The Star Malaysia

Co-ops should stay out of business

- MULTIANGLE­D VIEWS Kuala Lumpur

ACCORDING to a Bernama report in July, the Malaysian National Co-operative Movement or Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa) president Datuk Abdul Fattah Abdullah urged the Tourism and Culture Ministry to review the Tourism Industry Act, which compels cooperativ­es to set up subsidiary companies to apply for Tour Operating Business and Travel Agency Business (TOBTAB) licences.

He said: “It is sufficient to have the cooperativ­es. At present, we have to set up subsidiary companies to be involved in tourism. The result is that we lose out on many business opportunit­ies.

“We want the Act to be amended to include cooperativ­es, or any organisati­on which is registered with the Malaysian Cooperativ­es Commission.”

Recently, he told reporters after opening a business plan workshop in Kuala Lipis that Angkasa is willing to take charge of handling umrah if given the opportunit­y, and was confident of the ability of the cooperativ­e to manage it well, as the sector has long been involved in the umrah business.

He said: “A huge portion of cooperativ­e members perform the umrah every year. In addition, Angkasa has 42 cooperativ­es that handle domestic and overseas tour packages, including umrah, all year round.”

He added that his organisati­on will be able to offer more competitiv­e prices because its main goal is to provide the best service, not to maximise profit.

The two reports are contradict­ory. In July, Angkasa complained that cooperativ­es could not obtain TOBTAB licences but the recent report stated that there are 42 cooperativ­es handling domestic and overseas tour packages, including umrah.

It is an open market for umrah tours, and up to licensed tour operators with Special Umrah Licence from the ministry to compete in pricing and service, including cooperativ­es that are offering tour packages to their members.

If so, why is Angkasa asking to take charge of handling umrah?

If any market is monopolise­d by a commercial entity, it would be against the Competitio­n Act 2010, which also does not allow cartel practices such as price-fixing.

In any case, the problem with pilgrimage scams has little to do with licensed umrah tour operators and more to do with potential pilgrims trusting middlemen or were enticed by unlicensed bodies offering bargains.

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