Putrajaya aims to strengthen NGOs and social enterprises as part of economic growth push

This comes as part of its shift towards a high-value, high-growth economy.

Malaysia's government is looking to strengthen the country's third sector - one comprising groups such as non-governmental organisations, cooperatives and social enterprises, in a move to transition the country into a high-value, high-growth economy.

As cited in a report by The Edge Malaysia, shared on the Malaysian Institute of Economic Research (MIER)’s website, Datuk Nor Azmie Diron, Economy Ministry Secretary-General said the third sector is recognised as a key component under the 13^th Malaysia Plan (13MP).

Thus, he highlighted, there is an urgency to push for this, as the government cannot create more agencies or departments to support the shift towards a value-creation-based economy.

He added that Malaysia already has a "bloated civil service" and that the third sector currently receives little focus, as the country relies heavily on the public and private sectors for the provision of goods and services.

The 13MP, which serves as Malaysia’s development roadmap for 2026 to 2030, places strong emphasis on the role of the third sector in addressing socio-economic challenges and contributing to national development. It also outlines the creation of a social economy policy, alongside a review and streamlining of existing policies and regulations, to improve the scale and competitiveness of third-sector players.

“This third sector will be used as an engine to support initiatives aiming to improve the rakyat’s standard of living,” Nor Azmie was quoted as saying.

Per the report, specific incentives for the sector are expected to be announced in the upcoming Budget 2026, scheduled to be tabled on 10 October.

In July, Minister Datuk Ewon Benedick, Entrepreneur Development and Cooperatives had also said his ministry would spearhead efforts to scale up micro, small and medium enterprises (MSMEs) while empowering the third sector under the 13MP.

ALSO READ: Malaysia to fully utilise RM227bn allocation for economic transformation under 13th Malaysia Plan