LAST year, a Malaysian rubber glove manufacturer had its shipment halted in the US for allegedly using forced labour in its factories.

And, major foreign retailers, such as Walmart, Kmart and Tesco, have started inspecting the plants of their Malaysian suppliers to ensure they follow labour, safety and environmental laws.

This is the norm now, said the Malaysia External Trade Development Corporation (Matrade), a government agency that oversees exports, as customers the world over are starting to demand environmentally sustainable and socially responsible goods.

With the country’s regional competitors like Singapore and Thailand jumping on the sustainability bandwagon, Matrade warns local firms not to be left behind.

“Sooner or later, you will be forced to go sustainable, especially with customers in developed markets, such as the US and the European Union, who want products that are sustainable,” Matrade CEO Wan Latiff Wan Musa told The Malaysian Insight.

“Even here in Malaysia, there are already customers who demand that their goods be produced sustainably. For instance, we don’t want to use plastic straws and bags,” he said after signing a memorandum of understanding with CIMB Holdings Group Bhd.

This year, Matrade is starting an initiative called Sustainability Action Values for Exporters (Save), which aims to help small and medium enterprises (SMEs) and big companies change their operations and practices to meet sustainability standards.

“We are seeing a strong shift towards sustainability among global businesses and industry policymakers, especially in high-value markets like the US and Europe,” said Wan Latiff.

“Malaysian exporters need to prepare themselves to be sustainability-ready, so that they can future-proof their global footprint. Failing to comply may result in their products or services being denied entry into certain markets.”

Sepang-based rubber glove maker WRP Asia was one of five companies whose imports were blocked by the US Customs and Border Protection for the suspected use of forced labour.

Last year, homegrown Malaysian exports grew to RM815.21 billion, making up 82.6% of total exports.

The Save initiative is a five-year campaign to help train and expose SMEs to the best sustainability practices. It will match exporters with trainers, auditors and funding sources.

They will also meet regulators and standard-setting bodies, including the Human Resources Ministry, Environment Department, Standard and Industrial Research Institute of Malaysia, and Standards Department.

Under the campaign, CIMB will help provide 12 training sessions, to begin next month, for SMEs registered with Matrade. About 400 firms are expected to benefit.

The initial phase of the campaign will focus on firms in the food and beverage, and electrical and electronics sectors, said Wan Latiff.

“CIMB is helping provide advisory services and funding to help our exporters change and become sustainable,” said CIMB Group CEO Tengku Zafrul Aziz during the MoU signing.

“We also want to help Malaysian SMEs tap into the US$7.87 trillion (RM32.4 trillion) global green economy.

“More importantly, (the initiative) will prepare them for a situation where non-compliance with economic, environmental and social issues could break a business.” – February 5, 2020.