KUALA LUMPUR, March 1 — The amendment of the Cooperatives Act 1993 (Act 502) to the Cooperatives (Amendment) Act 2021 (A1634) has come into force starting today.
Entrepreneur Development and Cooperatives Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said the amendment is consistent with the current government policy to make the current operation of the cooperative business easier and to ensure the registered cooperative is of good quality.
“The amendment of this act is made to coincide with the target of cooperative revenue contribution to the national economy amounting to RM100 billion by 2030.
“Indirectly, the cooperative sector is seen as the main instrument to boost entrepreneurship among low- income households or B40,” he added.
Among major amendments are related to the conditions for registration of basic cooperatives that have been simplified where the number of individuals for the purpose of registration has been reduced from 50 people to 20 people only.
The amendment is aimed at encouraging the B40 group, especially, to engage in business activities through cooperatives as well as to socialise the cooperative movement based on target groups such as youths, women, communities, or indigenous communities such as indigenous people.
The amendments will also allow or facilitate the cooperative to receive financing from any financial institution under supervision of Bank Negara Malaysia and the cooperative determined by the Malaysian Cooperative Societies Commission (SKM) without the need to obtain SKM approval in advance as before.
Meanwhile, this Act A1634 will apply to all cooperatives registered under SKM and the amendment was passed by the Dewan Rakyat on December 17, 2020 and the Dewan Negara on December 29, 2020.
— Bernama
