Kuala Lumpur, Malaysia, 12 April 2019 – The Honourable Minister of Entrepreneur Development, YB Datuk Seri Mohd Redzuan Yusof, today launched the Social Enterprise Accreditation (SEA) Guidelines at the Malaysian Global Innovation & Creativity Centre (MaGIC), an agency under MED.
The launch marked a positive trajectory for social enterprises in the country, as this latest initiative by MED is expected to spur the nation’s entrepreneurial ecosystem as well as provide local social enterprises with an accreditation certificate that will not only increase their credibility as an enterprise, but also avail them with increased business opportunities.
The SEA Guidelines is a step-by-step manual to facilitate social entrepreneurs through their accreditation process. It contains specific details regarding the scope of social enterprises, the different types of social enterprises and the various business models it can adopt, the benefits of being registered or recognised as a social enterprise, as well as a detailed explanation regarding the accreditation criteria.
The Guidelines was developed as part of MED’s efforts to encourage social enterprises to expand their markets and explore business opportunities beyond their current markets. Local social enterprises will now have the opportunity to prove their credibility, gain recognition and stand out as an ethical choice in an otherwise congested market of commercial competitors.
Once accredited, these social enterprises will be listed on a public directory, which will soon be available on MED’s website. These enterprises will then be able to connect with potential customers, use their accreditation status to validate and boost credentials, access certain benefits and opportunities, as well as become a part of a reputable network of social entrepreneurs that drive socio-economic and/or environmental change, in the country.
The Honourable Minister of Entrepreneur Development, YB Datuk Seri Mohd Redzuan Yusof noted that “As part of our mandate, MED will continue to assume the role of a guardian for all policies related to social entrepreneurship, or SE. We will continue to champion initiatives that will create a vibrant, dynamic and robust SE ecosystem across the country. We will be a partner, and a pathfinder for SEs in Malaysia. And we will not falter in our duty to provide guidance, support and facilitation to our existing and aspiring SEs.
Today’s launch is a significant milestone for MED and Malaysia, on our journey to inspire a social enterprise movement and further develop the social entrepreneurship ecosystem. I am excited to launch the SEA Guidelines today, as it is a demonstration of the Government’s commitment in recognising and according credit to deserving SEs. In addition, the Guidelines will also provide key answers to a number of questions that have been raised by our social entrepreneurs in the past.”
Accredited SEs may also benefit from tax incentives, as announced by the Government during the 2019 budget, whereby any party contributing to a social enterprise may qualify for a tax deduction of up to 10 percent of the aggregate income (if the contributor is a company) and 7 percent of the aggregate income (if the contributor is an individual).