KUALA LUMPUR, Feb 20 — It is timely to form a Charity Commission to improve the efficiency, transparency and good governance of the social finance sector, said Deputy Prime Minister Datuk Seri Dr Wan Azizah Wan Ismail.
She said the establishment of such a commission would also prevent incidents of monies donated to charitable causes not reaching their intended recipients.
“This will also allow for a transparent mechanism in determining the deductible amount for administrative purposes.
“More importantly, it will also establish best practices in the social finance sector,” she said in her speech at the Institute for Democracy and Economic Affairs (IDEAS) 10th anniversary dinner here tonight.
Also present was IDEAS’ founding president Tunku Zain Al-’Abidin Tuanku Muhriz.
Dr Wan Azizah said the government was also looking at improving the redistribution of wealth process to make it more effective.
She said the disparity between the rich and the poor can be reduced through the social finance sector.
“Social finance such as foundations, charity organisations and micro-financing outfits for the poor should be the third force in growing the economy with a positive impact on wealth distribution,” she said.
Explaining further, Dr Wan Azizah said the government also will look at redefining poverty.
“Apart from only looking at a household’s income, the new definition will also take into account the household’s per capita income,” she said.
She said the government was also looking into categorising the different segments within the B40 category.
“If we use the entire class of B40 as a whole for our redistribution strategy, it means the same strategy will be used for three major groups within the category, that is the destitute, the poor, as well as those who can fulfill their basic needs.
“In actual fact, all these three groups require different redistribution strategies,” she said. — Bernama
