Cooperatives in Brunei urged to take advantage of FDI projects: official
COOPERATIVES in Brunei can leverage the economic spinoffs found in different stages of the value chain spurred from foreign direct investment (FDI), a senior government official said.
Deputy Minister of Finance Hj Mohd Amin Liew Abdullah said that with the right business model, coops can benefit from business opportunities found in FDI projects.
He said this following a dialogue hosted by Darussalam Enterprise (DARE) on coops.
“First of all, you need to understand whether the business model could be done under a cooperative structure, so you cannot just jump into a cooperative.
“You must also understand how a cooperative structure will help you achieve what you’re trying to do,” he said.
If the coop model matches the opportunity, the coop can then pursue the business, generate economic activity and contribute to the community.
Youths interested in using the coop model to operate a business must know how a coop can work for their business.
The increased involvement of youth in coops would also help bring in new business ideas and allow the coops to diversify their businesses.
It is important for coops to diversify and not depend on a single source of income, he said.
Hj Abdul Jalil, deputy permanent secretary of IT, e-government and industry at the Prime Minister’s Office, said DARE is helping coops through its Industry Business Academy (IBA) programme.
IBA seeks to develop more sustainable businesses by training in business fundamentals such as bookkeeping.
The IBA programme is aligned to the needs of coops, which need to improve on their governance just like any other business, he said.
Murni Hj Metamit from the Cooperative and Cottage Division of the Energy and Industry Department at the PM’s Office said activities run by coops must seek to improve their dividend yield to their members.
The members must also support the endeavours of the coops by choosing to purchase products or conduct business with their own coop.
The voting power of members is equal regardless of the number of shares that the various members may have placed in the coop, he added.
Earlier this month, Colonel (retired) Hj Mohammad Yasmin Hj Umar, minister of energy and industry at the PM’s Office, said the Cooperative Societies Act will be amended to ensure that coops are held accountable and to improve the governance of coops.
