Malaysia will share savings with backers of investments that benefit marginalized communities.
The government’s RM3 million ($675,000) Social Outcomes Fund is intended to catalyze impact investing in Malaysia by reimbursing investors whose investments measurably help marginalized communities.
To be eligible for payouts, impact investments from philanthropic and commercial investors must generate savings for the government at least 1.5 times the size of the investment.
The pay-for-success funding “is not money to be given as grants but as a reimbursement to the impact investors based on the outcomes delivered,” said the fund’s manager, Datuk Mark Rozario, CEO of Agensi Inovasi Malaysia.
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Photo credit: THE STAR / IBRAHIM MOHTAR