ALOR SETAR: The Co-operative Societies Commission of Malaysia (SKM) has been urged to simplify aid applications and cut red tape to encourage more cooperatives to tap available business development funds.
Deputy Entrepreneur and Cooperatives Development Minister Datuk Mohamad Alamin said applications remained low despite various government initiatives to support cooperative business growth.
He said assistance, including business development grants and revolving capital financing, remained underutilised.
"We still have substantial funds available, but applications from cooperatives remain low.
"We want SKM to assist cooperatives at the grassroots level, guide them through the application process and reduce bureaucracy to make it easier for them to access funding," he told reporters after the 2026 Kedah Cooperative Movement Appreciation Ceremony here last night.
At the event, Mohamad Alamin also presented RM1.9 million in business development assistance to 15 cooperatives and RM200,000 in revolving capital financing to another cooperative to support business expansion.
The deputy minister said additional assistance was also available to cooperatives involved in food security and agriculture.
Mohamad Alamin also urged cooperatives to move beyond focusing solely on members' welfare and annual dividends towards sustainable, income-generating business models.
"Every cooperative must carefully plan its business activities based on its potential.
"They should avoid ventures without long-term prospects, which could ultimately create problems for the cooperative.
"We want cooperatives to become more viable business entities rather than merely organisations that look after their members' welfare," he said.
He also called on SKM to take a more proactive role in providing consultancy services, expertise and guidance to help cooperatives manage their businesses professionally and address problems at an early stage. — BERNAMA
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