SITF Dialogue at the Cooperative Commission

SITF hosted a dialogue session at the Cooperative Commission (SKM) on November 25, 2010 from 2.30pm. About 60 people participated. They were representatives of cooperatives and business associations located in the Klang valley. With the assistance of Bank Negara team this was made possible.

En Ahmad Zainal, Director of Policy and Development Planning Division of the Cooperative Commission gave the welcoming words. He said that a cooperative is different from an association. In the case of cooperatives they can carry out both the functions of undertaking business as well as fulfill the social functions of like an association. However an association registration restricts them from doing business. This potential of the cooperatives could be tapped for the socio-economic development of the poor sections of the Malaysian Indian community

The program was divided into two parts.:-

The first was three presenters from SKM on how to register a cooperative, what grants are available from SKM and what loans available for undertaking business.

The second was the briefing on micro loans, below RM50, 000 available from three development financial institutions such as Agro bank, BSN and Bank Rakyat. In addition the representative from the Ministry of Housing and Local Government spoke on business licenses.

Lessons from the Dialogues

Firstly, the potential of the cooperatives have not been fully explored by the community as a vehicle for community empowerment. This potential for taking greater initiative in a self help approach is imperative. In the past due to the failure of some of the Indian lead cooperatives, many within the Indian community have be put off by this approach. However on hearing the various presentations made by SKM, it is now of utmost importance that this vehicle for socio-economic transformation be promoted and utilized.

Secondly, the three presentations from SKM clearly reveal that the Federal Government has put into place many policies, programs, services and grants for the promotion and development of cooperatives. This is an effective mechanism for people empowerment in the socio-economic sense. Therefore organizing people into smaller groups at various parts of the country might be a way forward as there needs to be only 50 people to form a cooperative. Local communities could organize themselves in this way in small units and tap the self potential rather than looking for hand-outs. In this context SKM resources could be utilized for this purpose especially in awareness, capacity building and leadership development.

Third, the question-answer session was indeed revealing as it indicated that many of the Indian cooperative and business leaders did not know of the services and schemes available such as grants and loans through SKM. There is a need for a better system of dissemination of basic information on government provisions and programs. At the same time the community must also take the initiative to make themselves aware. It must also come from the community.

Follow Up measure

SITF will host a follow up meeting with a number of the Indian cooperatives to launch a combined campaign in the promotion of cooperatives as a vehicle for people organizing and mobilization for socio-economic development.