The document discusses green technology and business initiatives in Malaysia. It outlines three main initiatives introduced by the Malaysian government: green buildings, renewable energy, and energy efficiency. The government provides incentives for businesses adopting these green technologies. However, small and medium businesses often find it difficult to utilize the initiatives due to high costs. The document suggests various ways to encourage more widespread adoption of green practices, including providing more affordable options and increasing environmental education.

1. “GREEN TECHNOLOGY TO GREEN BUSINESS
BUILD THE GREEN MALAYSIAN ECONOMIC
SYSTEM”
ENTREPRENEURSHIP
(ENT530)

2. 1.0 Summary
Malaysia as one of the growth economy has enjoyed remarkable improvement in the
agriculture and tourism in the success story. But today, Malaysia faces a problem with the
environment unsustainability, pollutions and deforestation. On 20th March 2012, the aired issues
in News Strait Time relating to green business is being notice by the entrepreneur. Malaysian
business made an attempt to go green by using green technology. Government also encourage
the Malaysian business by provide them with initiatives to using green technology but it is
impossible especially to small and medium ones due to large investment need to be invest.
Example of available initiatives introduced by the government is green building, renewable
energy and energy efficiency.
Malaysia has introduced its own green rating system, the green building index (GBI).
Green building is design to save energy, resources of the building and the implication to the
human health and environment. Currently, there are established green building in Malaysia such
as Malaysia Energy Centre, BangunanSuruhanjayaTenaga, Kettha Leo Building, Krc Sales
Gallery, 1 First Avenue and so forth.
Next initiatives are renewable energy. There are various type of energy that can be
renews such as biomass, biogas, hydropower and solar power. This energy can be generated for
the business consumption especially to the industrial sector who consumes a lot of energy. The
rising of greenhouse has driven the nation to the agenda of renewable energy.
Last initiatives introduced by the government are energy efficiency. The company who
involve with advisory, consultation and project management are eligible to get the government
incentives. The services that these companies provide are energy audits, energy management
services, procurement of energy efficient equipment and construction supervisor.
The government initiatives and program are to encourage the business to go green by
applying the right green strategy according to their sector. The companies and business who
adopt with the green technologies will enjoyed taxes exemption provided by the government.
The desire to create sustainable business, environment and economy has be a major concern for
the world. It is to ensure that there is no negative impact on the earth ad human being.

3. Sustainability development of the business will enhance the value of customer, investor
and the environment. At the same time will meet the customer need and treating the
environment well. The issues of green business have been the major concern for developing
country to adopt it and to ensure their safety towards the young generation of the future business.
2.0 Issues
Nowadays, there is no doubt to the extent of ‘green technology or business’ being big
issues in the entrepreneurship. This is continuously used to maintain the environment and
economic sustainability. Many initiatives and program organized to cope with the environment
problem especially to the business. The attempting made is for the sake of the future generation
who will deal with bigger issues rather than this. This is a way to lessen it from being a serious
and negative impact to the surrounding.
Three initiatives have been implemented in Malaysia to improve the greenest in the
business. The initiatives are green building, renewable energy and energy efficient. Some
organization can easily adapt with the procurement of go green but some may not. This is due to
the limitation of the resources and capital. For small and medium businesses, they unable to fully
utilize the available initiatives gave. Although they willing to apply it but due to some limitation
they unable to adopt it. The organization that incorporated the green technology into their
business will require high capital, since the technology used is very rare and cannot be imitate.
The integration of green technology may not be cost-effective. It is very expensive especially in
the renewable energy.
Green building has been promoted by the Standard and Industrial Researches Institute of
Malaysia also known as SIRIM. Green building founded in 2009 and developed by
PertubuhanArkitek Malaysia (PAM) and the Association of Consulting Engineers Malaysia
(ACEM). Green Building Indicator is introduced to lead the property industry to be
environmental – friendly. The development of GBI has been fully supported from Malaysian’s
building and property industry. The purpose of the green building is to increase the awareness of
environmental sustainability among the developers, architects, engineers, planners, designers,
contractors and the public. Green Building Indicator or GBI has been the only tools for the
tropical zones other than Singapore Government’s Greenmark. GBI measure the parameter

