“GREEN TECHNOLOGY TO GREEN BUSINESSBUILD THE GREEN MALAYSIAN ECONOMIC SYSTEM” ENTREPRENEURSHIP (ENT530)
1.0 Summary Malaysia as one of the growth economy has enjoyed remarkable improvement in theagriculture and tourism in the success story. But today, Malaysia faces a problem with theenvironment unsustainability, pollutions and deforestation. On 20th March 2012, the aired issuesin News Strait Time relating to green business is being notice by the entrepreneur. Malaysianbusiness made an attempt to go green by using green technology. Government also encouragethe Malaysian business by provide them with initiatives to using green technology but it isimpossible 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, renewableenergy 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 thehuman health and environment. Currently, there are established green building in Malaysia suchas Malaysia Energy Centre, BangunanSuruhanjayaTenaga, Kettha Leo Building, Krc SalesGallery, 1 First Avenue and so forth. Next initiatives are renewable energy. There are various type of energy that can berenews such as biomass, biogas, hydropower and solar power. This energy can be generated forthe business consumption especially to the industrial sector who consumes a lot of energy. Therising of greenhouse has driven the nation to the agenda of renewable energy. Last initiatives introduced by the government are energy efficiency. The company whoinvolve with advisory, consultation and project management are eligible to get the governmentincentives. The services that these companies provide are energy audits, energy managementservices, procurement of energy efficient equipment and construction supervisor. The government initiatives and program are to encourage the business to go green byapplying the right green strategy according to their sector. The companies and business whoadopt 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 forthe world. It is to ensure that there is no negative impact on the earth ad human being.
Sustainability development of the business will enhance the value of customer, investorand the environment. At the same time will meet the customer need and treating theenvironment well. The issues of green business have been the major concern for developingcountry 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 bigissues in the entrepreneurship. This is continuously used to maintain the environment andeconomic sustainability. Many initiatives and program organized to cope with the environmentproblem especially to the business. The attempting made is for the sake of the future generationwho will deal with bigger issues rather than this. This is a way to lessen it from being a seriousand negative impact to the surrounding. Three initiatives have been implemented in Malaysia to improve the greenest in thebusiness. The initiatives are green building, renewable energy and energy efficient. Someorganization can easily adapt with the procurement of go green but some may not. This is due tothe limitation of the resources and capital. For small and medium businesses, they unable to fullyutilize the available initiatives gave. Although they willing to apply it but due to some limitationthey unable to adopt it. The organization that incorporated the green technology into theirbusiness 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 inthe renewable energy. Green building has been promoted by the Standard and Industrial Researches Institute ofMalaysia also known as SIRIM. Green building founded in 2009 and developed byPertubuhanArkitek Malaysia (PAM) and the Association of Consulting Engineers Malaysia(ACEM). Green Building Indicator is introduced to lead the property industry to beenvironmental – friendly. The development of GBI has been fully supported from Malaysian’sbuilding and property industry. The purpose of the green building is to increase the awareness ofenvironmental sustainability among the developers, architects, engineers, planners, designers,contractors and the public. Green Building Indicator or GBI has been the only tools for thetropical zones other than Singapore Government’s Greenmark. GBI measure the parameter
within the tropical Malaysia climate. The customization focuses more toward the energy andwater resources. The company who has their own green building will enjoyed certain tax incentives. Thegreen building who have been certified will able to claim the incentives given. The owner willget a tax exemption for 100 per cent of the additional amount of money incurred to obtain thecertificate of the GBI. For each year, the exemption can be set-off against 100 per cent of theincome. Besides that, the buyers if GBI-certified purchased from property developers are entitledfor stamp duty exemption on instruments of transfer of the ownership of the properties. It isbased on the extra cost incurred to obtain the GBI certificate. According to the governmentstrategy these incentives will be effective until 31 December 1, 2014. The eligible organizationcan 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 oninternet, Malaysia has been fast growing industrial and commercial sector, as well as its servicesindustry to meet the need of the population and contributing to economic growth. According tothe minister of energy, green technology and water, he mentioned that renewable energy inMalaysia 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 energydevelopment may need government intervention since it is a fear for the newcomers toimplement it without the necessary guidance from the authority. The fast developing nation drives the need for renewable energy. Under the renewableenergy act, the organization who interesting in develop renewable energy must be in safe andsecure manner. The generated electricity and water can be sold to the companies that serve theutility in the period of the time. Recently, according to the Datuk Seri Peter Chin FahKui thereare 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 Malaysiatotal energy until 2015. However, in order to achieve the target, there was a need to change thelifestyle of Malaysian citizen and use less energy. The Malaysian habit that always is wastingenergy need to be change starting from now. The organization need to find out another source of
energy that can be used. It is to ensure that the consumption of energy can be reduced and savethe energy for the future consumption. Energy efficiency is the process of producing more output with less energy units. Manyorganizations either government sector and non-government organization (NGO) has made aneffort for the benefit of the people and country. In energy efficiency initiatives, it is alsoavailable with the certain incentives. The organization with the pioneer status with income tazexemptions on 100 per cent of statutory income for 10 years and investment tax allowance onqualifying capital expenditure incurred to be set off against 100 per cent of statutory income for5 years. For instances, the company with the relevant business and operation may also claimimport 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 taxexemptions 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 energyand use it in effective and efficient ways. If the comparison is made between the EE and GBI, EEis the low clean energy revolution that measures the using of the fuel vehicle, low energylighting and equipment improvement. Besides that, energy efficiency is a key to the carbonreduction tool to gain competitive advantage. Due to higher gross domestic product growth, theenergy demand in Malaysia is increasing for every each year. The existence of technology based saving ensure the less energy used. For example thekitchen equipment has been introduced that using green technology. With the higher spendingpower 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 thevehicle has reduced the air pollution in Malaysia. The businesses that came out with the latestgreen technology tend to capture the market demand, this is because the raising awareness of thesustainability of the business and environment. If there is higher energy used then it will givenegative impact to the earth such as global warming and climate changes. The changes of theclimate and global warming have resulted to a re-evaluation of energy use in the economicsectors. Hence, the energy efficiency effort has come in to reduce the energy consumptionespecially in Malaysia.
