KUALA LUMPUR:The 2021 Budget is considered a new recognition especially for the development of social enterprises and non-governmental organizations (NGOs) in empowering target groups.

Masala Wheels co-founder Kuhan Pathy said apart from financial assistance, allocations to the sector could help ease the burden of the urban poor.

He explained that the purchase of goods and services involved with social enterprises will directly benefit the community.

“For example, in the 2021 Budget, there is one sector, namely the Delivery of Alternative Services. We see that the government will allocate RM20 million to social enterprises for the development of the sector.

"Meanwhile, another RM20 million will be allocated to the Government e-Procurement Impact Program," he told Astro AWANI.

Commenting further, Kuhan said, the assistance channeled is important, especially in the sustainability of sustainable income.

"If we look, there are various assistance provided. First in terms of micro-financial assistance, where for example Tekun - the target group gets micro-financial assistance to start a small business.

"Besides that, there is also capacity building provided with the involvement of social responsibility organizations where government-linked companies (GLCs) and NGOs support community empowerment initiatives," he explained.

At the same time, Kuhan admitted, the incentives of the Wage Subsidy Program introduced by the government also helped him retain employees.

Masala Wheels, founded in 2015, is a social enterprise that helps solve social problems among high-risk youth.

To date, more than 100 high-risk youths have been trained, while 100 graduates are given exposure in aspects of social entrepreneurship.