Kuala Lumpur: Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick has announced that his ministry is in the process of drafting a new act to replace the Cooperative Societies Act 1993 (Act 502). The Cabinet paper on this initiative was presented and agreed upon in principle on January 8.
According to BERNAMA News Agency, the main aim of the new cooperative act is to strengthen the cooperative movement by liberalizing regulations and empowering the Malaysia Cooperative Societies Commission (SKM) as the regulatory body. The Ministry of Entrepreneur Development and Cooperatives (KUSKOP) anticipates that this act will create more responsive and dynamic cooperatives, facilitate business activities, and improve governance.
Ewon made these remarks at a meeting of the National Cooperative Consultative Council (MPKK), which served as a platform to engage cooperative members for input and feedback on the draft bill. The decision to draft the act stems from a 2023 study by the ministry titled ‘Study on Related Laws and Constraints on Cooperatives as Business Entities within the Legal Context.’
The study highlighted that current laws restrict cooperatives from entering certain business sectors. For instance, regulations require cooperatives to establish subsidiaries under the Companies Commission of Malaysia (SSM) to operate. Additionally, the Tourism Industry Act 1992 and the Private Healthcare Facilities and Services Act 1998 mandate that only companies registered under the Companies Act 2016 can operate travel, tour agency businesses, and private healthcare facilities, respectively.
Ewon stated that briefings on the matter have been conducted with the Special Select Committee on Domestic Trade, Entrepreneurship, Cost of Living, and Agriculture, along with presentations to Members of Parliament, all of which received positive feedback. To date, ten engagement sessions involving 295 cooperatives and 47 government agencies have been conducted to gather input on the proposed act.
He also mentioned that an engagement session with members of the Sabah State Administration and Government is scheduled for May 2, 2025.