The government is prepared to study the proposal to recognise cooperatives as an entity defined as small and medium enterprise (SME), Deputy Prime Minister Muhyiddin Yassin said.

He said this was to enable cooperatives to enjoy the same incentive packages and privileges given to SME.

"This is in line with the growth in cooperatives' economic activities based on small and medium-scale businesses that must be supported to increase their levels of competitiveness," he said when launching the National Cooperatives Day 2014 celebration at the Mini Stadium in Kuala Pilah today.

Also present were Domestic Trade, Cooperative and Consumerism Minister Hassan Malek and Negeri Sembilan Menteri Besar Mohamad Hassan.

The celebration, themed 'Strengthening Cooperation, Empowering Economy', was also attended by over 10,000 cooperative members nationwide.

Muhyiddin also called on Cooperative Commission of Malaysia (CCM) to carry out a thorough review on the National Cooperative Policy 2011-2012 in line with the dynamic market environment.

"The review must take into consideration all plans and implementation of cooperative development projects and programmes in a more aggressive, inclusive and comprehensive manners.

"This includes preparing sufficient budget and improving the existing incentive packages to give equal rooms and opportunities for cooperatives to venture into new business and improve existing value chain," he said.

The deputy prime minister also hoped that the CCM would carry out review on the Cooperatives Act 1993, as well as all the relevant regulations, to strengthen the legal framework so that it would be more comprehensive and effective.

"The CCM and other relevant agencies should work together in carrying out the review in support for the roles of cooperatives in commercial activity," he said, adding that the government also agreed to consider the CCM's application for an additional allocation of RM500 a year.

Merger of cooperatives

On the development of cooperative industry, Muhyiddin said the government was confident that the industry would continue playing its roles in contributing to the country's economy.

"As such, I hope the ministry will consider the menteri besar's suggestion to merge several cooperatives to form a corporate entity like the Felda Global Ventures Bhd.

"I'm confident that by merging the cooperatives, the collective number of members and amount of funds will generate 10 to 20 times the value added in the future," he said.

At the event, the deputy prime minister also presented 11 Cooperative Awards to selected recipients, including the Tokoh Koperasi Award to Raja Muhammad Alias Tengku Mohd Ali and the Perdana Award to Koperasi Bank Persatuan Malaysia Bhd.

Each recipient received RM50,000, certificate and a trophy.

Muhyiddin also witnessed the signing of three memoranda of understanding between the ministry and Koperasi Polis Diraja Malaysia Bhd, between the CCM and the Ministry of Agriculture and Agro-based Industry and between the CCM and the Ministry of International Trade and Industry.

- Bernama