KUALA LUMPUR, July 30 — The Entrepreneur Development and Cooperatives Ministry (KUSKOP) has announced a waiver of social enterprise rating fees to encourage more companies and organisations to obtain recognition as social enterprises in Malaysia.
Its minister Steven Sim said the exemption covered the RM300 Accredited Social Enterprise rating fee and the RM50 Basic Social Enterprise rating fee, which would be fully borne by the National Entrepreneurship Institute from August 1 to September 17, 2026, in conjunction with National Month and Malaysia Day.
"The aim is to encourage more companies to register as social enterprises," he told the media after officiating the 2026 Malaysia Social Enterprise Ecosystem Convention today.
Sim added that, to date, 649 social enterprises have received KUSKOP ratings, comprising 328 Aspiring Social Enterprises, 253 Basic Social Enterprises, and 68 Accredited Social Enterprises.
The figure remains well below the target set under the Malaysia Social Entrepreneurship Blueprint 2030, which aims to reach 5,000 social enterprises by 2025, underscoring the need to further strengthen the sector's ecosystem.
He said there was a possibility that companies, corporations and non-governmental organisations are already carrying out social impact activities but had yet to apply for ratings due to a lack of awareness and cost factors.
"There may already be businesses and corporations undertaking social impact activities, but because of a lack of awareness, costs and other factors, they have not come forward to register," Sim said.
The minister noted that registered social enterprises are also eligible for tax exemption incentives until December 31, 2027.
KUSKOP has also allocated a dedicated fund of nearly RM20 million to help social enterprises strengthen their business capacity and expand their operations.
The facilities available included the Social Enterprise Financing Scheme by SME Bank, which offered financing of up to RM500,000 at rates as low as three per cent, as well as the Cooperative Promotion as Social Enterprise Programme by the Malaysian Co-operative Societies Commission.
Meanwhile, KUSKOP has successfully reduced the processing period for social enterprise rating applications from 90 days to 30 days by streamlining the ministry's processes.
Sim said it has also introduced the Malaysia Social Impact Procurement Initiative to encourage more companies and government agencies to adopt procurement practices that account for their impact on society and the environment.
The social enterprise sector is still relatively new in terms of institutional development in Malaysia but plays an important role as the government's strategic partner in addressing social issues and fostering more inclusive community development.
Ten companies and agencies have become the pioneer group by making a social pledge under PRISMA to allocate a portion of their procurement to local social enterprises.
He said that KUSKOP itself is targeting at least RM300,000 in procurement from social enterprises this year, three times last year's RM100,000.
