A Memorandum of Understanding between the Economy Ministry and the Ministry for Family and Social Solidarity in anticipation of the Social Enterprises Act has been signed.

The Act will help develop the social enterprises sector, and would boost and give the opportunity to new business models as well as to those disadvantaged persons who they will serve and assist, a statement read.

"Government recognised the importance of these social enterprises, as well as organisations who are important contributors to social and economic development. For many years, social entrepreneurs worked to rethink the way social problems such as poverty, social exclusion and unemployment could be addressed".

"While existing organisations already have the necessary characteristics that are typical in social enterprises, there is still no legal structure that would allow them to identify themselves in a regulatory framework.

Economy Minister Cardona said this act, will allow Malta to develop its own model for social enterprises, on the same level as those within the EU.

Family Minister Farrugia said that through this Act, NGOs who work in the social sector and who register as social enterprises will begin operate in a more transparent manner.