Social Finance

So Fi - intro

Social finance is envisioned as an enabler of social development in Malaysia, complementing public sector finance and commercially-driven financial solutions to promote greater social resilience. The unique qualities of social finance:

(i) flexibility of funding instruments;
(ii) incorporation of structured training in business and financial management; and
(iii) embedded impact monitoring mechanisms

can advance financial inclusion whilst addressing constraints typically associated with traditional finance.

Two related initiatives: iTEKAD | myWakaf

iTEKAD 2026 brief

iTEKAD is an umbrella social finance programme that has been established by Bank Negara Malaysia, aimed to help low-income microentrepreneurs and vulnerable segments in uplifting their socioeconomic status. Each iTEKAD programme is coordinated by respective financial institutions, in collaboration with implementation partners. It leverages social finance instruments, such as CSR funds, zakat, donations, and impact investments to enable beneficiaries to generate sustainable income sources and improve financial resilience.

For more information regarding sub-programmes under the iTEKAD initiative, please visit the following webpages:

iTEKAD Entrepreneurship supports low-income microentrepreneurs to start and expand their businesses by strengthening their financial management and business acumen through provision of seed capital, structured training and access to microfinancing

iTEKAD Protection provides low-income microentrepreneurs and their businesses essential financial protection against risks events such as accidents and natural disasters

iTEKAD Employment provides individuals from vulnerable communities with structured capacity building, employability support and financial management guidance

iTEKAD Grant

As announced under Belanjawan 2026, a grant of RM35 million will be allocated towards the three iTEKAD sub-programmes to 1) augment seed capital for iTEKAD microentrepreneurs; 2) support affordable protection programme for target segments; and 3) encourage employability and upward mobility of vulnerable communities.

The grant will be matched with social finance funds e.g. CSR funds, zakat, donations, and impact investments. These social finance funds can be raised either from financial institutions’ internal funding sources or through contributions from implementation partners and other external parties.

FAQ-itekad-overall

Frequently Asked Questions on iTEKAD

General Information

1. Is iTEKAD a one-off initiative?

No. iTEKAD is meant to be a sustainable initiative that can also contribute to the nation building and extend its outreach to larger groups of beneficiaries. This is possible with stronger partnership with wider network of implementation partners in building higher capacity of the programmes nationwide.

2. Is iTEKAD only meant for Muslim participants?

No, iTEKAD is open to all Malaysians, subject to the dynamics of each programme. For example, using a neutral social finance funding such as CSR fund would enable the programme to be offered to participants regardless of their faith and belief.

3. Can participants apply directly to the programme, just like how they plan to open a bank account or loan i.e. open application/walk-in?

At the moment, most iTEKAD programmes are offered as a closed-door initiative. iTEKAD participating financial institutions and implementation partners will source and assess eligible participants. As the programme continues to expand, we anticipate opportunities for wider selection of participants, including from walk-in applications.

Collaboration

4. Do all social finance programmes have to be branded as iTEKAD?

No, financial institutions may have their own social finance programmes besides iTEKAD. However, we would encourage more financial institutions to be recognised under the iTEKAD brand. Participating financial institutions would receive several advantages, such as invitation to networking events with potential collaborators or implementation partners, greater exposure on other financial institutions’ initiatives, and opportunity to tap on government grant, among others.

5. Is iTEKAD only meant to be offered by Islamic banks?

No, iTEKAD is not limited to Islamic banks and may be offered by financial institutions currently regulated by Bank Negara Malaysia.

6. Who can iTEKAD participating financial institutions collaborate with in implementing iTEKAD programmes?

iTEKAD is very flexible in which participating financial institutions may collaborate with implementation partners such as corporates, universities, NGOs, State Islamic Religious Councils (SIRCs) – for both existing and new programmes. This can be in a form of content, mode and delivery of programme, funding, structured training, participant selection, etc.

7. Can financial institutions coordinate more than one iTEKAD programme and collaborate with multiple implementation partners?

Yes. Participating financial institutions could have various programmes registered under the iTEKAD umbrella and collaborate with multiple implementation partners, at any particular time.

8. Can implementation partners assist in determining the target segment of the programme?

Yes, the target segment under each iTEKAD programme can be determined together by iTEKAD participating financial institutions and their implementation partners.

9. Can implementation partners leverage on existing programmes in targeting specific groups of participants?

Yes. This is subject to arrangement with the respective PFIs, especially for the new cohort or batch of participants. iTEKAD is intended to assist the unserved and underserved segment of the society, particularly from the low-income segment.

10. I am a programme implementation partner. Do I need to obtain Bank Negara Malaysia’s approval for the iTEKAD programme?

No. Implementation partners are not required to obtain approval from Bank Negara Malaysia. The participating financial institution will only need to notify BNM on the proposed iTEKAD programme prior to its roll-out.

11. As an implementation partner, how do I tap on the government grant?

The government grant can only be applied by the respective iTEKAD participating financial institutions. The amount of grant applied has to be matched with social finance funding, including contributions from the financial institutions and implementation partners of the respective iTEKAD programmes.

12. I have available funds (e.g. zakat wakalah, CSR funds, donations, etc) that I would like to channel towards iTEKAD. How can I do so?

Such contributions can be channelled to participating financial institutions towards iTEKAD programmes. You may reach out to the respective participating financial institutions to learn more on how you can contribute funds.

myWakaf brief

myWakaf

myWakaf is a waqf fund initiative established jointly by six Islamic banks under the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM). To facilitate transparency and convenience for the public to contribute cash waqf, myWakaf features a digital platform listing fundraising for dedicated socioeconomic projects. The fund is then channelled towards projects on economic empowerment, healthcare and education, as identified by participating financial institutions and State Islamic Religious Councils.

For further information, please visit myWakaf website

So Fi - shortcuts

"Social Finance" Box Article in FSBP 2022-2026

Financing Small & Medium Enterprises

Microfinance

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