Medac allocates RM230 mln for new Cooperative Commission revolving capital fund products

PUTRAJAYA: The Ministry of Entrepreneur Development and Cooperatives (Medac) through the Cooperative Commission of Malaysia (SKM) has allocated RM230 million for the implementation of new products under the Revolving Capital Fund of SKM (TMPSKM).

Its Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar said a total of 14,629 cooperatives with a membership of almost 6.5 million people would benefit from the implementation of these new products.

He said the five proposed products to promote the TMPSKM financing are Micro Co-op Financing (MicCoopFi-1), Lestari Financing (LesFi-1), Startup Financing (SuFi-1), Best 100 Financing (Best100Fi-1) and Good Paymaster Financing (GPMFi-1).

“The launch of these products is expected to help cooperatives in financing viable projects from micro clusters to large clusters to benefit from the TMPSKM funds provided by the government.

“Medac is always concerned in ensuring that the country’s cooperative sector ecosystem is always consistent and at the same time helps alleviate the financial burden of the affected cooperatives,” he said in a media statement here today.

Wan Junaidi said the five products were introduced in conjunction with the National Cooperatives Day celebration themed Rebuild Better Together and the implementation of these new products was according to different cooperative targets.

“MicCoopFi-1 financing provides easy financing facilities to cooperatives for micro clusters (annual turnover of less than RM200,000) to 50 cooperatives to carry out new activities or working capital for existing activities.

“Meanwhile, LesFi-1 financing provides financing facilities in the form of revolving capital to 106 selected cooperatives under the Program Desa Lestari under the Ministry of Rural Development,” he said.

SuFi-1 offers financing facilities to 936 new cooperatives to fund potential or viable projects; Best100Fi-1 provides financing facilities or incentives to the 100 Best Cooperatives of 2020; and GPMFi-1 aims to provide financing incentives to cooperatives that have a good financing record with SKM, he said. – Bernama