COOPERATIVES with poor repayment records will be barred from receiving new financing, says Datuk Mohamad Alamin.
“Any outstanding loans will be recovered and legal action will be taken where necessary,” said the Deputy Entrepreneur and Cooperatives Development Minister in reply to a question from Roslan Hashim (PN-Kulim Bandar Baharu) on whether the ministry plans to stop financing cooperatives that fail to perform despite repeated assistance.
Mohamad said that in 2025, a total of 66 cooperatives received financing under the Malaysia Cooperative Societies Commission’s Revolving Capital Fund, totalling RM75.32mil.
He said that 78 cooperatives benefited from business development assistance grants amounting to RM8.59mil, aimed at supporting working capital and the purchase of business assets.
To a question from Mohd Kurniawan Naim Moktar (BN-Kinabatangan) on why some cooperatives fail, Mohamad said it is often due to a lack of shared objectives among members, and a lack of creativity on the management’s part in exploring new opportunities.
