Co-op sees drop in 2015 profits

National 1 minute, 51 seconds

BELAIT

SERIA’s oldest fuel station continues to be the backbone of Koperasi Perniagaan and Perusahaan Melayu Berhad Seria’s (KPPMS) income, delivering $98,657 in net profits in 2015.

Chairman of KPPMS Hj Ahmad Hj Hassan said yesterday at their annual general meeting that the wholly bumiputera owned cooperative faced a particularly testing year in 2015 amidst the economic downturn, with 2015’s net profits decreasing by $6,384 compared to the year prior.

KPPMS biggest asset, a $1.6 million building in the heart of Seria Town, made a loss $34,665, which had to be covered by the $136,000 in net profits made collectively through fuel, hotel and transport operations.

“2015 was a very challenging year for our cooperative business amidst the global economic downturn. Our hotel business was affected, as well as shop lot rentals for our KPPMS building,” said Hj Ahmad Hassan.

The 24-room budget Hotel Koperasi, housed within the KPPMS building, only turn up a relatively small net profit of $27,500, due to a combination of a downturn in expatriate arrivals in the oil and gas sector, stiff competition from Seria’s only other hotel located nearby and $12,000 spent to refurbish the room’s interior and beds.

Shareholders were expected to receive a dividend of six per cent this year, a three per cent drop from the year prior, but Hj Ahmad motioned to the Energy and Industry Department under the Prime Minister’s Office (EIDPMO) to see if it could cut into its annually required savings to increase its dividend.

Alhamdulilah, the request was granted after being carefully studied, and we are able to dole out a 10 per cent dividend for the 2015 financial year,” he said.

“Savings-wise we are still in a very good position. We have more than a million in reserve, built up from when we set aside 25 per cent of all annual net profits towards our savings fund.”

The chairman also informed shareholders that the government has restructured their overseeing of cooperatives from the Brunei Industrial Development Authority to the Co-operative and Cottage Division (CIC) under EIDPMO.

“We have also involved CIC in some of our monthly meetings. Hopefully this shift will help increase the reputation of cooperatives and help us better our business in the long term,” said the chairman.

The Brunei Times