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Ministry channeled RM85.9 million to aid cooperatives as of April

Publish date: Sat, 15 Jun 2024, 07:54 PM

Ministry channeled RM85.9 million to aid cooperative entrepreneurs as of April

REMBAU: The Entrepreneur Development and Cooperatives Ministry has approved financing under the Revolving Capital Fund (RCF) amounting to RM85.9 million as of April for cooperatives engaged in large-scale product operations.

Its deputy minister Datuk R. Ramanan said the funds through the Malaysia Cooperatives Societies Commission (MCSC) aimed to help cooperatives to implement advanced projects.

He said the ministry would continue to help cooperatives and small and medium enterprises (SMEs) in further developing their businesses.

"To encourage cooperative development, the ministry through SKM offers financing through the TMP with a maximum secured financing amount of RM30 million and unsecured financing up to RM200,000.

"As of April, the MCSC has approved RM85.9 million in financing from this fund for cooperatives engaged in large-scale product operations.

"This initiative was established to aid and facilitate cooperatives in implementing advanced projects," he told reporters after launching the Taman Nesa Delima Housing Project key handover ceremony in Rantau today.

Present were MCSC chief executive officer Rusli Jaafar and Koperasi Nesa chairman Datuk P. Shashi Kumar.

Ramanan said as of May 31, there are more than 16,000 registered cooperatives nationwide, with a total membership exceeding seven million people.

He said several cooperatives are inactive due to management and financial issues, but the MCSC is actively working to assist in their recovery.

"The cooperative movement contributes to the gross domestic product (GDP) of the country. It has the potential to continue growing to meet the economic and social demands of the people, including addressing issues related to the cost of living, inflation, and food security among others.

"Therefore, cooperatives also need to explore new business models based on current scenarios to ensure continuous growth of cooperative earnings," he said.

Meanwhile, Ramanan said the ministry plans to hold the Indian Community Cooperative Congress this year on a date which has yet to be determined.

"The congress aims to discuss issues, challenges, and the direction of the 419 Indian community cooperatives currently, in efforts to further enhance their performance and achievements," he said.

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