The National Cooperative Movement of Malaysia Bhd (Angkasa) hopes the 2016 Budget gives more emphasis to the cooperative sector and provides more funding for its development.

Its president, Datuk Abd Fattah Abdullah said Angkasa also asked the government to increase funds disbursed through the Cooperative Commission of Malaysia from RM100 million to RM500 million per annum.

"Angkasa has already held a series of meetings with the Budget Division of the Finance Ministry over issues affecting the cooperative movement," he told reporters after launching MyAngkasa takaful products here, Wednesday.

He said there was also a need to revise laws and regulations that hinder the progress and development of the cooperative movement.

"We've asked the government to review the Private Healthcare Facilities and Services Act. For example, if a coperative wants to set up a dialysis centre, it has to set up a company first as a cooperative is not recognised as a business entity.

"Likewise, if a cooperative wants to carry out tourism activities, it has to be licensed first," he said.

Abdul Fattah said Angkasa also asked the government to recognise the cooperative movement as a small and medium enterprise (SME) in order for cooperative societies to be eligible for incentives under SME programmes.

Currently, cooperatives rely on contributions disbursed through the Cooperatives Commission from four ministries, while the SME sector is looked after by nine ministries, he added.

Abdul Fattah said the cooperative movement is an important sector to the country's economy as it contributed RM35 billion to the gross domestic product last year and has assets worth RM120 billion.

"We've also asked the government to reduce tax imposed on cooperatives so that we can generate more revenue to the economy," he said.