The ASEAN Member States (AMS) acknowledge the importance of the circular economy (CE) as a key component of their sustainability agendas and economic development plans, aligning with the ASEAN Framework for Circular Economy for the ASEAN Economic Community (AEC). However, the adoption of CE practices varies widely among ASEAN countries; some AMS have established comprehensive strategies and clear targets, while others are still in the early stages of integrating CE principles into their development agendas.

AMS generally incorporate waste management, digitalisation, energy efficiency, resource efficiency and environmental, social and governance (ESG) factors into their CE strategies. Despite these initiatives, there is a clear need for more focused policies to support micro, small and medium enterprises (MSMEs) adopting CE practices across the region. While MSMEs have benefited from government-led capacity-building efforts, particularly in raising awareness, they require more technical support, including mentorship, consultancy, training on transition plans, legal assistance and certification of products and services to accelerate their transition to CE models.