KUALA LUMPUR, Feb 11 — Cooperatives that fail to demonstrate good repayment performance will no longer be eligible for new financing, Deputy Entrepreneur and Cooperatives Development Minister Datuk Mohamad Alamin said today.
The policy is aimed at ensuring public funds channelled to cooperatives are used prudently, with integrity, and to maximise benefits for members.
“The ministry will pursue cooperatives with any outstanding repayments, including through legal action where necessary,” Mohamad said during Minister’s Question Time in the Dewan Rakyat.
He said financing is provided through the Malaysia Cooperative Societies Commission’s (SKM) Revolving Capital Fund and business development grants, supporting working capital, asset acquisition, machinery, vehicles, and operational capacity.
In 2025, 66 cooperatives received RM75.32 million in financing, while 78 others received RM8.59 million in development grants.
“SKM sets strict criteria, including adherence to the Cooperative Societies Act 1993 and repayment capability.
“Cooperatives will be continuously evaluated, and those facing challenges will receive advisory services, rescheduled financing, restructuring, and management training to strengthen governance and operations,” he said.
