NAJIB GIVES NOD IN EXCHANGE FOR SUPPORT? MCA set to get licence to operate BANK

KUALA LUMPUR - MCA is expected to receive a licence to operate a bank through its cooperative Koperasi Jayadiri Malaysia (Kojadi), Chinese language business daily Nanyang Siang Pau reported today citing sources.

According to the unnamed sources, this plan has been worked on by MCA and Kojadi, which were biding their time to submit an application at the appropriate moment.

Citing sources, Nanyang Siang Pau said the prime minister is said to have indicated his approval for MCA’s plans for a bank.

MCA president Datuk Seri Dr Liow Tiong Lai is expected to seek the prime minister’s final nod during this Friday’s official launch of the Secretariat for the Advancement of Malaysian Entrepreneurs (SAME) and a microcredit fund of RM50 million for Chinese small and medium entreprises, the paper said.

Prime Minister Datuk Seri Najib Razak is also the finance minister.

Approval for Kojadi to form a bank will make it the third cooperative to do so, with the two others being Bank Rakyat and the Penang-based Bank Persatuan with 14 branches throughout Peninsular Malaysia, Nanyang Siang Pau said.

It also said that, if realised, Kojadi’s bank would be the only one involving a predominantly Chinese cooperative.

Liow Tiong Lai

Kojadi honorary secretary Datuk Yik Phooi Hong said yesterday that the cooperative will hold an annual general meeting this June 14, where the proposal for it to operate a cooperative bank will be deliberated.

Yik also reportedly said the cooperative is proposing to give out a tax-free dividend for the year 2014 at a rate of 4.5 per cent to the cooperative’s 62,000 members, Nanyang Siang Pau reported.

According to Yik, Kojadi’s post-tax profits for the financial year ending in December 31, 2014 is RM5.67 million, up from RM5.57 million in the previous year.

MCA formed Kojadi in 1981 to primarily aid Chinese students to pursue tertiary education amid limited seats in public universities for non-Bumiputeras and a quota for entries, the paper said.

Kojadi has given out over 238 million in education loans with over 10,000 students having graduated and wields assets worth over RM 156 million. - M'kini