Over 400 credit co-ops affected by pandemic - Angkasa

SEREMBAN, Nov 28 (Bernama) -- Over 400 out of the 600 credit cooperatives nationwide that are registered under the Cooperative Commission of Malaysia (SKM) have been affected by the COVID-19 pandemic since March.

Angkatan Koperasi Kebangsaan Malaysia Berhad (Angkasa) president Datuk Abdul Fattah Abdullah said the situation had caused the cooperatives’ turnover to decline about 30 per cent following the implementation of the automatic six-month loan moratorium, which ended on Sept 30.

He said the cooperatives’ incomes were affected during the six months as borrowers did not repay their instalments.

“For instance, we (cooperatives) should be able to earn RM1.2 billion per month, but because the moratorium was implemented from April, we could only collect loans amounting to RM300 million per month,” he told reporters after handing over contributions in conjunction with the Angkasa CoopCare Programme, here, today. 

However, he said the cooperative sector was still relevant due to its ability to change its business strategies accordingly, compared to the incorporation sector, as the management and policy of the cooperatives are determined by their members.

Abdul Fattah said Angkasa would continue to be committed in its effort to achieve its RM100 billion contribution to the country’s Gross Domestic Product by 2030.

“According to SKM statistics, as of Dec 31 last year, the cooperative movement had achieved a turnover of RM45.8 billion, (as such) it is not something impossible, provided the ecosystem for cooperatives to do business is good,” he said.

He said cooperatives must be recognised in the small and medium Industries category so that funds and assistance allocated by the government could also be enjoyed by cooperatives.

Earlier, Abdul Fattah handed over donations to 70 cooperative members and Kampung Kuala Sawah residents, near here, who were affected by floods recently.

He also urged all 14,625 cooperatives nationwide, especially the community-based ones, to actively provide aids to those in need.

-- BERNAMA