Malaysia mobilises non-profit sector to address socio-economic challenges

Malaysia is mobilising the non-profit sector to help address increasingly pressing socio-economic challenges, through the launch of a social exchange platform by the Securities Commission Malaysia.

Speaking to the press at the launch ceremony on May 25, Deputy Finance Minister Liew Chin Tong said Malaysia needs broader cooperation among non-profit organisations, social enterprises, and other socially driven organisations to tackle issues such as an aging population, climate risks, and concerns over employment and wages among the younger generation.

Liew said the "third sector" should no longer be seen purely as non-profit organisations but could also include commercially sustainable entities that pursue social objectives.

He pointed to healthcare as an example where private operators can still perform broader social functions if they are properly regulated and transparent.

According to him, policymakers should adopt a whole-of-nation approach, with the non-profit sector encompassing a wide range of organisations, from charities helping ordinary citizens to social enterprises and other businesses that form part of this sector.

Meanwhile, Securities Commission Chairman Mohammad Faiz Azmi said the Social Exchange initiative reflects the need to go beyond government funding alone to meet growing social needs. He said not all community and social challenges can be addressed through public financing, making structured market-based channels increasingly important.

Global philanthropic capital is significant, estimating charitable contributions at about 1.3 trillion USD annually, highlighting the scale of resources that could be better coordinated for social impact.

The platform, he said, is designed to ensure these funds are channelled more effectively through clearer governance, disclosure and reporting requirements for participating non-profit organisations./.

VNA