Government green procurement in Malaysia : benefits, challenges, and impact of Covid-19 on small and medium enterprises (SMES) government suppliers

Abstract

Climate change and environmental depletion are issues of grave concern that affect all living beings on earth, especially humans. People are more vulnerable to diseases due to these environmental problems which have led to a decrease in the average lifespan of humans. These adverse effects are primarily caused by human activities, which harm the people and the planet. In response, the government of Malaysia has taken action by prioritizing sustainability, including in procurement activities, to help save the planet. This procurement plays a vital role in promoting the government’s message to the public and transitioning to government green procurement (GGP), which demonstrates the government’s commitment to protecting the environment. The GGP is being implemented throughout the country in phases and involves local suppliers who provide green products or services that comply with the government’s policies and standards. However, little is known about the benefits and challenges that Small and Medium Enterprises (SMEs) as suppliers face when participating in GGP, or when they participated in it, especially during the COVID-19 pandemic. This study therefore aims to; (i) examine the benefits to SMEs suppliers when participating in GGP; (ii) examine the challenges faced by SMEs suppliers when participating in GGP; and (iii) investigate the impact of the COVID-19 on SMEs suppliers who are participated in GGP during the pandemic. The study used a quantitative research method via a questionnaire survey among MyHIJAU mark holders in Malaysia, with 126 Malaysian respondents. MyHIJAU, the national green recognition, is a programme initiated by Malaysian Green Technology and Climate Change Corporation (MGTC) to boost the usage of green products and services throughout the country. An online platform, the MyHIJAU directory website, has been developed to ease the seller and the buyer with particular information on the products or services and also the company details. The analysis was conducted using both Statistical Package for Social Sciences (SPSS) and t-test analysis to conduct the descriptive analysis and to identify differences among SMEs. The findings indicate that SMEs are motivated to participate in GGP because they believe that their action can help alleviate environmental problems. Additionally, there is no difference between the benefits that both small and medium enterprises receive from taking part in GGP. However, medium enterprises face more challenges than small enterprises, especially in organization-related challenges. Finally, the COVID-19 pandemic has had a greater impact on small enterprises than on medium enterprises. This study provides valuable insights into SMEs’ perceptions of their participation in GGP as well as during the COVID-19 pandemic.