KUSKOP plans to reduce share capital to join Federasi Koperasi Pertanian

KUALA LUMPUR, March 1 (Bernama) -- The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) plans to reduce the amount of share capital or cooperative fees, from RM50,000 to RM5,000, to encourage more agricultural cooperatives to join the Federasi Koperasi Pertanian dan Industri Asas Tani Malaysia Bhd.

Its Deputy Minister, Saraswathy Kandasamy, said that the participation of more cooperatives in the federation would enable the country's agri-food sector to be strengthened, thus addressing the national food security issue.

“By combining more cooperatives in the federation, the agri-food sector will be further strengthened, and they can form a block, which can guarantee the purchase of grains or materials, to reduce the cost of finance," she said when replying to a supplementary question from Datuk Muslimin Yahaya (PN-Sungai Besar) at the Dewan Rakyat sitting today.

 Meanwhile, Saraswathy said KUSKOP, through the Cooperative Commission of Malaysia (SKM), is always committed to ensuring food security, through the participation of cooperatives in the agro-food sector.

As of Dec 31 last year, a total of 172 cooperatives were specifically involved in the agro-food sector, which includes livestock, fisheries, crops, and the supply of agricultural inputs,” he said.

Saraswathy said that eligible cooperatives can apply for funding of up to RM3 million, to develop or expand projects related to primary agro-food production, food processing or manufacturing, or other downstream food activities.

“In addition, the government is providing development assistance of up to RM300,000 to eligible cooperatives, to strengthen and expand cooperative business activities, including agricultural activities,” she added.

-- BERNAMA