Malaysian Global Innovation & Creativity Centre (MaGIC), an agency under the Ministry of Science, Technology and Innovation (MOSTI) tasked to strengthen Malaysia’s position as an emerging innovation nation, has called on all stakeholders to strengthen Impact Ecosystem in Malaysia and beyond in order to address Sustainable Development Goals (SDGs). The challenge of meeting SDGs is not just about mobilizing more financial resources, but engaging more comprehensive resources – talents, know-how, entrepreneurial acumen, and energy of people to address the 2030 Agenda.

MaGIC issued the statement after co-chairing a high-level policy dialogue with United Nations Development Programme (UNDP) Malaysia on the development of an Impact Ecosystem to address the gaps and identify solutions to uncover issues and opportunities to build a mature and organised impact ecosystem.

The Dialogue was attended by key personnel representatives from Malaysian Research Accelerator for Technology and Innovation (MRANTI), UNDP, Khazanah Nasional Berhad and venture capital firm 500 Global.

The term ‘Impact Investment’ is widely defined as the intention to bring positive social outcomes, especially when deployed at a larger scale.The dialogue panelists concluded that there is a need for credible tools to define, measure and make impact approachable. Once impact is appropriately measured and showcased, more stakeholders are likely to take such impact seriously.

Under the UNDP-MaGIC partnership, the Social Impact Challenge Accelerator (SICA) program has collaborated with 500 Global to accelerate the growth of impact ventures targeting five priority fields; (i) enhancing ageing services for Malaysians; (ii) upcycling river waste to wealth; (iii) educating the future; (iv) innovating for children; (v) driving social impact – the startup way. Micro, small, and medium enterprises (MSMEs) are a key driving force of Malaysia’s economy, representing 97.2% of all businesses and contributing 38.2% of GDP in 2020

Khailee Ng, managing partner of 500 Global said, “The impact ecosystem has evolved rapidly in 10 years, there is now a large volume of activity (venture showcase days, consumer behavioural change, grassroots efforts) dedicated towards positive impact. People should identify a specific SDG or impact sector and start taking steps today towards significant future impact.”

“Investors are increasingly committed to play their part in building a more resilient and sustainable world. The momentum for SDG aligned investments is accelerating and making significant changes in the investment landscape globally and in Asia Pacific,” said Christophe Bahuet, UNDP deputy regional director for Asia and the Pacific. “Over five years, the impact investment market, which is currently estimated at USD 715 billion, has grown significantly. UNDP welcomes this positive trend and will continue working closely with Impact investors, the business community and governments to leverage this financing for the Sustainable Development Goals.”

The dialogue panelists concluded that it will take a mid-long-term approach to build the impact ecosystem. Therefore, awareness and buy in on impact investment will need to be improved for larger scale investments to drive positive impact. — Cordelia Lee

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