SDG Business In Malaysia

SDG business in Malaysia refers to businesses that align their operations and activities with the United Nations’ Sustainable Development Goals (SDGs). The SDGs are a set of 17 global goals adopted by the UN in 2015, aiming to address various social, economic, and environmental challenges by 2030.

In Malaysia, businesses increasingly recognise the importance of aligning their operations with the SDGs. Many companies are integrating sustainability practices into their business strategies and operations to contribute positively to society and the environment. This includes adopting sustainable production methods, promoting responsible consumption patterns, and supporting community development initiatives.

List of 17 Sustainable Development Goals in Malaysia

Malaysia’s approach to the 17 Sustainable Development Goals includes poverty reduction, educational improvements, environmental conservation, economic innovation, healthcare access, poverty alleviation, gender equality, sustainable urbanization, and climate action. Malaysia’s efforts focus on inclusive growth, technological innovation, and environmental sustainability, emphasising partnerships and collaboration to achieve these ambitious goals.

1. No Poverty

Malaysia has significantly reduced poverty, with the national poverty rate decreasing from 49.3% in 1970 to 5.6% in 2019. The government continues to implement targeted policies and programs to address remaining pockets of poverty, especially in rural areas and among indigenous communities. Efforts include enhancing social protection systems, improving access to education and healthcare, and promoting inclusive economic growth to ensure no one is left behind.

2. Zero Hunger

While Malaysia has largely achieved food security, challenges remain in ensuring nutritional quality and addressing malnutrition in certain population segments. The country focuses on sustainable agriculture practices, improving food distribution systems, and enhancing access to nutritious food for all citizens. Programs to promote urban farming, support small-scale farmers, and reduce food waste are being implemented to create a more sustainable and resilient food system.

3. Good Health and Well-being

Malaysia has a well-developed healthcare system, with universal health coverage through public healthcare facilities. The country is now focusing on addressing non-communicable diseases, improving mental health services, and enhancing healthcare quality in rural areas. Efforts are also being made to strengthen the healthcare workforce, improve health infrastructure, and leverage technology to enhance healthcare delivery and accessibility.

4. Quality Education

Malaysia has achieved near-universal primary education enrollment. Current efforts are directed towards improving the quality of education, enhancing STEM education, and reducing disparities in educational outcomes between urban and rural areas. The country also emphasises upgrading technical and vocational education and training (TVET) programs to align with industry needs and prepare students for the future job market.

5. Gender Equality

While progress has been made in gender equality, particularly in education and health, challenges remain in women’s economic participation and political representation. Malaysia is working to implement policies that promote gender equality across all sectors, including increasing women’s participation in decision-making roles, addressing gender-based violence, and promoting work-life balance to support women’s career advancement.

6. Clean Water and Sanitation

Malaysia has achieved high access to clean water and improved sanitation facilities. Current focus areas include water resource management, reducing water pollution, and improving water efficiency in industries and agriculture. The country also invests in upgrading water infrastructure, promoting water conservation practices, and implementing integrated water resources management to ensure long-term water security.

7. Affordable and Clean Energy

Malaysia is committed to increasing its share of renewable energy in the national energy mix. The country has implemented various initiatives to transition towards cleaner energy sources, including large-scale solar projects, biomass energy production, and small hydropower plants. Efforts are also being made to improve energy efficiency across sectors and promote the adoption of green technologies.

8. Decent Work and Economic Growth

Malaysia aims to achieve sustainable economic growth while ensuring decent work for all. Efforts are being made to enhance productivity, promote innovation, and support small and medium enterprises (SMEs) as key drivers of economic growth. The country also focuses on developing a skilled workforce, improving labour market conditions, and promoting inclusive growth to create quality job opportunities for all segments of society.

9. Industry, Innovation and Infrastructure

Malaysia is investing in infrastructure development and promoting innovation to drive economic growth. The country focuses on digital transformation, enhancing research and development capabilities, and developing sustainable industrial practices. Initiatives include the development of smart cities, upgrading transportation networks, and promoting Industry 4.0 technologies to enhance competitiveness and sustainability in the industrial sector.

10. Reduced Inequalities

Addressing income inequality and regional disparities remains a priority for Malaysia. The government is implementing policies to promote inclusive growth, improve social mobility, and reduce inequalities between different segments of society. This includes targeted interventions for marginalized groups, enhancing access to education and healthcare in underserved areas, and promoting equitable economic development across all country regions.

11. Sustainable Cities and Communities

With rapid urbanization, Malaysia is focusing on developing sustainable cities. Initiatives include improving public transportation, promoting green buildings, and enhancing urban planning to create more livable and sustainable urban environments. The country also implements smart city solutions, enhances waste management systems, and promotes community engagement to create inclusive and resilient urban communities.

12. Responsible Consumption and Production

Malaysia is working to promote sustainable consumption and production patterns. Efforts include implementing waste reduction and recycling programs, promoting sustainable tourism, and encouraging businesses to adopt sustainable practices. The government is also introducing policies to encourage circular economy practices, reduce single-use plastics, and promote eco-labelling to empower consumers to make sustainable choices.

