Climate-focused MSMEs are essential to driving Malaysia's low-carbon and climate-resilient transition, yet many continue to face barriers in accessing the financing needed to scale their solutions. Developed by UNDP Malaysia, Singapore and Brunei Darussalam with support from the UNDP Climate Finance Network and funding from the UK Foreign, Commonwealth and Development Office, this report examines the structural barriers preventing climate-focused MSMEs from scaling in Malaysia. Based on a survey of 100 climate-focused MSMEs, it highlights the persistent "Missing Middle" that limits business growth despite the availability of sustainable finance. The report also identifies key challenges faced by both enterprises and investors, and explores how blended finance and other innovative financing mechanisms can help bridge financing gaps and unlock greater private investment for sustainable development.

To read a web-based synthesis of the report, click here: MyClimate Insights