Malaysia in the process of reviewing its Co-operative Law
The Malaysian Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK) announced its plans to review the Co-operative Act, 1993 (Amendment 2007 – Act 502) to enhance the role of co-operatives in the national economy. Professionalism and image building of co-operatives were cited as chief reasons for this review by Minister, Datuk Seri Hamzah Zainuddin. Interestingly, the Minister was quoted saying at the second national co-operatives consultative council meeting late last year “we want to ensure that when they (people) set up a co-operative, they understand why it is set up and the co-operative must be set up only in accordance with their (members’) master plan. We want co-operatives to be set up in line with the needs of the local community”. Appointment of government secretaries accredited by the Malaysian Co-operatives Commission, corporate governance, check on the tenure of board members, co-operative mergers, and tightening the criteria for co-operative credit, were items that are expected to be reviewed in the amendment drive. 90% of the Act will be amended by June 2017 and this will be aimed at consolidation of the co-operative finance sector. During the launch of the development plan for the co-operative financial services sector, in January 2017, the minister proposed to reduce the number of co-operatives by merging smaller coops in the interest of the sustainability of the sector.
