KUALA LUMPUR: The amendment of the Cooperatives Act 1993 (Act 502) to the Cooperative Act (Amendment) 2021 (A1634) will further strengthen the position of cooperatives as institutions which play a major role in strengthening the society’s socio-economy.
Angkatan Koperasi Kebangsaan Malaysia Bhd (Angkasa) president Datuk Abdul Fattah Abdullah (pix) said the amendment was timely to increase Malaysians’ involvement in cooperative entrepreneurship, as the Covid-19 pandemic has affected many people’s incomes.
“This amendment provides an opportunity for the community or for those who want to start a business to jointly raise the capital needed through the establishment of cooperatives,“ he said in a statement today.
Abdul Fattah said the amendment to the basic conditions for the registration of cooperatives, which now allows for a cooperative to be set up with just 20 members instead of 50 previously was a proactive step to boost cooperatives’ growth and involvement in various economic sectors.
According to him, the minimum number of members can still be further reduced to give youths the opportunity to start a business, because the minimum number is still high when compared to other countries.
The amendments — which come into force on March 1 — involves nine provisions in Act 502 and applies to all cooperatives registered with the Malaysia Co-operative Societies Commission of Malaysia (SKM).
Abdul Fattah welcomes the readiness of any financial institutions under Bank Negara Malaysia in providing financing facilities to cooperatives determined by SKM without having to obtain the commission’s approval in advance like before.
“This is a positive step that can help cooperatives to revive the business operations affected by the pandemic and enables cooperatives to move more effectively in expanding their business,“ he said.
The amendment was passed by the Dewan Rakyat on Dec 17, 2020. and the Dewan Negara on Dec 29, 2020. — Bernama