Kuala lumpur: Cooperatives with unsatisfactory repayment performance will not be considered for new financing, the Dewan Rakyat was told today. Deputy Minister of Entrepreneur and Cooperatives Development Datuk Mohamad Alamin stated that the measure is aimed at ensuring public funds are managed with integrity and provide maximum benefits to all cooperative members. "Any outstanding financing payments will be recovered and appropriate legal action will be taken," he said during a question-and-answer session.

According to BERNAMA News Agency, Mohamad was responding to a question from Roslan Hashim (PN-Kulim Bandar Baharu) regarding the ministry's intentions about financing cooperatives that failed to perform despite repeated assistance. He disclosed that last year, a total of 66 cooperatives were approved for financing through the Malaysia Cooperative Societies Commission's Revolving Capital Fund (TMP-SKM), amounting to RM75.32 million.

Additionally, Mohamad mentioned that 78 cooperatives benefited from a business development assistance grant totaling RM8.59 million, which was provided to support their working capital needs and the purchase of business assets.

In response to a supplementary question from Mohd Kurniawan Naim Moktar (BN-Kinabatangan) about the factors leading to cooperative failure, Mohamad identified a lack of a common goal among members and the appointment of less professional cooperative board members as primary causes. These issues, he explained, have led to many cooperative businesses becoming unviable and remaining conventional, as their management lacks creativity in exploring new opportunities.

Mohamad further noted that some cooperatives were overly dependent on financial assistance and government incentives, without making serious efforts to expand their businesses.