FREQUENTLY ASKED QUESTIONS (FAQ)

SOCIAL IMPACT MATCHING (SIM) GRANT

Malaysian Global Innovation & Creativity Centre (MaGIC)

The SIM Grant - a PENJANA initiative, totaling to RM10 million. SIM Grant was introduced to support social enterprises and social innovation in Malaysia. For every Ringgit earned through crowdfunding, SIM Grant will match that amount, in a 1:1 ratio.

General

What are Social Enterprises (SEs)?
Businesses that proactively create positive social or environmental impact in a financially sustainable manner.
What do we mean by crowdfunding?
Crowdfunding involves collecting donations and/or contributions through various channels, platforms, private entities and individuals.
Will the SIM Grant provide crowdfunding support? 
No. Crowdfunding activities and their success are the responsibility of the applicant. In the event MaGIC has any initiatives to support the crowdfunding activities, the applicant will be informed. 
Where can I crowdfund?
Capital can be crowdfunded from any legitimate sources subject to the eligibility criteria of the SIM Grant. However, MaGIC has partnered with 6 crowdfunding platform partners that are non- exclusive, GIVE.asia, LaunchGood, NGOhub, Sedunia, SimplyGiving and SocioBiz by Alliance Islamic Bank to guide and support prospective SIM Grant applicants to kickstart their crowdfunding journey.
What benefits will I get by crowdfunding with your partners?
Our partners will provide the following:

A 20% rebate on the total platform fee to each respective successful SIM Grant applicant. The 20% rebate however will only be applicable for the first RM1 million cumulatively raised on the platform and matched upon approval of SIM grant application; and

Additional crowdfunding support through information sharing sessions and promotional campaigns assistance

Have a question not covered by the FAQ? 
Please send your inquiries to penjanasegrant@mymagic.my.
Where can I obtain information to apply for the SIM Grant?
Please download our Step-by-Step Guide available at  https://mymagic.my/penjana-sim-grant

About SIM

What is the Social Impact Matching (SIM) Grant?
Social Impact Matching (SIM) Grant, also known as the Social Enterprise (SE) elevation initiative announced by YAB Prime Minister in June 2020, is a part of the COVID-19 pandemic Short-Term Economic Recovery Plan (PENJANA). 
What is the purpose of the SIM Grant?
The SIM Grant aims to support SEs and other social impact businesses in Malaysia to sustain their initiatives/programmes, harness their capability to fundraise, increase public awareness in social innovation and scale their innovative solutions for good social and/or environmental outcomes. SIM Grant’s objectives are to: 

Promote inclusive and responsible businesses that create a positive impact on Malaysian society;

Stimulate the private sector and general public participation in seeding and scaling social innovation to deliver impact to society, and in doing so, cultivate ‘Doing Good’ as the new norm; and

Help rebuild the livelihood of communities while cultivating and scaling new innovative solutions for social good.

What is the scope of the SIM Grant?
The scope of SIM Grant disbursement includes but not limited to the following:

Innovative solutions in the following impact areas:

Community livelihood

Food security

Health and social wellbeing

Environmental protection

Heritage preservation

Provide direct and/or indirect benefits to target beneficiary groups

Increase the capacity of beneficiaries and/or the social impact businesses themselves

Sustain and support social innovation/solutions and increase the potential to unlock further opportunities, where possible.

How much funds have been allocated to the SIM Grant?
The overall available fund for the SIM Grant amounts to a maximum of RM10 million which is funded by the Ministry of Finance (MOF).
Who will be administering the SIM Grant?
Malaysian Global Innovation & Creativity Centre (MaGIC) will be administering SIM Grant on behalf of the Government of Malaysia.
When will the SIM Grant be available and for how long?
The SIM Grant will open for application starting 1 August 2020 for a period of 12 months or upon full disbursement of RM10 million, whichever comes first.

