lower their carbon footprint while contributing towards a more sustainable future. Through this partnership with United Nations ESCAP, Temasek Foundation aims to empower SMEs to go green and unlock new market opportunities, driving resilient growth across the region.” 

Both Malaysia and the Philippines have shown strong leadership in supporting the green transition of SMEs through national initiatives. This partnership between ESCAP and Temasek Foundation complements and builds on those efforts. 

In Malaysia, the programme will be delivered in close collaboration with the Ministry of Entrepreneur and Cooperatives Development (MECD) and implemented through SME Corp. Malaysia and the Centre for Entrepreneur Development and Research (CEDAR). Notably, CEDAR has been appointed as ASEAN’s Centre of Excellence for MSMEs in Green Transition, further reinforcing its strategic role in advancing the programme’s objectives and regional reach. In the Philippines, the Department of Trade and Industry (DTI), through its Bureau of Small and Medium Enterprise Development (BSMED) will be leading the programme activities. 

“This initiative is an important milestone in strengthening our national institutional capacity. By equipping SME development agencies like SME Corp. Malaysia and CEDAR with the right tools, knowledge, and frameworks, we are ensuring that our SMEs are well supported in their green transition. This will not only help them adopt sustainable practices but also position our SMEs in Malaysia to be more competitive and resilient in the global marketplace” said Dato’ Sri Khairul Dzaimee bin Daud, Secretary General of the Ministry of Entrepreneur and Cooperatives Development. 

Similarly, Emma Asusano, Director of the Philippines' Department of Trade and Industry's Bureau of Small and Medium Enterprise Development, remarked, “This initiative strengthens the Philippines' ability to guide SMEs in their green transition, unlocking market opportunities and building long-term resilience.”

The Green Shift programme is an important step toward inclusive, sustainable economic transformation in South-East Asia, positioning SMEs at the heart of the region’s green transition. By combining ESCAP’s regional networks and policy expertise with Temasek Foundation’s commitment to fostering resilient and vibrant communities in Asia, the partnership advances a shared vision of green economic growth that leaves no one behind.