Kuala Lumpur: A new cooperative law aimed at replacing the current Cooperative Act 1993 (Act 502) is set to be presented in Parliament this December, according to Ministry of Entrepreneur Development and Cooperatives secretary-general Datuk Seri Khairul Dzaimee Daud. The ministry seeks to create a legal framework that will allow the cooperative movement to function more efficiently as a business entity and significantly contribute to the national economy.
According to BERNAMA News Agency, Khairul Dzaimee stated that the existing act would be repealed and replaced with the new law, which is scheduled for its first reading in Parliament in December. The subsequent 2026 Parliament session, expected around March or April, will likely see the second reading, with the goal of implementing the act by July next year. This announcement was made during the inauguration of the ANGKASA-MINDA-UKM Cooperative Empowerment Forum.
Previously, Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick mentioned that the ministry was in the process of drafting the new cooperative act to replace Act 502, with the Cabinet paper on the matter having been presented and approved in principle on January 8. Khairul Dzaimee also highlighted that the ministry is working closely with state governments and stakeholders to ensure the new law is effectively put into practice for the benefit of cooperatives.
The proposed cooperative law is designed to foster more responsive and dynamic cooperatives, streamline cooperative businesses, enhance community well-being, and improve cooperative governance. Khairul Dzaimee emphasized the importance of liberalizing the cooperative movement by reducing excessive monitoring and granting cooperatives more freedom to operate as business entities.
In support of these efforts, Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA) president Datuk Seri Abdul Fattah Abdullah endorsed the government's initiatives to strengthen the cooperative ecosystem in Malaysia. He expressed the desire to make cooperatives a cultural norm among Malaysians by 2050 and voiced strong support for the liberalization of laws and regulations to enhance the cooperative framework.
The event was also attended by Universiti Kebangsaan Malaysia (UKM) deputy vice-chancellor (Academic and International Affairs) Prof Dr Abdul Halim Abdul Gafor and the Malaysian Inclusive, Development and Advancement Institute (MINDA-UKM) director Prof Tan Sri Dr Noor Azlan Ghazali.