KUALA LUMPUR: The government will formulate a social economy policy to provide a comprehensive roadmap for ecosystem development, enabling third sector players to scale up, enhance competitiveness and play a more significant role, particularly in addressing the nation’s socio-economic challenges.
According to the 13th Malaysia Plan (13MP) document, released by the Economy Ministry on Thursday (July 31), existing policies and action plans will be reviewed and streamlined to avoid overlaps and ensure they meet the current and inclusive needs of third sector players.
"An action plan to expand social economy activities based on an inclusive business model will be developed. Comprehensive guidelines covering procedures and regulations, including monitoring and reporting mechanisms, will be introduced to strengthen the capacity of third sector players.
"A comprehensive database will also be established to enable effective analysis and reporting of social economy impact. Communication, education and public awareness activities will be intensified to raise awareness and encourage greater participation from organisations and the public in social economy activities," the document stated.
Inclusive legislation and regulatory frameworks will also be introduced, covering aspects such as licensing, auditing, resource distribution, supervision and enforcement, it said, adding that existing laws and regulations governing business activities will also be refined and streamlined.
"These efforts will improve the business environment to support the growth of third sector players and address issues of fraud and misappropriation of public donation funds," read the document.
It also said that social economy development will be strengthened to allow the third sector to play a more effective role in national development, adding that measures will be taken to enable relevant agencies to centralise governance and strengthen the management of the third sector.
"In this regard, the existing coordination functions for social economy development at the federal and state levels will be reviewed and streamlined," read the document.
Meanwhile, a clear policy direction, along with the development of an integrated and comprehensive social economy ecosystem grounded in good governance principles, will help mainstream the third sector as a key contributor to the country’s socio-economic development.
The people, as the target group, will have greater opportunities to be directly involved with third sector players in economic activities that can enhance social mobility, in line with efforts to raise the social safety net.
According to the document, the public can also play a role in addressing local social issues such as poverty, education dropouts, and gaps in care services.
"These measures are expected to enhance service delivery to be more transparent, responsive, and effective, while optimising the distribution of aid to the people," the document stated.
Under 12MP, social economy development focused on strengthening the capacity of the third sector to carry out economic activities as a catalyst for economic growth.
The National Social Policy 2030, National Entrepreneurship Policy 2030, and the Malaysia Social Entrepreneurship Blueprint 2030 were introduced to guide the direction of social economy development. Between 2022 and 2024, a total of 382 companies and organisations were accredited as social enterprises, generating a social impact valued at RM213 million.
As of 2024, there are 16,284 cooperatives nationwide, with a combined membership of 7.18 million and total revenue amounting to RM68.1bil. - Bernama
