COOPERATIVE MOVEMENT NEEDS TO PLAY A SIGNIFICANT ROLE THROUGH REAL ESTATE SECTOR - EWON

PUTRAJAYA, July 19 (Bernama) -- The cooperative movement in Malaysia needs to play a more significant role through the property development and construction sectors that can have a high impact, not only on its members but on the public.

Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedick said property development is not only focused on housing development but also "built to suit" development, that is buildings that will be used as hospitals, hotels, factories, warehouses, data centres and other profitable opportunities.

"I strongly encourage the cooperative movement to venture into the real estate sector because in addition to helping generate income, it can also help Malaysians own homes.

"The concept of a cooperative based on the principle of inclusivity and inclusiveness by creating profit through joint ownership activities is suitable to be applied in the current economic situation," he said at the National Cooperative Day Celebration, Federal Territory Level in 2024, here last night.

Also present was the chairman of the Cooperative Commission of Malaysia (SKM) Lieutenant General (Rtd) Datuk Ahmad Norihan Jalal.

Ewon said that in response to the government's efforts to encourage the cooperative sector to get involved in real estate development and construction, SKM has provided funding for the Cooperative  Commission of Malaysia Revolving Capital Fund, known as the '100 Best Cooperative Funding (Bestfi-100)'.

He said financing from the fund was offered specifically to cooperatives listed as the 100 best cooperatives, with up to RM30 million financing.

Ewon said that as of December 2023, there were a total of 1,171 registered cooperatives in the Federal Territory with a membership of 2.39 million members.

The cooperative's asset position as a whole amounts to RM21.65 billion and generates share capital or fees amounting to RM8.95 billion while revenue is RM5.67 billion.

"For me, those are big numbers and able to create a strong and sustainable business network.

"The asset value that is the backbone of the strength of the cooperative movement in this country should be used sustainably by being developed through a competitive and high-impact investment platform to give a boost to the gross domestic product contributed by the cooperative movement," he said.

At the event, Ewon also launched SKM's New Strategic Initiatives (NSI) of the Federal Territory, which is the Rumah Selangorku Project: Shorea Garden, which was developed by the Koperasi Sahabat Amanah Ikhtiar Malaysia Bhd.

The Rumah SelangorKu Shorea Garden project worth RM63.8 million is a joint venture development project between Koperasi Sahabat Bhd and the Selangor State Housing and Real Estate Board.

The development project, which will be developed on an area of ​​4.046 hectares (10 acres) in Puchong,  offers as many as 230 units at prices starting from RM275,000, are equipped with basic facilities such as two parking units, a community centre and a security control pondok.

"This project provides an opportunity for households whose income does not exceed RM14,500 and own a house either through a government or private project in Selangor," he said.

-- BERNAMA