MELAKA – The Malaysian National Cooperative Movement (Angkasa) has identified more than 10 conglomerates and major cooperatives in the country as its strategic partners in vying for one of Bank Negara Malaysia’s five digital bank licences, which will be issued by year-end.
Its president, Datuk Abdul Fattah Abdullah, said the strategic partners include telecommunications and finance companies, which gives Angkasa a significant edge, as each partner has its own strengths to support the movement’s application for the license.
“Large companies have large capitals, and we need a certain amount of capital as it is one of the conditions to apply for the licence.
“Additionally, we need strategic partners among cooperatives due to their large number of members,” he told reporters today.
Fattah said the digital bank licence will be able to strengthen Angkasa’s position from various aspects, including its role as the driving force of the country’s cooperatives in the future.
He said cooperatives, which have yet to hold their annual general meeting (AGM) for this year, will be exempted from doing so to alleviate their financial burden caused by the Covid-19 pandemic, as the cost of holding an AGM could be quite substantial.
Citing an example, Fattah said Angkasa had spent about RM8 million to hold its AGM, which covers, among others, members’ attendance allowances, as well as expenses for accommodations, and food and beverages.
“The exemption took into account the restrictions in terms of compliance with the standard operating procedures to curb the pandemic, as well as quorum problems, as the meetings cannot be held if the quorum requirement is not met.
“Entrepreneurship Development and Cooperatives Minister Datuk Seri Wan Junaidi Tuanku Jaafar has agreed with this decision, and it will be announced after it has been gazetted.”
He said, however, cooperatives still need to conduct an audit for the year, and may refer to Angkasa and the Cooperatives Commission of Malaysia for further information.
Fattah said Angkasa has proposed for more large and strong companies to set up cooperatives to provide employees with the opportunity to invest in the companies’ equities.
“This concept is not widespread in Malaysia, but overseas, many large companies have set up cooperatives for their staff, such as the Mondragon Corporation.”
He noted that such initiative will give staff members, as well as the company, an advantage, as employees will work harder to develop the business. – Bernama, December 20, 2020
