How does the cooperative budget compare to SME allocations?

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The cooperative movement's allocated budget for 2021 is RM36.5 million, which Angkasa considers small in comparison to the SME sector.

The total budget allocated to the cooperative movement for 2021 stands at RM36.5 million. This figure is comprised of RM6.5 million designated for the development of cooperative businesses and RM30 million for the financing of the cooperative revolving capital fund. Angkasa, the national cooperative body, has expressed that this allocation is modest when contrasted with the resources directed towards the Small and Medium Enterprises (SMEs) sector.
Cooperative Movement's Total Budget

The entirety of the budget earmarked for the cooperative movement amounts to RM36.5 million. This sum is intended to support various aspects of cooperative operations and growth. The budget is divided into two main components: RM6.5 million for the development of cooperative businesses, aiming to foster expansion and innovation within these entities, and RM30 million dedicated to the cooperative revolving capital fund, which provides financial resources for ongoing operational needs.
Comparison with SME Sector

Angkasa's president, Datuk Abdul Fattah Abdullah, highlighted that the RM36.5 million allocation for cooperatives is perceived as small when measured against the SME sector. He noted that approximately one million individuals are involved in SMEs, whereas cooperatives collectively encompass a significantly larger membership base of 6.1 million individuals. This disparity in membership numbers, coupled with the budgetary figures, forms the basis of Angkasa's view on the relative allocation.
Request for Reconsideration of SME Budget

In light of this perceived disparity, Angkasa has requested that the government consider allocating a portion of the SME budget to the cooperative movement, should further increases to the cooperative budget not be feasible. The organisation also hopes for the inclusion of provisions within the SME budget that would allow cooperatives registered with the Cooperatives Commission of Malaysia (SKM) to apply for and receive benefits available to SMEs. This would provide cooperatives with access to additional financial support and developmental opportunities.

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How does the cooperative budget compare to SME allocations?

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