Malaysian small and medium-sized enterprises (SMEs) are rethinking traditional ICT procurement and it’s reshaping the way they do business. Beyond one-time purchases, models like leasing, Device-as-a-Service, and subscriptions are helping companies reduce costs, tackle e-waste, and boost their ESG (Environmental, Social, Governance) credentials especially as global pressures mount.
The urgency is real. In events like “ESG Unplugged,” hosted by HP Malaysia and ICT Zone Asia, business leaders emphasized how circular ICT options align with compliance demands, including the EU’s Carbon Border Adjustment Mechanism. This signals a rising expectation that technology strategies should serve both profit and purpose.
Resource waste is staggering: over 90 percent of materials extracted globally end up as landfill, and material processing alone accounts for roughly half of all greenhouse gas emissions data that underscores the climate stakes behind every discarded device.
But the shift to circular models isn’t guaranteed. Studies show that many SMEs lack the awareness, technical skills, and financial flexibility to adopt circular business models fully—yet repairing, refurbishing, and raw-material recovery are among the most practiced approaches where uptake exists.
Malaysia’s green policies offer structural support. Through frameworks like the Green Technology Master Plan and the Sustainable and Circular Economy Roadmap, the government is embedding circularity into national planning and championing recycling targets of 25 percent by 2025, pushing towards 100 percent packaging recyclability by the end of the decade.
Digital transformation is the hidden multiplier. Though digital adoption varies across the region, research shows that when SMEs integrate ICT with environmental goals, they streamline operations without increasing their ecological footprint. Malaysia’s broader push for digital innovation in sustainability is reinforcing that trend.
Why It Matters for SME Leaders
By embracing circular ICT models, SMEs can:
- Protect the planet and their bottom line. Lower upfront costs and reduced disposal expenses result from subscription-based technology platforms.
- Stand out in a crowded market. ESG alignment resonates with investors and customers alike more so as sustainability regulation tightens.
- Build resilience. Circularity reduces dependence on global supply chains, an advantage amid rising trade disruptions and market volatility.
To make this shift happen, stakeholders from startups to policymakers need to collaborate. Equip SMEs with knowledge and incentives to unlock this sustainable tech revolution one device at a time.
