Country Profile: Malaysia

Malaysia’s social procurement ecosystem is growing steadily, driven by government-led frameworks and increasing corporate collaborations with social enterprises. Initiatives like the Social Enterprise Accreditation (SE.A) and the Program Perolehan Impak Sosial Kerajaan (PPISK) are setting the foundation for a more inclusive procurement landscape.

Malaysia’s commitment to fostering social enterprises began with the Malaysian Social Enterprise Blueprint 2015-2018, establishing a strategic roadmap for ecosystem development. In 2019, the Malaysian Global Innovation and Creativity Centre (MaGIC) introduced SE.A guidelines to formalize and recognize social enterprises, enabling them to access public and private sector opportunities. This was followed by the Malaysia Social Entrepreneurship Blueprint 2030 (SEMy2030), which aims to accredit 5,000 social enterprises by 2030, including the introduction of the new ‘Aspiring SE’ entry-level accreditation in 2024.

The government’s PPISK pilot program in 2021 marked a turning point, dedicating budget allocations to encourage public sector procurement from social enterprises. Together, these frameworks reflect Malaysia’s ambition to integrate social enterprises into national supply chains.

Malaysia’s social procurement is gaining traction as corporations and government entities increasingly collaborate with social enterprises. According to a 2024 study by MyImpact Alliance and Yunus Social Business, 70% of surveyed social enterprises already sell to corporate clients such as PwC, Deloitte, and Shell. The primary mission of these enterprises includes addressing social and environmental challenges by employing marginalized communities and enhancing access to essential services.

They represent a diverse range of sectors: from manufacturing and finished products, food and agriculture, waste management as well as business services. The majority operates under a private limited company legal status. The primary mission of these impact-driven businesses is to address environmental and social challenges in Malaysia, for example by employing marginalised communities or offering access to education and essential services.

Many social enterprises surveyed in the study are experienced, counting more than 10 past clients. However, they face challenges such as ack of long-term contract visibility and commitment from companies. 50% of social enterprises had only one-time purchases from companies.