Agensi Inovasi Malaysia (AIM) held a dialogue to gather feedback on how the Social Impact Exchange (SIX) can progress further with the formulation of a dedicated scorecard to help enhance the role of this unique exchange for the rakyat.
The one-day stakeholder engagement session sought to pave the way forward for SIX, Malaysia’s first pay-for-impact exchange, which was launched by Prime Minister Datuk Seri Najib Tun Razak last December.
The SIX Stakeholders’ dialogue took an initial step towards creating the first standardised SIX scorecard for impact investing in Malaysia, and was attended by more than 20 organisations representing funders, corporations, government agencies and regulators.
The SIX scorecard serves to quantitatively identify strong, impactful organisations and projects for listing on SIX, and provide organisations and projects with a guided path of improvement towards potential listing on SIX.
The relevant information gathered will be incorporated into the design and development of the SIX scorecard, allowing strong monitoring, tracking and transparency.
AIM chief executive officer Naser Jaafar stressed that SIX was a platform for impact investing, an investment strategy that aims to generate measurable, beneficial social or environmental impact as well.
“The dialogue was held to enable key stakeholders to provide early input into the development of the SIX scorecard, against the background of global standards for impact investment and exchanges.
“With the development of the SIX Scorecard, AIM will be creating a global benchmark that Malaysia can be proud to call its own,” he said.
The dialogue was attended by representatives of private corporations, government agencies, non-governmental organisations (NGOs), social purpose organisations (SPOs) and social enterprises from Bursa Malaysia Bhd, Registrar of Societies (RoS); Kumpulan Wang Persaraan (KWAP); Inland Revenue Department (IRD); Malaysian Global Innovation & Creativity Centre (MaGIC); Maybank Foundation; Maybank Investment Bank Bhd; Permodalan Nasional Bhd (PNB); Petrosains Sdn Bhd; Securities Commision Malaysia; Companies Commission Malaysia; Public Private Partnership (UKAS); United Nations Capital Development Fund (UNCDF) and Khazanah Nasional Bhd’s Yayasan Hasanah.
This social intervention project funders platform is an advocate for social economy that cuts across private, public and social sectors, embracing all types of engagements that explore impact investing.
Designed to parallel a stock exchange, SIX will be the focal point for funding SPOs and their social intervention projects.
Prior to listing on SIX, SPOs including NGOs and social enterprises will be evaluated based on their capacity, track record, intended social impact, financial sustainability, measurement and innovative elements in a process similar to an initial public offering (IPO) listing exercise for a company.
Using the information generated through this process, funders can seek out social intervention programmes that appeal to them and that reflect their companies’ corporate goals.
AIM also organised a Funders Workshop that leveraged on AIM’s Social Outcome Fund (SOF) and Asia Venture Philanthropy Network’s (AVPN) regional expertise to introduce ways in which funders can diversify funding to create social impact beyond traditional donation and grant-making models.
At the workshop entitled “Scaling Up Impact: Evolving Grantmaking and Philanthropy in Malaysia”, AIM social innovation vice-president Dr Melissa Foo shared insights into how funders in Malaysia can best support the growth needs of the SPOs in Malaysia through AIM’s innovative social financing models and platforms such as the SOF and SIX.
Representatives from the AVPN also presented an up-to-date scenario of the development of impact investing within the region.
AVPN is a funders’ network based in Singapore established to build a high impact philanthropy and social investment community across Asia.
The presentation was followed by a discussion to simulate an actionable ecosystem for building innovative funding models.
AIM encourages and invites all SPOs with high-impact projects to apply to be included in the SIX registry through its selection process, and be matched with potential funders to explore potential partnerships in social intervention work.