GEORGE TOWN, Feb 2 — The Penang government has approved an allocation of RM300,000 to support the state’s cooperative development agenda.
Deputy Chief Minister I, Datuk Ahmad Zakiyuddin Abd Rahman, said the state government realised the challenges faced by the cooperatives, namely the lack of members and insufficient business capital, in addition to the challenges posed by the Covid-19 pandemic.
“The grant will be managed by the state Malaysian Cooperatives Commission (SKM) and each application will be reviewed by the Selection Committee involving the Deputy Chief Minister I Office, Penang SKM and State Economic Planning Division,” he said in a news conference on the launching of “Penang2030 Coop Grant” here, today.
He said registered cooperatives in the state with no audited account arrears, have held annual general meetings and have viable economic projects are eligible to apply for the grant.
The maximum grant amount for each cooperative is RM10,000 or RM15,000, depending on project or business types, while the grant scope includes infrastructure development, machines and revolving capital.
Meanwhile, Penang SKM director Zakaria Mat Jusoh said currently, there were 746 registered cooperatives in the state with 172,000 members.
“The annual income of cooperatives in the state has dropped by 56 per cent to RM162.6 million in 2020 compared to RM289 million in 2019 due to no economic activities, especially during the pandemic period,” he said, adding that 30 per cent or 246 cooperatives in Penang were categorised as inactive.
However, he said Penang SKM was committed to assisting cooperatives the state to increase their membership.
This includes the launching of Koperasi Rakyat Pulau Pinang Bhd, a special cooperative for Penang residents, in September last year with a target of 500,000 members over the next two years. — Bernama
