4 October 2024, Kuala Lumpur –
Over the past five years, social enterprises have been working closely with the government to
address absolute poverty in Malaysia, with rates has dropping from from 8.2% in 2021 to 6.2% in
2022.
Government initiatives including grants and programmes such as the MRANTI Impact Challenge
Accelerator (MICA), Social Enterprise Accreditation certification and the zero-interest loans from
the Hasanah Social Enterprise Fund (HSEF) and social procurement initiatives – are among the
key instruments that have enabled social enterprises to grow and strengthen their offerings to
serve the needy.
For example, since 2019, accredited social enterprises such as Pepper Labs have been entrusted
with piloting several B40 community projects – which have generated measurable, high impact.
To date, Pepper Labs has re-invested over RM 7 million in social projects, impacting over
4,000 beneficiaries. Over this period, we have grown to be a trusted partner and effective
operator and a creative social innovator, bridging the gap between policy and grassroots
economic enablement.
Caption: Dapur Digital at PPR Wangsa Sari, refurbished with fully-fitted kitchen
Dapur Digital: Cloud Kitchen Pilot Programme Ready To Scale Nationwide
Recently, we rolled out a unique initiative called Dapur Digital – Malaysia’s first public-private-
philanthropy project in partnership with the Ministry of Finance, Jabatan Wilayah Persekutuan,
DBKL and Yayasan Hasanah.
Dapur Digital’s pilot programme involves several aspects of economic enablement. In addition to
refurbishing five PPR flats in Kuala Lumpur into cloud kitchens within six months, 50
individuals have been trained with a Micro-Credential Programme on how to operate a cloud
kitchen business. Each of the five Dapur Digital locales which have a high concentration of the
urban poor, have been given a target of RM10,000 in monthly sales. Within a week from its launch,
Kampung Limau Kitchen participants under the Dapur Digital programme made RM3,000 in
business. Their products are promoted and delivered through three food delivery platforms –
altogether making this a uniquely designed programme for transforming livelihoods.
With Budget 2025 coming up, we would like to put forward some considerations to the
government, given Dapur Digital’s potential to serve in closing the gap on poverty nationwide:
1) Tax Incentives for Public-Private Partnership Investments
a) Tax exemptions to GLCs or corporations which invest in social enterprises such
as Dapur Digital which will enable it to scale to more locations, accelerate the
equipping programme, while reaching and benefiting more underserved
communities nationwide.
b) Tax reliefs are extended to organisations and individuals making bulk
purchases from Dapur Digital and other social enterprises which have
demonstrated their capability and capacity to deliver to requirements. This
provides a means for enterprises to track and report the impact of their social
contributions – particularly with Scope 3 ESG reporting requirements already
coming onstream.
2) Social Procurement Acceleration
The government could also include accredited social enterprises in its e-procurement
database and list, particularly as Malaysia takes on the ASEAN Presidency in 2025, with
an expected hike in commercial, tourism and social activities. Many social enterprises
serve in these areas to equip and enable underserved communities.
Stronger public-private-philanthropy partnerships and collaborations can turn the MADANI
aspirations and RMK-12 goals into reality for the rakyat. We have demonstrated this is achievable,
measurable, timely – and ready to scale.
