Medac allocates RM230m to new products implementation

Some 14,629 cooperatives will be able to enjoy benefits of those products

by AZALEA AZUAR / pic by BERNAMA

THE Ministry of Entrepreneur Development and Cooperatives (Medac) via the Commission of Malaysia (SKM) has allocated RM230 million for the implementation of new products of the Malaysian Cooperative Commission Revolving Capital Fund (TMPSKM).

A total of 14,629 cooperatives with about 6.5 million members would be able to enjoy these benefits with the implementation of five new products which are Micro Coop Financing (MicCoopFi-1), Sustainable Financing or Lestari Financing (LesFi-1), Financing Startup or Startup Financing (SuFi-1), Financing 100 Best Cooperatives or Best 100 Financing (Best100Fi-1) and Good Payer Financing PaymasterFinancing(GPMFi-1).

These products would help promote TMPSKM’s financing and vary in functions, according to the type of cooperatives.

LesFi-1 provides convenient financing in the form of working capital for cooperatives that have been selected under the Sustainable Village Programme by the Ministry of Rural Development.

On the other hand, SuFi-1 provides convenience funding to new cooperatives to fund potential projects or viable projects while Best100Fi-1 provides financing facilities or incentives to the Top 100 Cooperatives Year 2020.

Additionally, the GPMFi-1 aims to provide financing incentives to cooperatives with a track record of good financing with SKM.

The MicCoopFi-1 provides financing facilities which is easier for the micro clusters with an annual turnover of less than RM200,000 so they are able to carry out new activities or working capital for existing activities.

According to Development Entrepreneurs and Cooperatives Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar, these products would assist cooperatives from micro to large clusters in financing viable projects through the TMPSKM fund provided by the government.

“Medac is always concerned in ensuring the ecosystem of the country’s cooperative sector is always consistent and at the same time helps lighten the load the cooperative’s finances are affected,” he said in a statement yesterday.