Social Return on Investment (SROI) for government flood recovery project in Kuala Krai, Kelantan

Abstract

Abstract In Malaysia, almost everyone agrees that flood recovery projects are perceived to improve the lives of communities and generate social impacts. However, there is insufficient evidence to support the case and there hasn’t been any common agreement about what that return is, or how it might be measured. In this regard, Social Return on Investment (SROI) has the ability to present a clear and concise message about the government’s project impacts by assessing social, economic and environmental values. Using the analysis of a specific case study as a guiding thread, this paper shows how the application of SROI methodology allows one to know in depth the social added value that the project brings and the changes experienced by the key stakeholders that interact with it. The authors carried out a step-by-step guide to implementing SROI on the government flood recovery project named “New Permanent Housing” (Rumah Kekal Baharu) RKB project in Kg. Telekong, Kuala Krai, Kelantan. This analysis assesses the social value generated by the intervention by combining the use of qualitative and quantitative data gathered and analyzing it. The results show that the RKB project in Kg. Telekong created an SROI ratio of 1:1.27. This means that every RM 1 spent on the project yielded a social value of RM 1.27. Based on the results, this study suggests that investment in the RKB project generates a positive return. The current study also revealed that the SROI methodology is appropriate to be adopted in an attempt to offer a structured and systematic basis for revealing and quantifying the social value that are often excluded from the discussion. The SROI method has just recently been used in the area of disaster management filed, and thus, further study is needed to promote its potential for policy-making bodies in the field.