'Cooperative sector can contribute 4pc to GDP'

THE cooperative sector can play a bigger role in the economy and may well contribute 4 per cent to economic growth by 2012, Second Finance Minister Datuk Seri Ahmad Husni Mohamad Hanadzlah said.

"It's the third growth engine now and I believe it can play a bigger role because the structure is different from a sendirian berhad, it is more like a big grouping of people so I think it can contribute more to the economy," the minister said after giving a speech at a seminar planned by the National Co-operative Organisation of Malaysia (Angkasa) in Kelana Jaya yesterday.

"In places like Scandinavia, Japan and (South) Korea, cooperative is a big power in the economy. This is the direction that our cooperative body should take," he said.

The sector, currently the third growth engine for Malaysia, contributed 1.45 per cent to the gross domestic product in 2008

The sector, currently the third growth engine for Malaysia, contributed 1.45 per cent to the gross domestic product in 2008, Ahmad Husni said.

On the restructuring of petrol subsidy, he said the subsidy and all other government aids are still under study.

"What's our future direction with regards to the government subsidies, including that for petrol, as well as how to implement them in line with the objective to emerge as a high-income nation, are being studied," he said.

On the rise in Overnight Policy Rate, he said the central bank has raised this by 25 basis points after a detailed study on the economic condition.