Domestic Trade, Cooperatives and Consumerism Minister Hamzah Zainudin said the present RM2.5 billion worth of shares needs to be increased.
“A lot of members want to buy and add (shares), but there is a limitation.
“The (KPF) board members will discuss to see how much more is needed,” he told reporters at KPF’s 36th annual general meeting (AGM) here today.
He said the board members would then bring the matter to him for approval.
“The decision will be announced at the next AGM,” he said when asked on the matter.
He added that more shares could help KPF, which was formed by the Federal Land Development Authority (Felda) in 1980, to become more globally competitive.
According to KPF’s annual report, the cooperative currently has 264,173 members.
The members are allowed to buy a total of RM100 to RM250,000 worth of shares per family. Each share is worth RM100.
The current RM2.5 billion limit was set during the 2013 AGM.
At the AGM, Hamzah also announced that KPF members would most likely receive 10% dividend for 2016.
KPF is presently awaiting approval for this from the Cooperative Commission of Malaysia (CCM), he said. Members had received 15% dividend in 2014 and 10% in 2015.
Hamzah added that his ministry would likely table an amended bill to the Cooperatives Societies Act 1993 in the Dewan Rakyat to introduce a three-tier cooperative system to empower the cooperatives.
Under the amendments, he said, the first tier cooperative will receive a 10% dividend without waiting for approval from CCM.