The 10-day long Committee of Supply Debate, which began on 28 February, ended with a piece of good news for Singapore co-operative societies (co-ops).  

Waiver of first-tier CCF Contributions 

This year, co-ops in Singapore can see their first-tier Central Co-operative Fund (CCF) Contributions waived.  

Co-ops are membership-based businesses with social missions that operate on the principles of self-help and mutual assistance. To date, there are 76 co-ops with close to one million members in Singapore.  

Announced by Minister of State for Culture, Community and Youth & Trade & Industry Alvin Tan earlier today (10 March), the waiver came after recommendations from the Singapore National Co-operative Federation (SNCF) and the Registry of Co-operative Societies (RCS).   

Last month’s Singapore Budget 2025, delivered by the nation’s leader Prime Minister Lawrence Wong, saw a slew of support packages given for individuals and businesses. One of which is a 50 per cent corporate tax rebate for Year of Assessment 2025 and minimum cash grant of $2,000 for active companies with at least one local employee in 2024, capped at $40,000.  

Both of RCS and SNCF have sought more support for co-ops to level the playing field. Co-ops in Singapore are regulated by the RCS, which is a part of the Ministry of Culture, Community and Youth. 

“Since 1925, our co-ops have played a critical role in building our nation and our social compact. In fact, our first co-ops were formed to help Junior civil servants meet unexpected expenses,” Mr Tan said.  

“Today, we have a much wider and a much richer landscape of co-ops, and they cover a diversity of needs, from daily necessities to seniors, from recreation and also to help individuals with special needs,” he added. 

Against greater competition, rapid digitalisation, and changing consumer needs, co-ops must transform to attract and retain talent. “Over the past 100 years, many of our social needs have been better addressed, but others are emerging, including our demographic challenges,” Mr Tan said.  

Under the Co-operative Societies Act 1979, all co-ops are required to contribute 5 per cent of the first $500,000 of their annual surplus to the CCF. 20 per cent of any surplus over that amount may be contributed to either CCF or the Singapore Labour Foundation.  

These contributions form the foundation of CCF, which supports co-op education, training, research, and audit work, alongside broader development initiatives. 

The waiver will impact over 60 co-ops, who may choose to redirect these savings to enhance their social missions or to better cope with rising costs. 

In the last five years, the Government has waived off the first-tier CCF Contributions twice. First in 2020 to better support co-ops during the Covid-19 pandemic as well as a one-off $2,000 grant disbursed to ease cashflow. The same waiver was extended in the following year in 2021. 

“To do good, our co-ops must continue to do well,” said Mr Tan.  

By Sng Ler Jun