4. within the tropical Malaysia climate. The customization focuses more toward the energy and
water resources.
The company who has their own green building will enjoyed certain tax incentives. The
green building who have been certified will able to claim the incentives given. The owner will
get a tax exemption for 100 per cent of the additional amount of money incurred to obtain the
certificate of the GBI. For each year, the exemption can be set-off against 100 per cent of the
income. Besides that, the buyers if GBI-certified purchased from property developers are entitled
for stamp duty exemption on instruments of transfer of the ownership of the properties. It is
based on the extra cost incurred to obtain the GBI certificate. According to the government
strategy these incentives will be effective until 31 December 1, 2014. The eligible organization
can apply to the incentives to enjoy the tax and stamp duty exemption.
Malaysia has good resources of the renewable energy. Based on the article found on
internet, Malaysia has been fast growing industrial and commercial sector, as well as its services
industry to meet the need of the population and contributing to economic growth. According to
the minister of energy, green technology and water, he mentioned that renewable energy in
Malaysia very bright as it rich available resource that can be readily used such as solar, biogas,
biomass and hydro. The development of the renewable energy and sustainable energy
development may need government intervention since it is a fear for the newcomers to
implement it without the necessary guidance from the authority.
The fast developing nation drives the need for renewable energy. Under the renewable
energy act, the organization who interesting in develop renewable energy must be in safe and
secure manner. The generated electricity and water can be sold to the companies that serve the
utility in the period of the time. Recently, according to the Datuk Seri Peter Chin FahKui there
are already 30 MW of electricity generated from the renewable energy sources which is solar,
biogas, biomass and hydro.
The government of Malaysia aim to achieve 5.5 per cent of renewable energy in Malaysia
total energy until 2015. However, in order to achieve the target, there was a need to change the
lifestyle of Malaysian citizen and use less energy. The Malaysian habit that always is wasting
energy need to be change starting from now. The organization need to find out another source of

5. energy that can be used. It is to ensure that the consumption of energy can be reduced and save
the energy for the future consumption.
Energy efficiency is the process of producing more output with less energy units. Many
organizations either government sector and non-government organization (NGO) has made an
effort for the benefit of the people and country. In energy efficiency initiatives, it is also
available with the certain incentives. The organization with the pioneer status with income taz
exemptions on 100 per cent of statutory income for 10 years and investment tax allowance on
qualifying capital expenditure incurred to be set off against 100 per cent of statutory income for
5 years. For instances, the company with the relevant business and operation may also claim
import duty and sales tax exemptions for purchasing the equipment from local manufacturers,
import duty and sales tax exemption for electrical and electronic equipment, and sales tax
exemptions for the purchase of locally manufactured electrical and electronic consumer goods.
The goal and objective of energy efficiency (EE) is to reduce the consumption of energy
and use it in effective and efficient ways. If the comparison is made between the EE and GBI, EE
is the low clean energy revolution that measures the using of the fuel vehicle, low energy
lighting and equipment improvement. Besides that, energy efficiency is a key to the carbon
reduction tool to gain competitive advantage. Due to higher gross domestic product growth, the
energy demand in Malaysia is increasing for every each year.
The existence of technology based saving ensure the less energy used. For example the
kitchen equipment has been introduced that using green technology. With the higher spending
power and improvement in the quality of life, there will be increasing in energy consumption.
The advance technology such as like the smartphone application and the non-vehicle gas for the
vehicle has reduced the air pollution in Malaysia. The businesses that came out with the latest
green technology tend to capture the market demand, this is because the raising awareness of the
sustainability of the business and environment. If there is higher energy used then it will give
negative impact to the earth such as global warming and climate changes. The changes of the
climate and global warming have resulted to a re-evaluation of energy use in the economic
sectors. Hence, the energy efficiency effort has come in to reduce the energy consumption
especially in Malaysia.

