Social enterprises have been working closely with the government to alleviate dire poverty as the country’s poverty rate dropped to 6.2% in 2022 from 8.2% in 2021.
The improvement of the standard of living can be realised by the unique social-lifting initiative that incorporates public, private and philanthropic elements, according to a statement by Pepper Labs.
The socially-equitable initiative is also made possible by the support of governmental bodies and charitable organisations including Kuala Lumpur City Council and Yayasan Hasanah, a philanthropic foundation affiliated with Khazanah Nasional Bhd.
Government initiatives and grants are accessible through the MRANTI Impact Challenge Accelerator, Social Enterprise Accreditation certification, zero-interest loans from the Hasanah Social Enterprise Fund, as well as social procurement initiatives. These key instruments have enabled social enterprises to grow, strengthen and able to help the needy.
Since 2019, accredited social enterprises, such as Pepper Labs which has pioneered the Digital Kitchen programme, have been entrusted with piloting several community projects that have generated measurable impact.
To date, Pepper Labs has re-invested over RM7 million in social projects that have reached out to over 4,000 beneficiaries.
As the impending announcement of Budget 2025 draws near, social enterprises urged the government to provide tax incentives and tax exemptions for joint public-private partnerships and government-linked companies that invest in social enterprises, as well as tax relief for organisations or individuals who buy in bulk from social enterprises.
Additionally, the government could consider adding accredited social enterprises to its e-procurement database to obtain products and services from these businesses.
