Co-ops big contributors to GDP

Chua: Rm10bil revenue reflects their importance in socio-economic development

They should be involved in new and large-scale activities, expand their value chain, supply modern technology and explore new high value fields.

— DATUK SERI DR CHUA SOI LEK

KUALA LUMPUR: Cooperatives have contributed revenue totalling about Rm10bil to the nation’s gross domestic product, reflecting the increasing importance of their role, said MCA president Datuk Seri Dr Chua Soi Lek.

He said that unlike other businesses which were mainly profitdriven, cooperatives had proven that it was possible to pursue economic viability and social responsibility.

“For this reason, the United Nations General Assembly has ddeclared 2012 as the International Year of Cooperatives, highlighting the contribution of cooperatives to socio-economic development, particularly tparticularly their impact on poverty reduction, employment generation and social integration,” he said in his speech at the Koperasi Jayadiri Malaysia Bhd (Kojadi) annual general meeting here yesterday.

The text of his speech was read out by Federal Territory MCA chairman Datuk Seri Tan Chai Ho.

However, Dr Chua said Malaysian cooperatives had to move out of their comfort zone by transforming and innovating their business models in order to be on par with their counterparts in developed nations.

“They should be involved in new and large-scale activities, expand their value chain, supply modern technology and explore new high value fields,” he added.

Kojadi chairman Datuk Ng Peng Hay said the Government had channelled Rm4mil to Kojadi to finance the transformation and modernisation of 33 eligible sundry shops and 11 car and motorcycle workshops this year.

He said sundry shops taking part in the Retail Shop Transformation Programme (Tukar) could apply for a low interest loan of up to RM80,000, which could be used to renovate and upgrade their business premises, buy machinery and equipment, and for working capital.

“For the Automotive Workshop Programme (Atom), car workshop applicants may receive a low interest loan of not more than RM100,000 while those from motorcycle workshops get RM50,000,” he said.

“We welcome interested members to apply for these two projects so as to benefit from the opportunities offered by the National Key Economic Areas (NKEAS),” he said.

Ng said in its 2011 Annual Report for the financial year ended Dec 31, Kojadi had continued to perform well by registering a net profit of RM5,211,813.