Cooperative Commission To Investigate Savings Scheme With Fixed Returns Mlm Elements

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Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri R. Ramanan said the matter, raised by Khoo Poay Tiong (PH–Kota Melaka) during the winding-up session of the Supply Bill 2026 in the Dewan Rakyat, would be looked into immediately. Bernama picKUALA LUMPUR: The Cooperative Commission of Malaysia (CCM) will investigate claims that a recently registered cooperative is promoting a savings scheme with fixed investment returns and operating under a multi-level marketing (MLM) system.
Deputy Entrepreneur Development and Cooperatives Minister Datuk Seri R. Ramanan said the matter, raised by Khoo Poay Tiong (PH–Kota Melaka) during the winding-up session of the Supply Bill 2026 in the Dewan Rakyat, would be looked into immediately.
"I can assure you that CCM officers seated behind me, after listening to what has been raised by Khoo, will certainly investigate this issue," he said.
Earlier, Khoo had interjected during Ramanan's speech, questioning whether cooperatives are allowed to offer fixed returns through savings schemes, including the one run by the Khazanah Usahawan Ko-Khawan Cooperative.
"My question is, are they allowed to offer fixed returns? As we know, cooperatives invest, sometimes they make profits, sometimes not, and their yearly earnings vary. Does our law allow them to promise fixed returns? In this case, they promise 12 per cent, if you save for 10 years, you get a 12 per cent return.
"Also, does our law allow cooperatives to use an MLM system, where agents earn commissions when they recruit new members and receive further commissions from them?" he asked.
Ramanan said CCM operates under its governing Act and strictly adheres to regulations.
He added that CCM has a monitoring division and will take necessary action if a complaint is received.
"However, as long as no complaint has been lodged, we cannot take any action at that point. Nevertheless, if a complaint is filed, or during monitoring or inspection we find that the cooperative has violated any approved conditions for its establishment, CCM will take the appropriate action," he said.
Ramanan said that the Khazanah Usahawan Ko-Khawan Cooperative was registered on March 26 to provide Islamic financing or credit facilities for its members.
He said the cooperative's prospectus for a special savings scheme amounting to RM20 million was approved in phases, with the first phase of RM5 million approved on June 19.
"The special savings scheme aims to raise internal funds from its members to carry out credit activities. The scheme has a maturity period of between two and three years, offering returns of eight to 10 per cent per annum.
"The Board is fully responsible for the performance of this special savings scheme. To date, the cooperative has been actively promoting the scheme as an opportunity for members to save under the terms outlined in the prospectus," he said.
Salamiah Mohd Nor (PN–Temerloh) also raised concerns about Koperasi Saujana Gemilang Kuala Lumpur, claiming that nearly RM3 million had gone missing.
In response, Ramanan assured that CCM would look into the matter and that he would provide a follow-up once investigations are completed.
On another matter, Ramanan said since the formation of the unity government two years ago, they have successfully reduced Tekun Nasional's non-performing loans and non-collection rates to single digits for the first time.
He said the long-term strategy for Tekun Nasional includes a financing approach that utilises collected funds as a revolving fund.
He added that the government has also expanded its target groups, including entrepreneurs from the asnaf and Technical and Vocational Education and Training (TVET) categories.
"We have also diversified financing products for targeted entrepreneurs, including women, persons with disabilities (PwD), and the Orang Asli community," he said.
Ramanan said alternative financing schemes have also been introduced, adding that the RM550 million allocation, the highest to date, reflects the strong commitment and collaboration between the ministry and the Madani Government. - NST

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