KUALA LUMPUR (Sept 4): The government is set to strengthen Malaysia’s third sector — comprising groups such as non-governmental organisations, cooperatives and social enterprises — to help the country transition into a high-value, high-growth economy, according to Economy Ministry secretary general Datuk Nor Azmie Diron.
There is urgency in strengthening this third sector, recognised as a key component under the 13th Malaysia Plan (13MP), as the government recognises that it cannot create more agencies or departments to support the shift towards the value-creation-based economy it aspires to achieve, he said.
“Even now, we already have a bloated civil service,” Nor Azmie said during his presentation at the MIER Brown Bag Talks Series, titled “The 13th Malaysia Plan: Policy Empowerment to Sustain Economic Growth”.
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, Malaysia’s development roadmap for 2026-2030, places a strong emphasis on the role of this sector in addressing the nation’s socio-economic challenges and contributing to national development.
It also outlines the creation of a social economy policy, along with the review and streamlining of existing policies and regulations to improve the scale and competitiveness of third-sector players, to enable them to play a more significant role in the country’s development.
“This third sector will be used as an engine to support initiatives aiming to improve the rakyat’s standard of living,” Nor Azmie said.
Specific government incentives to support the third sector are expected to be announced in the upcoming Budget 2026, which is scheduled to be tabled on Oct 10.
Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick said in end-July that his ministry would spearhead efforts to scale up micro, small and medium enterprises or MSMEs as well as empower the third sector under the 13MP.