How It Works

How does the SIM Grant work?
The SIM Grant will be deployed via a 1:1 matching mechanism which is only available to eligible applicants with successful crowdfunding initiatives.
Do applicants have to declare their sources of capital?
Yes, applicants will have to declare their eligible sources of capital during the application process.
What are the eligible sources of capital to ensure ‘successful outcome from crowdfunding initiative’?
Eligible sources of capital are defined as follows: 

Donations, defined as philanthropic or voluntary charity proceeds received without recourse; and/or

Contributions, defined as capital received without recourse to be channeled exclusively to seed and/or scale innovation solutions for the social impact which can include but not limited to:

Direct grant; and/or

Other grant or funds received from validated capacity building programmes

Are there any restrictions on eligible sources of capital?
Yes. Eligible sources of capital must be those received from private registered entities, which includes:

Registered corporations in and/or outside of Malaysia;

Registered not-for-profit organisations in and/or outside of Malaysia; and/or

Verified individuals in and/or outside of Malaysia

However, excludes those sources of capital received directly and/or indirectly from Government and/or Government-related entities such as Government agencies and regulatory bodies funded directly by the Government of Malaysia.
Is there an effective date of eligibility for sources of capital?
Yes. Eligible sources of capital are those crowdfunded effectively from 1 July 2020 onwards.
What is the matching ratio of the SIM Grant?
The matching ratio of the grant is at 1 to 1 (1:1) i.e. for every RM1.00 crowdfunded by the applicant, RM1.00 grant will be awarded; equivalent to the amount it has successfully crowdfunded subject to the capping amount, based on the types of applicant (Accredited SE, Non-accredited SE, and Any other individual or entity).
How much can I apply for?
The SIM Grant provides a minimum of RM5,000, up to a maximum of RM500,000 matching grant per application. The threshold for maximum grant disbursement differs based on the types of applicant (Accredited SE, Non-accredited SE, and any other Individual or Entity).

Application Process

How to apply for the SIM Grant?
Applicants must submit their application via an online platform determined by MaGIC. Complete information and documentation must be submitted online to facilitate evaluation by MaGIC. There are three (3) steps to the application process as follows:

Step 1 - Eligibility screening process

Step 2 - Due diligence process, followed by evaluation and approval of the applicant by JAC

Step 3 - Documentation and grant disbursement

How to know if an applicant is eligible for Step 1? 
The applicant to the SIM Grant must possess a successful crowdfunding campaign that:

Crowdfunded at least 80% of the amount of grant to be applied for; and

Has eligible sources of capital, raised effectively from 1 July 2020 onwards, defined as those received from private registered entities, which includes:

Registered corporations in and/or outside of Malaysia;

Registered not-for-profit organisations in and/or outside of Malaysia; and/or

Verified individuals in and/or outside of Malaysia

However, excludes those sources of capital received directly and/or indirectly from Government and/or Government-related entities such as Government agencies and regulatory bodies funded directly by the Government of Malaysia

Provides innovative solutions in following impact areas: (i) community livelihood, (ii) food security, (iii) health and social wellbeing, (iv) environmental protection and (v) heritage preservation

Provide direct and/or indirect benefits to target beneficiary groups

Who can apply for Step 1? 
The applicant shall be either one of the following:
An Accredited Social Enterprise
Maximum SIM Grant Entitlement: RM500,000

SE accredited under the SE Accreditation programme

There shall be a maximum allocation of 30% of the overall SIM Grant, i.e. RM3 million, available for accredited SEs.

A Non-Accredited Social Enterprise
Maximum SIM Grant Entitlement: RM250,000

Required to register as a SE Basic  with MaGIC, under the SE.Accreditation Programme;

Has a clear social or environmental goal;

Is equipped with a sustainable business model for long term impact, e.g. more than 30% of the total annual revenue is earned as opposed to contributions or grants

Allocates a significant amount of resources towards achieving their social or environmental goal by fulfilling one of the following:

At least a 30% workforce from the target beneficiary group

Minimum 15% of business costs is spent on achieving an environmental mission or channeled towards providing income, training and/or subsidised goods/services to target beneficiaries group

At least 30% of profits distributed back to business operation to achieve social/environmental mission

Any other Individuals or Entities
Maximum SIM Grant Entitlement: RM20,000

A clear plan to address social and/or environmental issues;

Clear target beneficiaries; and

Established a minimum viable product/structure.