6. If the entrepreneur integrates the energy efficiency they can create the opportunities for
business advantage. The ability to reduce the energy can basically change the related expenditure
for the businesses. The existence of Malaysian company who want to embracing the concept of
energy efficiency and acknowledging some benefit associated with it, they are still investigate on
how to effectively implement the enterprise – wide energy saving measurement.
3.0 Suggestion
Industrialization and modernization is spreading everywhere including Malaysia. As they
spread the gross domestic product increase and reduce poverty, there is also increasing in the
fossil fuels, natural resources and loss of biodiversity. The entrepreneur should aware about the
current issues relating to the environment. They should take the opportunity and act as the
pioneer in the market. This is because, the green technology business only limited to the small
and medium enterprise.
Emerging changes of the technology contribute to more profitable business. As more
consumer nowadays has already adapt with the smart application and they can afford to buy it.
No wonder all of the young generation nowadays is very open-minded and have an interest to
involve with the entrepreneurship or business. Since the business will be very profitable to them
if they were very persist and have high self-efficacy to do it. The government should increase the
programs and incentives givento attract the young generation especially generation X and Y to
actively doing business.
Besides that, others than three initiative introduce to sustain the environment, the
government also can re-adjust the initiatives to the small and medium enterprise. The adjustment
can be made in the cost-effective ways and to ensure they have the ability to implement it in their
daily operation. Although the cost of using the green technology high, the government should
make it balance to the both parties either small or large organization. This is to encourage all
participation from all organization. Other than that, instead of introduce to cost-effective to the
small business the government can find others strategy or develop other plan to ensure that the
small and medium enterprise also treating the environment well. The government should adopt
the plan with low capital and high capacity. Instead of focusing only to the high capital, the plan
sometime can be very effective to encourage them.

7. In order to encourage the entrepreneur use green technology in their business, the culture
of renewable energy and energy efficiency must be foster among Malaysian. The blueprint of the
smart EE and RE need to be plan carefully. The good blueprint for the EE and RE must be
effective in the terms of the funding and cost effective. There blueprint must consist of
contingency plan, the back-up plan can be used whenever something unexpected happen. There
is no impossibility that something may be pop-up unconditionally at the last minutes.
Other solution that can be used to attract the entrepreneur to do green business is through
increasing the number of green education. For example by creating a module that teaches the
student to aware about the products and service they used. For example the uses of plastic bag,
since it is take a long time to dissolve it will be harm to the environment. The awareness of the
environment can be used by buying a product that made by the organic sources, can be recycle
and not cause much damage to the earth. The supply or the producer of the goods and services
need to consider about the sources of the goods, the goods should be made ethically and
ecologically while not only considering about the profit only.
Green also can be in the term of recycle re-use waste produce. The product can be eco-
friendly, sustainable clothing and biodegradable. In Malaysia the uses of the environmentally
product has been developed by the small retailer and business to reduce the pollution. Besides
that, organic cotton, hemp and linen as well as recycled wool, plastic and polyester has been
worked by the organization in Malaysian to bring indigeneous and cultural clothing and
accessory making techniques to mainstream shoppers. The customer then needs to embrace the
green fashion options.
Green technology lead to a green business as a result it will create a green economy and
finally Malaysia will be green. The entrepreneur then becomes the ecopreneurs. Green business
is a game in the sense that the SMEs and entrepreneur want to compete in the green economy. It
is a new economic system where the main point is to balancing the sustainability and at the same
time maintaining a profitable business.

8. 4.0 Reference
News strait time. Retrieved on 1st December, 2012 from
http://www.nst.com.my/nation/extras/green-technology-green-business-for-a-green-economy-
1.155105
News strait time. Retrieved on 1st December, 2012 from
http://www.nst.com.my/nation/extras/green-technology-enticements-to-go-green-1.63407
Pola Singh. (2012) ‘Boosting Energy Effeciency’ Retrieved on 1st December, 2012 from
http://biz.thestar.com.my/news/story.asp?file=/2012/7/13/business/11629630&sec=business
Saiful. (2011) ‘Malaysia Has Rich Resources for Renewable Energy’ Retrieved on 1st December,
2012 from http://algaetech.com.my/v1/2011/11/14/malaysia-has-rich-resources-for-renewable-
energy/
TenagaNasionalBerhad. Retrieved on 1st December, 2012 from
http://www.tnb.com.my/residential/discounts-rebates-and-offers/save-rebate-program.html
Wikipedia. ‘Green building in Malaysia’ Retrieved on 1st December, 2012
fromhttp://en.wikipedia.org/wiki/Green_building_in_Malaysia
Wikipedia. ‘Energy policy in Malaysia’ Retrieved on 1st December, 2012 from
http://en.wikipedia.org/wiki/Energy_policy_of_Malaysia
Wikipedia. ‘Sustainable Business’ Retrieved on 1st December, 2012 from
http://en.wikipedia.org/wiki/Sustainable_business