KOPEKS SALARY DEDUCTION FOR LOANS RAISED TO 60pc
September 27, 2010, Daily Express
Kota Kinabalu: Chief Minister Datuk Seri Musa Aman has approved Kopeks' application to increase the salary deduction limit on loans for State Government staff.
Sabah Government Employees Co-operative Society Bhd (Kopeks) Chairperson Datuk Maznah Abdul Ghani said the salary deduction limit is increased from 50 per cent to 60 per cent which is the same as the salary deduction limit permitted for federal staff. The net pay, however, should not be less than RM700 per month.
She also said Kopeks recorded a 73.4 per cent increase in revenue last year.
Earnings rose from over RM6.19 million in 2008 to more than RM10.74 million in 2009 while its profits before tax also doubled to RM4.19 million last year compared to only RM1.37 million in 2008.
"This conspicuous increase happened because members who used the loan service recorded an increase of 195 per cent from RM24.44 million to RM47.62 million last year.
"Loan collection performance is satisfactory and the non performing loan rate was 0.83 per cent," she said at the annual meeting at Likas Sports Complex Multipurpose Hall, Sunday.
Based on the 2009 performance, she said the Board Members proposed a dividend distribution of seven per cent, that is five per cent on share and two per cent on fee.
"However, this suggestion is subject to the approval of Annual General Meeting (AGM) and Malaysian Co-operative Commission (SKM)."
Maznah also said that this year, Kopeks received several funds to accommodate member's loans from SKM through Round Modal Fund amounting to between RM5 million and RM1.7 million.
"Another loan was from Sabah Development Bank amounting to RM20 million which is now in the process of documentation and final endorsement from SKM.
"We are also discussing with other funding agencies to negotiate round modal as Kopeks member's loans for 2010 until 2012," she said.
Maznah said the main Kopeks challenge is the lack of working capital.
"At the moment, we are using outside funding measures as an average-term growth strategy. However for a long-term growth strategy and for a more effective transformation, the support from all members is very vital.
"We hope each Kopeks member will increase their total share investment respectively from a RM100 minimum to RM1, 000 this year.
A higher additional is very much encouraged before we can determine a maximum share limit for each member later on.
"With the new share injection, we hope to increase the amount of Kopeks share from RM3 million now to RM15 million in 24 months.
"The additional amount in share is important as it can expand the internal working capital modal which in the long-term can help to reduce loan cost and members could enjoy the return of dividend from the profits which is estimated to increase."
Meanwhile, Sabri Sidah, Abdullah Sani Daud, Saturah Jamrah @ Masturah, Mat Salleh @ Awang Sapong and Tujuh Nalin received amount of votes that enable them to stay as Kopeks Board Director for 2010/2011 session.