If the entrepreneur integrates the energy efficiency they can create the opportunities forbusiness advantage. The ability to reduce the energy can basically change the related expenditurefor the businesses. The existence of Malaysian company who want to embracing the concept ofenergy efficiency and acknowledging some benefit associated with it, they are still investigate onhow to effectively implement the enterprise – wide energy saving measurement.3.0 Suggestion Industrialization and modernization is spreading everywhere including Malaysia. As theyspread the gross domestic product increase and reduce poverty, there is also increasing in thefossil fuels, natural resources and loss of biodiversity. The entrepreneur should aware about thecurrent issues relating to the environment. They should take the opportunity and act as thepioneer in the market. This is because, the green technology business only limited to the smalland medium enterprise. Emerging changes of the technology contribute to more profitable business. As moreconsumer 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 toinvolve with the entrepreneurship or business. Since the business will be very profitable to themif they were very persist and have high self-efficacy to do it. The government should increase theprograms and incentives givento attract the young generation especially generation X and Y toactively doing business. Besides that, others than three initiative introduce to sustain the environment, thegovernment also can re-adjust the initiatives to the small and medium enterprise. The adjustmentcan be made in the cost-effective ways and to ensure they have the ability to implement it in theirdaily operation. Although the cost of using the green technology high, the government shouldmake it balance to the both parties either small or large organization. This is to encourage allparticipation from all organization. Other than that, instead of introduce to cost-effective to thesmall business the government can find others strategy or develop other plan to ensure that thesmall and medium enterprise also treating the environment well. The government should adoptthe plan with low capital and high capacity. Instead of focusing only to the high capital, the plansometime can be very effective to encourage them.
In order to encourage the entrepreneur use green technology in their business, the cultureof renewable energy and energy efficiency must be foster among Malaysian. The blueprint of thesmart EE and RE need to be plan carefully. The good blueprint for the EE and RE must beeffective in the terms of the funding and cost effective. There blueprint must consist ofcontingency plan, the back-up plan can be used whenever something unexpected happen. Thereis 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 throughincreasing the number of green education. For example by creating a module that teaches thestudent 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 theenvironment can be used by buying a product that made by the organic sources, can be recycleand not cause much damage to the earth. The supply or the producer of the goods and servicesneed to consider about the sources of the goods, the goods should be made ethically andecologically 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 environmentallyproduct has been developed by the small retailer and business to reduce the pollution. Besidesthat, organic cotton, hemp and linen as well as recycled wool, plastic and polyester has beenworked by the organization in Malaysian to bring indigeneous and cultural clothing andaccessory making techniques to mainstream shoppers. The customer then needs to embrace thegreen fashion options. Green technology lead to a green business as a result it will create a green economy andfinally Malaysia will be green. The entrepreneur then becomes the ecopreneurs. Green businessis a game in the sense that the SMEs and entrepreneur want to compete in the green economy. Itis a new economic system where the main point is to balancing the sustainability and at the sametime maintaining a profitable business.
4.0 ReferenceNews strait time. Retrieved on 1st December, 2012 fromhttp://www.nst.com.my/nation/extras/green-technology-green-business-for-a-green-economy-1.155105News strait time. Retrieved on 1st December, 2012 fromhttp://www.nst.com.my/nation/extras/green-technology-enticements-to-go-green-1.63407Pola Singh. (2012) ‘Boosting Energy Effeciency’ Retrieved on 1st December, 2012 fromhttp://biz.thestar.com.my/news/story.asp?file=/2012/7/13/business/11629630&sec=businessSaiful. (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 fromhttp://www.tnb.com.my/residential/discounts-rebates-and-offers/save-rebate-program.htmlWikipedia. ‘Green building in Malaysia’ Retrieved on 1st December, 2012fromhttp://en.wikipedia.org/wiki/Green_building_in_MalaysiaWikipedia. ‘Energy policy in Malaysia’ Retrieved on 1st December, 2012 fromhttp://en.wikipedia.org/wiki/Energy_policy_of_MalaysiaWikipedia. ‘Sustainable Business’ Retrieved on 1st December, 2012 fromhttp://en.wikipedia.org/wiki/Sustainable_business