COOPERATIVES want to spur economic growth but are held back by red tape, said their national body.

Onerous policies and laws are also restricting the growth of cooperatives nationwide, said the Malaysia National Co-operative Movement (Angkasa).

Its president, Abdul Fattah Abdullah, said the 9,646 cooperatives under the body want to contribute to growth but are held back by red tape.

“We hope the government can review policies and laws that are not friendly to cooperatives, restricting (their growth) so that we can better play our role in the economy. 

“Don’t forget cooperatives also play a social role. We also unite the people. We accept anyone as members, regardless of race and religion,” Fattah said after meeting with the Council of Eminent Persons at Ilham Tower in Kuala Lumpur today.

There are some 28 guidelines that co-operatives must adhere to and the approval process in the Cooperative Commission Malaysia (SKM) is slow because of a lack of human resources.

“Many cooperatives want to do business. (But) say if a cooperative wants to set up a healthcare business, we have to get approval from our members in the AGM, then from SKM, then only we can register with the SSM (Companies Commission Malaysia) and get a licence from the Health Ministry.

“The process takes a long time,” said Fattah.

A group of 20 civil society groups urged the government to restructure the cooperative sector recently to raise its economic performance.

The group claimed the sector controls RM135.8 billion worth of assets but only contributes to 1% of gross domestic product. – July 16, 2018.