Transforming for Sustainability: Driving Impact and Value through Supply Chain Action
Overview
The Centre for Impact Investing and Practices (“CIIP”), a non-profit entity established by Temasek Trust, embarked on this report to study the role of Southeast Asian MSMEs in global supply chains.
Throughout the course of this study, CIIP engaged and sought the views of Khazanah Nasional Berhad as we have a shared interest in understanding the challenges faced by MSMEs in a world where sustainability considerations have become increasingly important. Yet, they are not getting any easier to navigate, especially for resource-stretched MSMEs.
This report is the second of a comprehensive two-part study, building on the foundational report prepared by CIIP and PwC Singapore, “It takes a community”: Enabling SME resilience in FMCG supply chains published in April 2024. The first report focused on how SMEs in the fast-moving consumer goods (FMCG) sector from Indonesia, Malaysia, and Singapore were addressing sustainability-related challenges.
This second report expands the scope by covering additional sectors namely consumer goods, food and beverage, electrical and electronics, and tourism, and extending the geographic reach to include Vietnam. Its objectives include to:
Provide an overview across industry value chains and the critical role of MSMEs in SEA, including the current state of play, challenges faced, and potential opportunities particularly from sustainability trends
Draw on qualitative and quantitative assessments, align on challenges and benefits of transforming supply chains towards ESG and impact, in the context of today’s macro conditions
Highlight how industry stakeholders (corporates, financiers) can support MSMEs suppliers on their sustainability journey (e.g., supply chain innovation, financing)
Share industry best practices on how to track and ensure impact accountability across the supply chain, including a proposing a possible standard core metrics set
Illustrate how cutting-edge innovations can be leveraged to facilitate and scale this transformation
Published in May 2025, this study covers MSMEs from Indonesia, Malaysia, Singapore, and Vietnam. It includes perspectives from interviews with MNCs, industry associations, solution providers, and other key stakeholders, in addition to an MSME survey of over 3,500 MSMEs in the region.
Sustainable Supply Chains: Building Resilience in a Time of Disruption
This report presents findings from surveys of 3,512 MSMEs conducted between April to July 2024, complemented by qualitative insights from 22 roundtable discussions with 86 MSMEs across Indonesia, Malaysia, Singapore, and Vietnam. Additionally, interviews were conducted with 86 MNCs, solution providers, and enablers between September 2023 and March 2025.
With this deeper understanding of the challenges faced by MSMEs, this study identifies key challenges and opportunities in supporting MSMEs on their sustainability journeys, with recommendations across ecosystem actors. This report has the aim of strengthening business and supply chain resilience amidst changes in the global regulatory and trade environment.
This study offers clear indications of the promising investment opportunities and most successful business models and practices to accelerate positive impact for underserved customers through access to credit. Southeast Asia continues to be well-positioned to make strides in supply chain sustainability. Together, we can take action to ensure that these MSMEs are equipped to succeed in the evolving supply chain landscape.
Download the report here.