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PM: Co-ops help reduce inflation

By Sunday July 10th, 2011 No Comments

PUTRAJAYA: Co-operatives can play a significant role in assisting the Government to reduce inflation by providing goods, especially food at an affordable price, said the Prime Minister.

Datuk Seri Najib Tun Razak said co-operatives with its thousands of outlets could ensure the cost of living here remained low.

“The Government plans to expand the Kedai Rakyat 1Malaysia concept and co-operatives with sundry or grocery outlets could participate.

“Consumers will benefit as the goods under the1Malaysia brand are not only cheaper by 40% but are also of high quality,” he said at the launch of the National Co-operative Day 2011 with the theme “Transformation of Co-operatives Generates the Rakyat’s Economy”.

Also present were Domestic Trade, Consumerism and Co-operatives Minister Datuk Seri Ismail Sabri Yaakob and his deputies Datuk Tan Lian Hoe and Datuk Rohani Karim.

Najib said the presence of about 15,000 people at the event was proof that many were against illegal rallies.

“If there are some people who want to hold an illegal rally, there are many more who are against it,” he said, in reference to the illegal rallies in Kuala Lumpur yesterday.

He said under the National Cooperatives Policy, the sector was expected to contribute 5% to the Gross Domestic Product by 2013 and 10% by 2020.

He also announced that co-operatives’ contribution to the Co-operatives Education Trust Fund would be reduced to 1% for two years until 2012 and their payment to the group statutory reserve of 25% yearly be brought down to 15% till May 2013.

He said the move would result in an additional RM300mil for co-operatives which could be used to further boost their business activities.

Najib added that structural change, which would see smaller cooperatives merging, would make them more economically viable.

Source : The Star

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