The rate, reduced from 15% currently, is to help them recover from the Covid-19 pandemic, said entrepreneur development and cooperatives minister Ewon Benedick.

It will be applicable until Nov 30, 2025.

“We are aware of the challenges faced by cooperatives, especially during the pandemic.

“Many of them are struggling to revive their business activities, which is why the ministry has decided to reduce their contribution as one way to assist them,” Ewon said at a press conference after the launch of Malaysia Cooperative Policy 2030 here today.

He said the government’s decision is a result of engagements by his ministry with cooperatives around the country, after he took office at the end of last year.

Ewon also asked the government to provide his ministry an allocation for its Jualan Madani Koperasi programme, similar to the funding for the domestic trade and cost of living ministry’s flagship programme Jualan Rahmah.

He said the programme aims to help people get their daily goods at a reasonable price amid rising living costs.

“Based on the public’s encouraging response, the ministry hopes to expand Jualan Madani Koperasi’s coverage to cooperative members throughout the country,” he said.