On 4 March 2024, the Singapore parliament amended its Cooperatives Societies Act of 1979. Now, cooperatives are allowed to pay member dividends from their reserves.
These payments can be made as long as they are approved by the Registrar of Co-operative Societies (RCS) in Singapore.
The amendment came to help support cooperatives and their members who are still working to catch up after the COVID-era market slowing.
Additionally, the ability for cooperatives to use their reserves in this way allows member payments to remain stable as the cost of living rises.
Most see this amendment as one of a few good first steps toward developing the co-operative sphere. Its passage has ushered in more debates about what else can be done to help grow co-operatives across the country.
To read the amendment and legislation in its entirety, click the attachment below.
