KUALA LUMPUR (Aug 11): The Ministry of Entrepreneur Development and Cooperatives will investigate Koperasi Khazanah Usahawan (KO-KHAWAN) Bhd for allegedly promising the public unusually high returns of 12% through its savings scheme. This comes after a call for action by Khoo Poay Tiong (Pakatan Harapan-Kota Melaka).

Minister of Entrepreneur Development and Cooperatives Datuk Ewon Benedick said all investment promotion activities by cooperatives must first obtain approval from the Malaysian Cooperative Commission (SKM).

“If they are found to be conducting promotional activities without approval, there is a provision that allows the authorities to take action,” Ewon told Parliament during an oral question-and-answer session on Monday. However, he did not specify the law under which such action would be taken.

Meanwhile, Ewon said the ministry is in the midst of drafting a new Cooperative Act to replace the Cooperative Act 1993, aimed at strengthening governance and ensuring the sector remains relevant in a changing socio-economic landscape.

He said the updated Act would align cooperative regulations with technological advancements, enhance accountability, and empower cooperatives as sustainable, competitive economic entities.

Key measures proposed include greater protection and clarity for members’ rights, a more structured governance framework for cooperative boards, stronger regulatory oversight, and swift enforcement against misconduct.

The updated Act will also focus on expanding cooperatives’ role in job creation, community income generation, and supporting national well-being initiatives, he added.

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