When will the applicant know if they passed Step 1?
Applicants will be notified of their eligibility to proceed to the next step (Step 2 - Due Diligence Process) by MaGIC within 5 working days of their submission date via written communication.
How to proceed to Step 2?
Upon notification of eligibility, applicants shall within 5 working days submit via a predetermined online platform, a full proposal containing details of:

Intended project or business plan

A cash flow projection (for grants above RM50,000 - minimum 3 years), with details of costs to be incurred and other relevant information for satisfactory evaluation

A detailed breakdown of the utilisation of proceeds (both crowdfunded portion and SIM Grant), with details of tranches for application above RM50,000

A list of impact indicators to track the progress of the intended project

A detailed implementation plan including but not limited to timeline, tracking mechanism of impact and milestones

Historical track record (where available)

Credentials of the management team and/or promoter.

A due diligence process (Step 2) will be initiated on the eligible applicants upon receiving the complete submission of documents within 5 working days from the submission date. The due diligence process is estimated to take approximately 14 working days to complete, subject to the completeness of the information. 
Will the applicant be contacted during the due diligence process? 
There may be an occasion whereby applicants are expected to provide or furnish additional information as and when required to facilitate the completion of the due diligence process. 
What are the criteria considered by JAC for SIM Grant approval and disbursement?
Upon completion of due diligence, the findings will be tabled to the Joint Approval Committee (JAC). The criteria to be considered by the JAC for grant disbursement approval are as follows:-
Novelty of Innovation

Significance of the impact area in relation to SIM Grant’s target impact areas

Level of originality, disruptiveness and/or extent of incremental change the solution provides relative to the impact area.

Effectiveness of proceed utilisation

At least 70% spent and/or invested in creating a clear and measurable impact for the target beneficiaries - to show evidence of how each RM1 will create impact and how it leads to impact indicators

At least 5% on marketing and/or promotional activities for the initiative

Feasibility of proposal 

The extent of viability with key milestones in the proposed business plan/solutions to address challenges identified within the impact area

Reasonableness in financial projection, including assumptions adopted and clear timeline in achieving milestones identified

Scalability of impact

At least 2 indicators in measuring impact created

The relevance of indicators to impact area and utilisation spending

Potential to scale the solution, considering the sustainability of the business model

Capability of management team/promoter 

Level of performance via historical track record, credentials and/or reference from independent and verified parties

Who is the JAC and what are their roles and responsibilities?
To ensure a transparent, independent and fair approval process, a Joint Approval Committee (JAC) shall be formed to review, evaluate and approve eligible applications. The JAC consists of 4 members who are representatives from MOF, MaGIC, Yayasan Inovasi Malaysia (YIM) and Yayasan Hasanah (YH). The JAC will assess and deliberate all eligible applicants, their proposals on its feasibility, effectiveness and intended outcome, the due diligence findings and ultimately make decisions on the application. The JAC will jointly announce the approval decision within 5 days from date of approval. Decisions are deemed final thereafter. The approved applicant will be notified via written communication by MaGIC.
What happens at Step 3?
Upon approval by the JAC, the approved applicant shall provide evidence of crowdfunded funds received and sign an agreement with MaGIC outlining the required deliverable and/or milestones (if any), as well as terms and conditions attached to the SIM Grant
How long does the entire application process take?
The entire process is estimated to take no longer than 2 months maximum. Applications will be processed in batches to be reviewed by the JAC at predetermined dates, on a first come first serve basis. Please refer below for the overall processing time: 
Step 1: Eligibility Screening Process
Applicant to apply for eligibility:

The eligibility check will be completed within 5 working days. Applicants will be notified of the results via email.

