Sustainable development necessitates a fundamental shift in the way finance is approached – from conventional practices to an ethical and innovative model, in the form of social finance.
From ending poverty to addressing climate and environmental-related issues facing humanity, finance cannot just be for financial performance alone.
Likewise, businesses should evolve beyond profit maximization and corporate social responsibility (CSR), with social enterprises playing a key role in sustainable development by addressing the specific needs of target groups.
Recognising the importance of social finance and social enterprise for sustainable development, IKRAM and KADRI initiated a study to look into these transformative approaches.
As an NGO committed to economic prosperity and equitable wealth distribution, we believe social finance and social enterprise offer viable solutions to address the myriad of challenges facing society.
Exciting developments are underway, with innovation of social finance and blended finance, such as Malaysia’s value-based intermediation (VBI), and the adoption of fintech for inclusivity.
In 2024, our social finance seminar successfully brought together regulators, practitioners and academicians, fostering valuable networking opportunities and laying the groundwork for deeper collaboration and co-creation among local players.
To advance the social finance agenda, IKRAM and KADRI have embarked on a study to examine public attitudes and behaviours on the act of giving, through social finance instruments such as zakat and waqf. We hope the study will offer meaningful insights to further develop social finance in Malaysia.
The journey for sustainable development through social finance and social enterprise is ambitious, with challenges along the way.
Achieving social and economic justice demands close partnerships, collaboration, and co-creation across the public, private, and non-profit sectors, supported by a society that embraces strong values.
We invite stakeholders from all sectors to join this collective effort, ensuring that social finance and social enterprise continue to drive meaningful change for future generations.
Note: Reports on our studies will be released later this year. We hope the publications serve as a valuable resource for policymakers, regulators, practitioners and academicians and all those interested in shaping a more equitable and sustainable future through social finance and social enterprise.
Mohammad Abdul Hamid
Head of Economic Prosperity Cluster
Pertubuhan IKRAM Malaysia
