A New Era for ASEAN’s Sustainable Entrepreneurship

ASEAN officially launched the ASEAN Centre of Excellence for MSMEs in Green Transition, marking a pivotal step in strengthening the region’s commitment to sustainability, innovation, and inclusivity. The launch ceremony was led by Malaysia’s Minister of Foreign Affairs, Dato’ Seri Utama Haji Mohamad bin Haji Hasan, alongside key ASEAN officials and the European Union (EU), highlighting the partnership’s regional and international significance.

Micro, small, and medium enterprises (MSMEs) are the backbone of ASEAN economies, contributing over 97 percent of total enterprises and employing more than half of the region’s workforce. However, as global markets shift toward low-carbon models, MSMEs must adapt quickly to remain competitive. The newly launched Centre aims to accelerate this green transition by equipping businesses with the tools, knowledge, and networks to innovate sustainably.

Supported by the EU’s Technical Assistance Facility to the Green Team Europe Initiative (TAF-GTEI), the ASEAN Centre of Excellence for MSMEs in Green Transition serves as a regional hub for capacity building, training, and knowledge exchange. It will help MSMEs transition toward eco-friendly operations while enhancing their participation in global value chains aligned with the ASEAN Economic Community (AEC) Strategic Plan 2030.

Strengthening ASEAN’s Green Transition through MSME Empowerment

The establishment of this Centre of Excellence aligns closely with the ASEAN Strategic Action Plan for MSME Development 2026–2030, which emphasizes innovation, sustainability, and competitiveness. According to Wittawat Lamsam, Chair of the ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME), the Centre symbolizes ASEAN’s collective move from planning to tangible action.

“This Centre of Excellence marks an important milestone in our collective journey toward a sustainable, competitive, and resilient ASEAN,” Lamsam said. “Through this Centre, MSMEs across ASEAN will be empowered with the knowledge, best practices, and networks they need to innovate, adopt greener business models, and thrive in the global marketplace.”

The Centre will not only train MSMEs on sustainable production and environmental management but also introduce green financing schemes, carbon literacy programs, and access to renewable energy solutions. These efforts are designed to help MSMEs reduce emissions, optimize resource use, and attract impact-driven investors.

Dato’ Sri Ramanan Ramakrishnan, Malaysia’s Deputy Minister of Entrepreneur and Cooperatives Development, emphasized that Malaysia is proud to lead this initiative under its 2025 ASEAN Chairmanship. He stated that the Centre will reinforce ASEAN’s entrepreneurship ecosystem and contribute to a regional platform for sharing best practices, promoting green innovation, and fostering inclusive economic growth.

EU’s Support and ASEAN’s Global Partnerships

The European Union has emerged as a key partner in ASEAN’s sustainable economic transformation. Sujiro Seam, EU Ambassador to ASEAN, praised Malaysia’s leadership and reaffirmed the EU’s long-term commitment to the Centre’s success. He highlighted that the EU will finance the first year of training and development activities at the Centre, underlining its dedication to empowering MSMEs as key drivers of a green and resilient ASEAN.

This collaboration reflects the EU’s Global Gateway Strategy, which seeks to build sustainable and inclusive partnerships worldwide. By supporting ASEAN’s green transition, the EU is not only contributing to the region’s economic resilience but also reinforcing global cooperation for climate neutrality.

The ASEAN Centre of Excellence for MSMEs in Green Transition will thus serve as a bridge between regional policymakers, private sector stakeholders, and international development partners. It will facilitate dialogue on green innovation, strengthen regional cooperation, and connect ASEAN MSMEs to international markets seeking sustainable supply chain partners.

Operational Roadmap and Future Prospects

Following its launch, the Centre’s operationalization will proceed in multiple phases. The initial phase involves finalizing a comprehensive landscape study and the Centre’s terms of reference, which will be endorsed by ACCMSME. Subsequently, a three-day pilot training program will be hosted by the Centre, aimed at preparing ASEAN MSMEs for real-world green challenges and opportunities.

This roadmap is expected to lay the foundation for a robust regional framework that supports MSMEs in accessing green technology, financing, and innovation networks. The Centre’s programs will also focus on developing industry-specific guidelines to help businesses align with ASEAN’s low-carbon targets and the global Sustainable Development Goals (SDGs).

The CoE’s establishment is timely as ASEAN economies collectively move toward a carbon-neutral future. The region faces mounting pressure from climate-related disruptions, and MSMEs play a crucial role in advancing environmental and economic resilience. Through this initiative, ASEAN aims to position itself as a global leader in sustainable entrepreneurship, where MSMEs act as the vanguard of green innovation.

Driving a Greener, More Inclusive ASEAN Economy

The ASEAN Centre of Excellence for MSMEs in Green Transition represents a collective acknowledgment that sustainability and economic growth must go hand in hand. As ASEAN prepares for the next phase of its economic integration, empowering MSMEs through green transition support will be key to ensuring competitiveness and inclusivity.

This initiative also reflects a broader regional vision under the ASEAN Economic Community Strategic Plan 2030: creating a resilient, innovative, and future-ready ASEAN economy. By institutionalizing green practices within MSMEs, the Centre paves the way for a stronger, more cohesive regional approach to tackling environmental and economic challenges.

The partnership between ASEAN, Malaysia, and the EU showcases the power of international cooperation in addressing shared challenges. With the Centre serving as both a training hub and a platform for innovation, it will play a transformative role in shaping the region’s sustainability agenda for years to come.

As ASEAN continues its journey toward carbon neutrality, the Centre stands as a symbol of hope for the region’s MSMEs — proving that small enterprises can make a big impact in building a greener, more inclusive future for all.