Step 2: Due diligence process, and evaluation and approval of the applicant by JAC 
Upon the approval of eligibility:

The applicant will submit their proposal via an online platform within 5 working days, containing: (i) their project/business plan; (ii) a cash flow projection (for grants above RM50,000 - minimum 3 years); (iii) breakdown of the utilisation of proceeds (of both funds crowdfunded and grant amount); (iv) impact indicators to track progress; (v) detailed implementation plan; (vi) historical track record (where available) and (vii) team credentials;

Upon submission, due diligence will commence, lasting approximately 14 working days*;

The JAC will convene at predetermined dates to review applications** based on the following criteria: (i) novelty of innovation; (ii) effectiveness of proceeds utilisation; (iii) feasibility of proposal; (iv) scalability of impact and (v) capability of management team/promoter. Applicants will be informed of their decision via email within 5 working days.

To ensure adequate deliberation time for each application, MaGIC reserves the right to delay   the due diligence process should the volume of applications exceed a reasonable amount.
*Subject to the completeness of the information provided by the applicant.
**Only upon the completion of due diligence. In the event of applications which are still undergoing due diligence, at the time of the JAC meeting, these incompleted cases will be reviewed during the next JAC meeting on a first come first serve basis.
Step 3: Documentation and Grant Disbursement 
Upon the approval by the JAC: 

Applicants will provide evidence of crowdfunded amount received

Sign an agreement with MaGIC outlining the required deliverable and/or milestones (if any), as well as terms and conditions attached to the SIM Grant

Can an applicant reapply?
Rejected applicants are allowed for reapplication upon fulfilling the eligibility criteria. The eligible applicants are allowed to receive the grant one (1) time only under the SIM Grant initiative.
Any recourse to the SIM Grant?
Post-approval, the JAC holds the right to disqualify and revoke any approved applications and/or grant disbursement, at any point of time, in the event that the information and evidence are available to confirm the following:

Wilful misrepresentation of information during application;

Involvement of fraud or money laundering activities; and/or

Massive drift or significant changes from the intended objectives and outcome as represented during application.

How will my data or information be treated? 
Upon submission of an application including personal data information, applicants are deemed to agree with MaGIC’s data privacy policy and declare all information provided is true and correct. Any willful misrepresentation shall render disqualification of this application. All applications and submission will be treated in strict confidence and processed for the SIM Grant-related purposes only. 

Grant Disbursement

What happens after the applicant obtained approval for their application? 
Upon approval by the JAC, the approved applicant shall provide evidence of crowdfunded funds received and sign an agreement with MaGIC outlining the required deliverable and/or milestones (if any), as well as terms and conditions attached to the SIM Grant. The SIM Grant will be disbursed by MaGIC within 14 working days from date of signing of an agreement with MaGIC.

How will the SIM Grant be disbursed?
For matching grant of RM50,000 and below, 100% disbursement upon approval by the JAC and fulfilment of all prerequisites identified by the JAC, if any;
For matching grant of more than RM50,000, the disbursement will be done in tranches upon fulfilment of pre-agreed milestones as stated below:

2 tranches for matching grant amount between up to RM200,000

3 tranches for matching grant amount more than RM200,000 and up to RM500,000

With the first tranche to be disbursed upon approval of application and fulfilment of all prerequisites.
What are the applicant’s obligations upon receiving SIM Grant?
The SIM Grant recipient must submit impact and progress reports, containing target and results to-date as well as interventions to close any gaps to MaGIC at pre-agreed intervals. Failure to comply shall render potential clawback and/or discontinuation of grant disbursement. The SIM Grant recipient shall make a self-declaration in cases of potential mission drifts and/or significant change in direction or business plan. Non-compliance to terms and conditions in the grant agreement will lead to clawback of grant and/or cancellation of the entire grant eligibility.
Is the applicant expected to spend the grant received within a timeframe? 
Yes. Upon receiving the grant, applicants are expected to utilise the full amount within 12 months of the first disbursement.