MEDAC to execute four economic intervention initiatives worth RM20mn to support micro-SMEs and SMEs

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Called the Cooperative Economic Rehabilitation Intervention programme, it is funded by Malaysia’s PEMULIH package.

As part of Malaysia’s PEMULIH package, the Ministry of Entrepreneur Development and Cooperatives, through the Cooperative Commission of Malaysia (SKM), will allocate RM20mn to execute four economic intervention initiatives to help alleviate the financial burden of affected cooperatives in the pandemic season.

Called the Cooperative Economic Rehabilitation Intervention Programme, the four sub-programmes are:

Prihatin Rakyat Cooperative Establishment Programme (KPR);
Prihatin Rakyat Cooperative Sales Programme (JKPR);
Cooperative Movement Economic Transformation Programme (TRANSFER); and
Online Cooperative Products or Services Trade Programme (e-DAPAT)

These initiatives will take place over a period of one year from July 2021 to July 2022.

KPR and JKPR

According Minister Dr. Haji Wan Junaidi Tuanku Jaafar, the KPR and JKPR programmes mainly target entrepreneurs and individuals from micro-SMEs (PKS-micro) and SMEs (PKS).

He shared that the Ministry through the programme “will further encourage the establishment of new cooperatives” to enable the aforementioned parties who lost their source of income to carry out economic activities with the cooperatives’ help.

“It is estimated that a total of 1,000 entrepreneurs will be assisted with the establishment of 50 cooperatives through an allocation of RM5mn provided by the government.

“Therefore, people are encouraged to support the JKPR by buying daily necessities at cooperative shops that offer cheaper prices compared to the local market ", Minister Wan Junaidi urged.

With KPR and JKPR, the ministry will provide sales incentives to cooperatives that carry out retail activities to reduce the price of daily necessities such as sugar, flour, cooking oil, rice, and eggs.

Further, to ensure consistent cash flow of cooperatives, the Ministry highlighted that a total of RM15,000 one-off sales incentive was given to 200 cooperatives directly involved in the wholesale and retail sector to reduce the price of daily necessities with an allocation of up to RM3mn.

TRANSFER

With regard to the TRANSFER programme, it provides assistance grants amounting to RM100,000 to the affected cooperatives, especially in the tourism and personal care sector to explore new businesses.

The programme focuses on 100 cooperatives as beneficiaries, and is expected to provide 200 job opportunities as a result of cooperatives' involvement in new fields.

A total of RM10mn is allocated to TRANSFER, the Ministry shared.

E-DAPAT

According to MEDAC, e-DAPAT is a programme that focuses on boosting the accessibility and availability of cooperative products or services online.

It targets micro, small, medium and large cluster cooperatives that have potential products or services—including credit cooperatives such as agrobanks—to be commercialised through online platforms.

The ministry shared that it has provided an allocation of RM2mn through grants of up to RM20,000 for e-DAPAT to go through.

"This cost financing also covers the cost of digital marketing, advertising and promotion as well as on-board training for the transition of the online cooperative service platform", said Minister Wan Junaidi.