April 12, 2019

Ministry of Entrepreneur Development Driving Positive Change through Social Procurement

  • Accreditation Guideline to facilitate social entrepreneurs through their accreditation process
  • MED to generate social procurement value of MYR XXX before year 2020
  • SEA to accredit XXX social entrepreneurs via online platform 

Kuala Lumpur, Malaysia, 12 April 2019 – The Ministry of Entrepreneur Development (MED) today launched the Social Enterprise Accreditation (SEA) Guideline at the Malaysian Global Innovation & Creativity Centre (MaGIC) to create further systemic change through social procurement. This initiative is spearheaded to ensure a positive trajectory of social enterprises in the country, spur the nation's entrepreneurial ecosystem as well as provide local social enterprises with an accreditation certificate that will increase their credibility as an enterprise, thus exposing them to more business opportunities. 

The Social Enterprise Accreditation Guideline is a step-by-step playbook to facilitate social entrepreneurs through their accreditation process. The guideline provides clarity on the definition of “social enterprises”, highlights the types of social enterprises and the various business models it can adopt, discusses the benefits of being registered or recognised as a social enterprise, provides a detailed list of the accreditation criteria and a deep dive into the process to get accredited. 

With the Social Enterprise Accreditation (SEA) by MED, local social enterprises will have the opportunity to prove their credibility, gain recognition and communicate their commitments on social and environmental impact. This will help them attract talent and win business by standing out as an ethical choice in a crowded market. The accreditation also allows for social enterprises to be listed on a public directory to connect with potential customers, use the social enterprise accreditation mark to validate its status and boost credentials, get access to funding opportunities and join a network of Malaysia’s leading social entrepreneurs to drive social or environmental change. 

The SEA Guideline was developed as part of MED’s efforts to encourage social entrepreneurs to expand their markets and start exploring business opportunities with the public and private sector.

Minister of Entrepreneur Development, YB Datuk Seri Mohd Redzuan Yusof at the launch shared  ”As part of our mandate as a ministry that is championing social entrepreneurship across the nation, it is our duty to provide guidance, a ‘stepping stone’, to not only encourage our existing social entrepreneurs but to also entice the aspiring ones to venture into social businesses. We want to make apparent the beneficial impact social procurement brings to the private and public sector players who choose to procure from social enterprises, the beneficiaries of the social enterprises and the social enterprises themselves. Social procurement catapults the growth and maximise impact in helping the nation fulfill goals of enhancing inclusiveness towards an equitable society, pursuing green growth for sustainability, accelerating human capital development and improving well-being for all Malaysian which also contribute to the United Nations Sustainable Development Goals (SDGs).”

The Social Enterprise Accreditation, first launched as the MaGIC Impact Driven Enterprise Accreditation (IDEA), is a landmark initiative launched in September 2017 that seeks to empower the public and private sector as a force for good by integrating social value and responsibility into their value chain through social procurement. This means the public and private sector players are now able to create impact through their day-to-day procurement activities, creating a more sustainable capital flow towards B40 communities. 

SEA offers the public and private sector easier access to engage social enterprises, creating a highly sought market access at the same time. Social procurement also provides social enterprises with the opportunity to build confidence and demonstrate professionalism, an important first step in engaging with other businesses in the community. 

MED’s Social Enterprise Accreditation also functions as an online platform to connect social enterprises with the public and private sectors. The platform contains an online directory with a list of certified social enterprises, impact indicators of the social enterprises and quarterly reports on their impact performance aside from being the ‘go-to’ platform for social entrepreneurs to seek guidance and information about social entrepreneurship. 

The platform also connects key players who are keen to take corporate social responsibility (CSR) to the next level with accredited social enterprises to further a good cause, rather than a one-off project. Through social procurement, the public and private sectors can be directly involved in creating market opportunities for social enterprises, providing employment to disadvantaged communities and addressing crucial social issues the local community faces. 

On top of that, social procurement allows the public and private sectors to incorporate addressing community issues as part of the way they do business. It also helps the sectors to achieve both their social and economic goals while supporting the government’s objective to ensure inclusive economic growth in Malaysia.

Redzuan Yusof said, ”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 Social Enterprise Accreditation (SEA) Guideline that aims to answer questions most social entrepreneurs often face which limits social entrepreneurs from achieving growth or even taking flight, despite their strong passion to create change. The Social Enterprise Accreditation will help their efforts to create positive social change, helping them demonstrate credibility and providing them access to resources and opportunities.”

“While we have been mandated to create 50,000 entrepreneurs from the B40 communities, M40 communities and social enterprises every year for the next five years, we want to ensure that it is not merely a numbers game. While we are focusing on the quantity, we are not compromising on quality. For this reason, MED is placing an emphasis on generating a procurement value of MYR XXX before year 2020.  These social enterprises have the potential to be strong vendors to corporations, SMEs and more and we want to help bridge them. I urge all corporations, government bodies and SMEs to start emphasizing on social procurement to realise a people-centric economy”, he continued.

These pioneering social enterprises include Silent Teddies Bakery, The Batik Boutique, Biji Biji, FOLO Farms, GOLD, Dialogue in the Dark, Earth Heir, Project Woodworks, The Picha Project, Stich.A.Giggle, The Truly Loving Company, Agak-Agak, Suri, Foodabox, Greenyards, SOLS 24/7 SE, PT Foundation CHCC, 1L Carwash, Discover Muay Thai, Ecoloo and Project 57.

Besides championing social procurement in Malaysia, as SEA impact partners, the public and private sectors can also be involved in driving the discussion on how to improve the social enterprises sector as key stakeholders. SEA has secured 59 impact partners so far. Current IDEA network partners include British Council, Taylor’s Education Group, World Bank Malaysia, AmInvestment Bank and IOI Group among others.

SEA will also connect social enterprises to consumers through a marketplace in a movement called Buy for Impact. Buy for Impact is a campaign that aims to promote a conscious buying behavior among the general public. By buying goods and services from social enterprises, consumers help to address crucial issues Malaysia faces and supporting the government’s goal of creating an inclusive economy. 

The Social Enterprise Accreditation (SEA) Guideline will be available for download in Bahasa Melayu and English at https://central.mymagic.my/sea.

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MaGIC enables and supports the sustainable growth of entrepreneurship in Malaysia. Our goal is to drive sustainable ecosystem development through innovation, as well as create value and new economic drivers for Malaysia. We help entrepreneurs at every stage of their journey by collaborating with other government agencies, industries, and community stakeholders. To build our nation’s creativity and innovation skills as well as grow talent, we offer dynamic programmes and capacity-building initiatives. MaGIC is also working to position Malaysia as a gateway to Asia for entrepreneurs to expand their business and reach. Social entrepreneurship is a key focus for us; we aim to drive the movement forward through community engagement, capability development, and social impact measurement initiatives. For more information on MaGIC, please visit http://mymagic.my/en/

For more information, please contact

Hazel Hassan, hazel.hassan@mymagic.my (019 217 8191)

Reshmi Haran, reshmi@mymagic.my (011 3693 2973)