By Zaki Salleh
BUTTERWORTH: The government has allocated RM254 million to the Malaysian Cooperative Commission (SKM), marking the largest allocation in the history of the country’s cooperative movement since 1922.
Of the total amount, RM226 million will be channelled through the SKM Revolving Capital Fund to strengthen and empower cooperatives.
Minister of Entrepreneur Development and Cooperatives, Steven Sim Chee Keong, said the ministry is also drafting a new Cooperatives Act to replace the Cooperatives Act 1993.
He said the new legislation aims to facilitate cooperative business operations and investments while targeting the cooperative sector’s revenue to surpass RM100 billion by 2030.
“The country’s cooperative sector continues to record encouraging growth, with business turnover increasing by nearly 20 per cent, from RM68 billion in 2024 to almost RM82 billion in 2025.
“This achievement proves that the cooperative movement continues to grow as one of the country’s key economic drivers, supported by the government’s continuous efforts,” he said.
He was speaking at the opening ceremony of the National Cooperative Day 2026 celebration held at PICCA @ Butterworth Arena today.
Also present was Malaysian Cooperative Commission (SKM) Chairman, Lieutenant General (Rtd) Datuk Ahmad Norihan Jalal.
Steven Sim added that the positive momentum was also driven by the expansion of cooperatives nationwide, with 138 micro cooperatives successfully upgraded to small cooperatives.
“In addition, 33 small cooperatives have grown into large cooperatives, while 16 medium-sized cooperatives have advanced into the large cluster cooperative category,” he said.
To further strengthen the sector, Steven announced two major reforms to cooperative Ar-Rahnu services, which will take effect from September 2026.
These include the abolition of the 2.5 per cent fee and charge imposed on the pledged asset (marhun), as well as the standardisation of Ar-Rahnu profit rates to between one and two per cent.
Another initiative will allow cooperatives to conduct auctions of pledged items through a tender process as an alternative to public auctions and e-auctions.
The move is expected to enhance transparency, reduce costs, and create a more flexible auction process.
As of 31 December 2025, Malaysia had 16,468 registered cooperatives with nearly 7.3 million members. Their total share capital and membership fees amounted to RM18.6 billion, while total assets stood at RM186.7 billion.
