BANGI: The Entrepreneur Development and Cooperatives Ministry through the Malaysia Cooperative Societies Commission will continue the reduced rate of the Statutory Reserve Fund compulsory contribution to 13 per cent until Nov 30, 2025.
Its minister Datuk Ewon Benedick said the reduction from 15 per cent, which was supposed to end on Dec 31 this year, would be continued to help cooperatives recover from the effects of the Covid-19 pandemic.
"This means that cooperatives can increase the potential of disposable income for their business activities with excess cash liquidity amounting to approximately RM20 million.
"This rate will return to the original contribution rate in phases as determined by the commission.
"It is hoped that this reduction in the compulsory contribution rate can provide relief to cooperatives in reviving their businesses and achieving greater growth," he said at the launch of the 2030 Cooperatives Policy Malaysia.
In his speech, Benedick also expressed hope that cooperatives would be considered for a tax incentive, similar to that being enjoyed by companies.
He said cooperatives had played an important role in helping the government increase the socio economy of the people, adding that his ministry remained committed to increasing awareness and understanding of cooperatives in the community.
As of Dec 31 last year, Benedick said there were 15,315 registered cooperatives with a membership of 7.31 million people, shares amounting to RM16.98 billion and a combined asset of RM159.61 billion.
"My ministry also hopes that the Jualan Madani Koperasi programme can be expanded to cooperatives throughout the country.
"If the Domestic Trade and Cost of Living Ministry has its Jualan Rahmah flagship programme with a large allocation, I hope my ministry can also be given a similar mandate to continue the Jualan Madani Koperasi programme."
The 2030 Cooperatives Policy Malaysia aims to make the cooperatives sector the main catalyst of Malaysia's socio-economic growth.
The four pillars of the policy include transforming cooperative support; increase understanding and appreciation of cooperative principles; increase the capacity and capability of cooperatives; and promote the cooperative sector as the main socio-economic development vehicle.
