This country report explores the evolving landscape of social procurement in Malaysia, focusing on how impact-driven businesses, including social enterprises, engage with corporate clients and the challenges they face in supplying their products and services. Social procurement, which leverages purchasing power to generate both social and environmental benefits alongside economic value, has gained increasing attention globally in recent years. Recognizing the need for greater market understanding, the Malaysia Impact Alliance (MYImpact) and Yunus Social Business (YSB) initiated this project to provide visibility for impact-driven businesses seeking corporate buyers and to analyze their needs in supplying to corporations.

The key findings of this study highlight that most impact-driven businesses in Malaysia operate on a small scale, facing significant barriers in accessing financing and meeting the operational standards required by corporate buyers. Limited resources, capacity constraints, and lack of long-term visibility and commitment from corporate clients often hinder their ability to secure sustainable corporate partnerships. Finally, the report suggests recommendations to enhance social procurement in Malaysia. These include conducting market research and matchmaking events to connect impact-driven businesses with corporate buyers, facilitating stronger B2B partnerships, a capacity-building program to support impact-driven businesses in enhancing their B2B sales capabilities by providing expert insights and peer advice on positioning themselves as preferred suppliers and engaging effectively with corporate clients.