Govt allocates RM3 mln to boost social economy

A RM3 million Social Outcome Fund (SOF) aims to boost financing and creativity in delivering social services in the country.

Minister in the Prime Minister's Department, Datuk Seri Nancy Shukri, launched the fund at the Social Economy and Investment Conference (SEIC) 2017 here today.

She said the investments made by corporate investors might be entitled to a reimbursement from the SOF if their investments resulted in 1.5 times or more of value in terms of cost savings for the government.

"It is our hope that potential social-purpose organisations will take this opportunity to obtain funds for their social programmes.

"The fund encourages corporations and foundations to invest in ventures with social impact that goes beyond corporate social responsibility and help individuals and communities, as part of a social economy," she said before launching the fund.

SOF will be managed by Malaysia's National Innovation Agency, or Agensi Inovasi Malaysia, a statutory body under the Prime Minister's Department created to jumpstart wealth creation through knowledge, technology and innovation to stimulate and develop the innovation eco-system in Malaysia.

Nancy said SOF was an extension of the government's effort to focus on people-centric economy, through the National Blue Ocean Strategy by delivering high impact, low-cost and rapidly executed programmes and services to the public.

She said social innovation was a long-term investment for the government.

"As every social problem is a long-term cost to the government and to society, there is a need to rethink the way we tackle conventional social problems, and prepare our present generation for the road ahead towards sustainable development.

"To enrich our social economy, is to unlock the collective power of social innovation for greater good," she said. - BERNAMA