National Cooperative Consultative Council Discusses Proposed New Cooperatives Act

SHAH ALAM, 22 April 2025 – The Minister of Entrepreneur and Cooperatives Development, Datuk Ewon Benedick, stated that the National Cooperative Consultative Council (MPKK) meeting discussed the proposal for a new Cooperatives Act.

He said the engagement session aimed to gather constructive input and feedback from council members to refine the Cooperatives Bill (RUU) currently being drafted.

He noted that prior to this, several briefing and presentation sessions on the proposed new act had been held, including with the Parliamentary Special Select Committee and Members of Parliament, who provided positive feedback.

"To date, KUSKOP and the Malaysia Cooperative Societies Commission (SKM) have conducted 10 engagement sessions involving 295 cooperatives and 47 government agencies to obtain views and feedback on the new Cooperatives Bill. Additionally, an engagement session with the Sabah Administration and Government Members is scheduled for 2 May," he said.

Ewon made these remarks during his speech at the 1/2025 National Cooperative Consultative Council (MPKK) Meeting held at the Anjung Seri Budiman Hall, Universiti Teknologi MARA (UiTM) Shah Alam, yesterday.

Ewon stated that the Ministry of Entrepreneur and Cooperatives Development (KUSKOP) is in the process of drafting a new cooperatives act to replace the Cooperatives Act 1993 (Act 502).

He explained that the drafting of this act aims to empower the national cooperative movement by liberalizing existing legislation and strengthening the role of the Malaysia Cooperative Societies Commission (SKM) as the primary regulatory body for cooperatives.

"With the drafting of this new cooperatives act, KUSKOP is optimistic that cooperatives will become more responsive, dynamic, and competitive. It is also expected to facilitate cooperative business operations and enhance governance standards," he said.

He added that the Memorandum to the Cabinet (MJM) regarding the Policy Framework for the Drafting of the New Cooperatives Act was presented and approved in principle by the Cabinet on 8 January 2025.

"The need to draft this new act takes into account the findings of two studies conducted by KUSKOP in 2023, namely the Study on Cooperative-Related Legislation and the Study on Constraints Faced by Cooperatives as Business Entities in the Context of Legislation. Both studies examined existing issues that need improvement to create a sustainable and viable business environment for the cooperative ecosystem, while empowering the parent body of the cooperative movement and its delivery system," he said.

Ewon noted that the study findings revealed that there are legislative provisions that restrict cooperatives from engaging in certain business activities.