KUSKOP IN THE PROCESS OF DRAFTING NEW ACT TO EMPOWER LOCAL COOPERATIVES – EWON

SHAH ALAM, April 22 (Bernama) -- Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick says his ministry is currently in the process of drafting a new act to replace the Cooperative Societies Act 1993 (Act 502).

He said the Cabinet paper on the matter was presented to the Cabinet, which agreed to it in principle on Jan 8.

“The main objective of drafting the new cooperative act is to strengthen the cooperative movement by liberalising regulations and empowering the Malaysia Cooperative Societies Commission (SKM) as the regulatory body for cooperatives.

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“With this new act, the Ministry of Entrepreneur Development and Cooperatives (KUSKOP) is optimistic it will create responsive and dynamic cooperatives, facilitate business activities of cooperatives, and improve governance,” he said.

He was speaking at the meeting of the National Cooperative Consultative Council (MPKK) here today. The meeting served as an engagement session with cooperative members to gather input and feedback for the improvement of the draft bill.

According to Ewon, the decision to draft the act was based on the findings of the ministry’s 2023 study entitled ‘Study on Related Laws and Constraints on Cooperatives as Business Entities within the Legal Context’.

He said the study also revealed that existing laws restricted cooperatives from venturing into certain business areas, including regulations requiring cooperatives to establish subsidiaries under the Companies Commission of Malaysia (SSM).

He noted that the Tourism Industry Act 1992 (Act 482), under the Ministry of Tourism, Arts and Culture, only permitted companies registered under the Companies Act 2016 to be licensed to operate travel and tour agency businesses.

“Additionally, the Private Healthcare Facilities and Services Act 1998 (Act 586), under the Ministry of Health, states that only companies registered under the Companies Act 2016 can apply to operate private healthcare facilities and services.

“Therefore, cooperatives intending to set up dialysis centres must establish subsidiaries to undertake such activities,” he said.

Ewon said briefings on the matter had been conducted through meetings with the Special Select Committee on Domestic Trade, Entrepreneurship, Cost of Living and Agriculture, as well as presentations to Members of Parliament, with both sessions receiving positive feedback.

He said that so far, a total of ten engagement sessions involving 295 cooperatives and 47 government agencies had been held to gather views and feedback on the proposed new cooperative act.

“Next, an engagement session with members of the Sabah State Administration and Government will be held on May 2, 2025,” he added.

-- BERNAMA