Kota Kinabalu: The development of social entrepreneurship in the State is further boosted through the three-year strategic collaboration agreement between the Sabah Social Entrepreneurs’ Association (Sosea) and Bank Islam.
Bank Islam Group Chief Social Finance Officer Mohd Nazri Chik said the collaboration also included extending access to financing to Sosea members.
Through the agreement, he said Bank Islam appointed Sosea as its change-maker and an implementation partner in realising the Bank’s social finance agenda.
“Hence, this collaborative venture intensifies the effort to achieve positive outcomes for eligible social entrepreneurs, underserved communities, and the environment,” said Nazri at the memorandum of understanding (Mou) signing ceremony, here, Friday.
Nazri said support from commercial banks like Bank Islam would 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 Entrepreneur and Cooperatives Development Ministry.
“Sabah is a thriving ground for dynamic social entrepreneurs and is poised to catalyse local socioeconomic growth while championing environmental well-being.
“A notable exemplar is Magret Daddy, a Sosea member and participant of Bank Islam’s microfinance programme, iTekad Bangkit.
“This woman entrepreneur is spearheading the revitalisation of neglected cocoa farms in her village in Kota Belud.
“Her efforts not only enhance the quality of cocoa production but also create a positive effect, enriching the lives of her fellow villagers.”
He said Bank Islam was ready to offer crucial support needed to social entrepreneurs such as Magret Daddy, enabling them to mobilise the efforts of entrepreneurs under their wings, including cocoa farmers, who play an essential role in generating the State’s economy.
Sabah, the country’s leading producer of cocoa seeds, accounts for over half of Malaysia’s cocoa crops.
“The same goes for the graduates of the International Islamic University Malaysia (UIAM), Lukman Awaluddin and his wife, Siti Faznur Khaled, who founded Brutti&Besi.
“They leveraged and turned 40 tonnes of wood pallet into furniture that saved more than 500 trees and also organised the BaikiHero programme to train youths to have the skills of repairing and making furniture to create employment opportunities in Sabah,” he said.
Launched in May 2020, iTekad is designed to mobilise social finance instruments such as zakat (tithe), sadaqah (alms or donation), waqf (endowment) and social investment funds by offering structured microfinance as well as providing business and financial management training to qualified applicants.
Since its launch, Bank Islam has empowered over 1,000 micro-entrepreneurs nationwide by distributing more than RM16 million in financial support under the iTekad programme.
Sosea President Zazila Roslan hoped the collaboration with Bank Islam would help more social entrepreneurs in Sabah, especially the underserved.
“Usually the underserved do not receive any grant injection from any banks.
“And I was made to understand that Bank Islam is one of the banks in Malaysia that cater to the needs of these group of people,” she said.
The MoU, she said, is not merely an agreement between Bank Islam and Sosea, but it encompasses the commitment for the communities in Sabah.
“We understand that the community is the heart of development, and the MoU is focussed on enabling local communities through social entrepreneurships.
“Social entrepreneurship is not only an economic opportunity, but also a platform to strengthen the bond among community members.”
Founded in 2021, Sosea comprises 70 social entrepreneurs and is Malaysia’s second-largest social enterprise association.
The Association aims to connect Sabah’s social enterprises through networking and strategic cooperation.
The MoU was signed by Nazri for Bank Islam and Zazila for Sosea.
Prior to signing of the collaboration agreement, Bank Islam conducted site visits to various social enterprises affiliated with Sosea in Kota Belud, Kundasang and Papar.
A productive engagement session was also held between the Bank and Sosea leaders and members to understand the challenges and untapped potential of Sabah’s social entrepreneurship landscape.