13. Climate Action

Malaysia has committed to reducing its greenhouse gas emissions intensity by 45% by 2030. The country is implementing various measures, including increasing forest cover, promoting renewable energy, and enhancing energy efficiency across sectors. Climate change adaptation strategies are also being developed to improve resilience to climate impacts, particularly in vulnerable sectors such as agriculture and coastal areas.

14. Life Below Water

As a maritime nation, Malaysia is focusing on protecting its marine ecosystems. Efforts include establishing marine protected areas, combating illegal fishing, and reducing marine pollution, mainly plastic waste. The country is also promoting sustainable fisheries management, enhancing coastal zone management, and investing in research to understand better and protect its marine biodiversity.

15. Life on Land

Malaysia, known for its rich biodiversity, is working to protect its forests and wildlife. Conservation efforts include expanding protected areas, combating illegal wildlife trade, and promoting sustainable forest management practices. The country is also focusing on reforestation initiatives, enhancing biodiversity monitoring systems, and promoting eco-tourism as a means of sustainable economic development.

16. Peace, Justice and Strong Institutions

Malaysia is committed to strengthening its institutions and promoting good governance. Efforts are being made to enhance transparency, combat corruption, and ensure access to justice for all citizens. The country also focuses on improving public service delivery, strengthening the rule of law, and promoting inclusive decision-making processes to build trust in institutions and foster social cohesion.

17. Partnerships for the Goals

Malaysia actively participates in global partnerships and South-South cooperation to achieve sustainable development goals. The country is working to enhance international collaboration, attract sustainable investments, and share best practices in sustainable development. Malaysia also engages in regional initiatives and multi-stakeholder partnerships to address transboundary issues and leverage collective resources for sustainable development.

Are sustainable companies and SDG businesses the Same?

Sustainable companies and SDG businesses share many common goals, but they differ. Sustainable companies balance their operations’ economic, environmental, and social aspects to ensure long-term viability.

SDG businesses specifically align their strategies and operations with the United Nations’ 17 Sustainable Development Goals. While all SDG businesses are inherently sustainable, not all sustainable companies explicitly target the SDGs in their operations. Significant overlap exists, as many sustainable companies find that their practices naturally align with several SDGs.

What Are The Differences Between SDGs And ESGs?

SDGs (Sustainable Development Goals) and ESGs (Environmental, Social, and Governance) are related but distinct concepts in sustainability. SDGs are 17 global goals established by the United Nations to address various social, economic, and environmental challenges by 2030. They provide a framework for global cooperation and action.

ESGs, on the other hand, are criteria used to evaluate a company’s environmental, social, and governance performance. Investors often use ESG factors to assess a company’s sustainability and ethical impact. While SDGs provide a broader, global perspective on sustainable development, ESGs offer a more specific framework for evaluating individual company performance in sustainability-related areas.

What Companies Are Using The SDGs In Malaysia?

In Malaysia, several companies have integrated SDGs into their business strategies and operations. Petronas, the national oil and gas company, has aligned its sustainability efforts with the SDGs, mainly focusing on clean energy and climate action. Maybank, one of the country’s largest banks, has incorporated SDGs into its financial products and services, emphasizing financial inclusion and sustainable finance.

Sime Darby Plantation (SD Guthrie) has aligned its sustainable palm oil production practices with relevant SDGs. Companies like Tenaga Nasional Berhad (TNB) and CIMB Group have also mapped their sustainability initiatives to specific SDGs, demonstrating a growing trend among Malaysian corporations to contribute to these global goals.

What Companies Are Using The SDGs Outside Malaysia?

Many companies outside Malaysia have embraced the SDGs in their business strategies. Unilever, a multinational consumer goods company, has integrated the SDGs into its Sustainable Living Plan, focusing on health and wellbeing, environmental impact reduction, and enhancing livelihoods.

IKEA has aligned its sustainability strategy with the SDGs, emphasizing circular economy principles and sustainable sourcing. Microsoft has committed to being carbon-negative by 2030, which aligns with the climate action goal. Patagonia, the outdoor clothing company, has long been a leader in sustainable business practices, addressing multiple SDGs through its environmental and social initiatives. These companies demonstrate how businesses across various sectors can contribute to the SDGs while maintaining successful operations.

How Does SDG Affect A Business?

The SDGs can significantly impact a business in at least four ways.

1. SDGs provide a framework for companies to align their operations with global sustainability priorities, potentially opening new market opportunities and fostering innovation.
2. Adopting SDGs can enhance a company’s reputation, attracting environmentally and socially conscious consumers and investors.
3. SDGs help risk management by addressing resource scarcity and climate change.
4. Aligning with SDGs can improve employee engagement and attraction, as many workers, especially younger generations, prefer to work for companies with firm social and environmental commitments.

However, integrating SDGs into business operations may require significant investment and changes in business models, which can be challenging in the short term but potentially beneficial in the long run.