KUALA LUMPUR: Bank Islam Malaysia Bhd and the Sabah Social Entrepreneurs Association (SOSEA) have inked a strategic collaboration agreement in order to support the growth of social entrepreneurs and provide members with greater access to financing.
By signing this agreement, Bank Islam has effectively designated SOSEA as its change-maker where the association will work with the bank to implement its social finance agenda.
Bank Islam group chief social finance officer Mohd Nazri Chik said that beginning this year, it will focus on developing social enterprises to grow the social impact and move towards a more inclusive financial system.
Mohd Nazri said support from commercial banks like Bank Islam will increase the potential of social enterprises and further ensure the success of the Social Entrepreneurship Action Framework 2030 (SEMy2030), which the government launched through the Ministry of Entrepreneur and Cooperatives Development.
"Sabah is a thriving ground for dynamic social entrepreneurs and is poised to catalyse local socio-economic growth while championing environmental well-being," he said in a statement.
Founded in 2021, SOSEA comprises 70 social entrepreneurs and is Malaysia's second-largest social enterprise association.
Meanwhile, Mohd Nazri said that the injection of funds through its iTEKAD programme will amplify the potential of the commodity, significantly contributing to the well-being of the local community.
Launched in May 2020, iTEKAD is designed to mobilise social finance instruments such as zakat (tithe), sadaqah (alms or donations), waqf (endowment), and social investment funds by offering structured microfinance as well as providing business and financial management training to qualified applicants.
The programme aims to empower eligible microentrepreneurs, including social entrepreneurs, to achieve financial resilience, generate continuous income, and create a sustainable value chain that would benefit the community.
Mohd Nazri said that moving on in 2024, Bank Islam will broaden its focus and collaborate with social enterprises in other states.
"This effort will provide opportunities for social entrepreneurs to enhance their skills and capabilities through our comprehensive iTEKAD microfinance programme," he said.