ALOR SETAR: The Companies Commission of Malaysia (SSM) views that a legal framework study is needed to standardise financial reporting practices for non-governmental organisations (NGOs) handling public funds in the country.
Its chairman, Ahmad Sabki Yusof said this came following concerns that some charities were not complying with financial rules, leading to a lack of transparency in using public funds for charitable purposes.
"We believe a study is necessary to establish a legal framework that can standardise the governance of welfare organisations and this will be able to ensure that such organisations, especially those receiving public funds, adhere to the same standards.
"At present, these organisations report similarly to other companies despite using public funds for welfare purposes.
Ahmad Sabki said that SSM was actively monitoring the situation to guarantee transparent operations by these organisations.
"While various jurisdictions permit the registration and regulation of non-profit organisations collecting public funds, the crucial question is whether there exists a unified governance framework to regulate the financial management of all these charitable organisations," he explained.
Meanwhile, Ahmad Sabki urged entrepreneurs to take advantage of the Free Business Registration Scheme (SPPP), specifically designed to benefit businesses within the B40 group and full-time Higher Education Institution (IPT) students.
"As of Nov 30, 2023, a total of 90,567 businesses have been registered for free, including 46,943 full-time IPT students and 43,624 entrepreneurs from the B40 group," he reported.
Concerning the organisation of the PBU23 programme, he said it successfully offers guidance and opportunities to local entrepreneurs, aiding in the enhancement and progression of their businesses.
He said exposure to the fundamentals of entrepreneurship fosters creative and innovative thinking. adding that this understanding, encompassing management, finance, marketing, operations, and successful business strategies, contributes to the creation of more competitive business market opportunities
– BERNAMA
TAGS: SSM, organisation, public funds, legal framework,financial