Business Development Program Through Cooperatives (Development Assistance)

This program aims to encourage and enhance cooperative involvement in potential and viable business activities to increase cooperative income.

1. Financial aid to cooperatives for implementing, improving, and strengthening the business or enterprises they engage in;

2. Encourage cooperative participation in high-value economic activities;

3. A catalyst to increase cooperative revenue contributions;

4. Improve cooperatives' control over activities along the(supply chain);

5. Foster an entrepreneurial culture and improve professionalism; and

6. The incentive focuses on micro and small-sized cooperatives as a booster to start businesses and upgrade them to better clusters.

The economic sectors that this service focuses on are as follows:

1. Wholesale and Retail

2. Financial Services

3. Agriculture

4. Agricultural and Agro-Based Industries

5. Tourism, Personal Care, and Health

6. Real Estate Development and Construction Industries

1. Increase the income level of B40 households towards a middle-class society – Prioritize micro and small cooperative clusters in developing entrepreneurship among cooperative members;

2. Empower communities to build a productive and prosperous society – Provide business assistance to community-based cooperatives;

3. Transform rural areas to improve community well-being – Viable and business-oriented cooperatives in rural areas;

4. Accelerate regional growth towards a better geographical balance – Involve cooperative businesses nationwide, especially in Sabah and Sarawak; and

5. Strengthen the opportunities for the Bumiputera Economic Community (BEC) to enhance wealth ownership – Over 80% of registered cooperatives are Bumiputera-based.

Development Assistance

1. The cooperative must be registered under the Cooperative Act 1993 (new/existing) and supervised by the Malaysia Co-operative Societies Commission (SKM);

2. The cooperative's by-laws (UUK) must allow the cooperative to engage in business activities in the specified economic sectors;

3. The cooperative must have satisfactory management and administration;

4. The cooperative must comply with cooperative laws (Cooperative Act 1993, Cooperative Regulations, Guidelines);

5. The cooperative must comply with other relevant laws governing business activities in the specified economic sectors (if applicable);

6. The cooperative must obtain the necessary approvals/licenses from relevant authorities to carry out business activities in the specified sectors (if applicable);

7. The cooperative must conduct a thorough feasibility study, market potential analysis, and demonstrate the ability to maintain business performance in the long term;

8. The cooperative must have no outstanding repayment of TMP-JPK financing, KWAP contributions, Audit Fees, or other statutory payments imposed by SKM;

9. Cooperatives that have received Development Assistance may reapply after three (3) years, subject to the performance of previous assistance;

10. An agreement must be signed between the cooperative and the Malaysia Co-operative Societies Commission to ensure that the approved business development grant is spent prudently and in accordance with the scope of assistance provided;

11. The grant funds must be used by the cooperative for the stated scope within six (6) months of receiving the funds;

12. The decision of the Assistance Committee Meeting is FINAL, , and no appeals will be considered.

1. Renovations/upgrades of premises/buildings/structures for business purposes;

2. Purchase of machinery such as front shovels, tractors, etc., for agricultural and plantation activities undertaken by the cooperative (not for rental purposes). Assistance is provided as a Matching Grant;

3. Purchase of equipment/machinery/fittings (automated & computerized);

4. Development of areas, drainage, irrigation systems, construction of pens/sheds/cages, nurseries, security systems (fences), bee hive logs, swallow bird farming, and others.

1. Purchase of vehicles/equipment/furniture/office supplies and financing of operating costs or working capital for business activities are not included in the scope of this assistance and WILL NOT BE CONSIDERED.

2. Applications for changes in scope by the cooperative after the assistance is approved will NOT BE CONSIDERED. The cooperative must return the received assistance to the Malaysia Co-operative Societies Commission. A new application must be submitted if the cooperative is still interested.

1. Applications must be submitted through the SKM Online Application System:

i. You must register as a new user, after which you will receive a username and password to access the Online Application System. For those who already have access, you can log in directly.
ii. Log in and complete ALL the required details in the Cooperative Development Assistance Application System (eFast SKM)

2. Applicants must also prepare the following documents to upload into the system:

1. a. Cooperative Development Assistance Proposal (SKM);
   b. Audited financial statements for the last two (2) years / three (3) years for applications under the "ADVANCE" category;
   c. Details of the requested assistance costs;
   d. Extract of the minutes from the Annual General Meeting;
   e. Extract of the minutes from the Board Meeting;
   f. Quotation(s);
   g. Supporting photographs for the proposed project;
   h. Statement of receipts and payments for the last six (6) months;
   i. Latest bank statement;
   j. Other supporting documents, such as Permission Letters from Authorities, Lease Agreements/Contracts between Relevant Parties, Business Licenses/Other Relevant Licenses, Proof of Ownership, and others.

Cooperatives that succeed in their application MUST:

1. Be prudent and diligent to ensure that the implemented project remains viable.

2. Ensure the project's performance is satisfactory, profitable, and provides a reasonable return to the cooperative within a reasonable timeframe.

3. Conduct a due diligence audit and take the initiative to improve the cooperative's business performance if unsatisfactory.

4. All equipment/machinery/fittings/assets obtained with the assistance must be registered as the cooperative's assets.

5. Use the assistance/equipment/machinery/fittings only for the approved program purposes.

6. Modifications to equipment/machinery/fittings are not permitted in any form. The cooperative may not sell or transfer ownership of the assistance assets without first obtaining approval from SKM.

7. Pay compensation if the equipment/machinery/fittings are lost due to negligence or deliberate damage.

8. The equipment/machinery/fittings used by the cooperative must be well-maintained, clean, and in good condition.