Wednesday, April 1, 2009

Co-op seeks to declare 200% dividend

GEORGE TOWN: A little-known cooperative in Kelantan has stunned officials of the Cooperative Commission of Malaysia (SKM) by seeking permission to declare a 200% dividend for its members.

SKM executive chairman Datuk Mangsor Saad described the proposal, which he received last month, as “extraordinary.”

»Last month’s proposal is extraordinary« DATUK MANGSOR SAAD

“I only approved the payment of a 100% dividend. I’m now thinking of allowing the proposed remaining 100% dividend to be given to members as bonus shares,” he told newsmen after opening a seminar for cooperatives here yesterday.

He said the cooperative was involved in the Ar-Rahnu or Islamic pawnshop business. “It is enjoying brisk business because many women in Kelantan like to wear gold jewellery,” he said.

Mangsor said the proposed 200% dividend payment was astounding as even public-listed companies were only paying about 5% dividend.

“When I saw their proposal on the dividend, I couldn’t believe my eyes,” he said.

He said the proposed dividend payment was the highest since SKM started operations on Jan 1 this year. It was previously known as the Cooperative Development Department.

He said the Government upgraded the department to a commission to strengthen the cooperative movement and to beef up the cooperatives' financial strength.

There are 5,170 cooperatives in the country with 5.86 million members.

“We plan to increase this number to 10,000 cooperatives by 2013. The target is 1,000 new cooperatives this year,” he said.

“There is no problem in giving approval to 500 cooperatives. But for the rest, we have to push harder,” he added. -The Star

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