KUALA LUMPUR: The Covid-19 movement control order (MCO) resulted in some 17% of cooperatives nationwide halting their operations, says Entrepreneur Development and Cooperatives Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar.
“The effect of the MCO had affected cooperatives where only 39% are still operational while 17% of cooperatives saw business stopped.
“Another 42% of cooperatives faced cash liquidity problems owing to a reduction in revolving funds, especially cooperatives involved in the tourism and healthcare sectors," he said when answering a question by Datuk Seri Hasan Arifin (BN-Rompin) in the Dewan Rakyat on Wednesday (Dec 2).
In light of this, Wan Junaidi said the ministry has implemented a cooperative and entrepreneur recovery plan to ensure that cooperatives regain their momentum and recover by next year.
He added that this includes simplifying the application process for financial aid without the need for a deposit under the Cooperative Commission revolving fund.
“As of Nov 16, the fund has disbursed RM5.11mil to 104 cooperatives," he said.
He also said the government had tabled the Cooperatives (Amendment) Bill 2020 in the Dewan Rakyat in August for the first reading to amend the Cooperative Societies Act 1993.
He said the amendments will see comprehensive changes to the law to make it easier for cooperatives to be set up and managed.
Earlier, Wan Junaidi informed the House that cooperatives generated RM45.7bil in income last year and recorded an average income growth of 3.97% between 2014 and 2019.
There are about 14,417 cooperatives nationwide with some six million members.
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