Singapore's co-operatives will be better placed to do more for their members and the communities around them, after the government announced on Saturday (June 6) a reduction in the second-tier contribution rate to the Central Co-operative Fund (CCF) and Singapore Labour Foundation (SLF). This is the first such cut since the rate took effect in 1990.

The second-tier rate drops from 20% to 15%, applying to any surplus above $500,000 generated from financial years ending on or after 31 December 2025. The first-tier rate (5% on the first $500,000 of annual surplus) remains unchanged.

Unlike conventional companies, which pay a flat corporate tax rate of 17% on chargeable income, co-operatives contribute instead to the CCF and SLF. The CCF functions as the sector's development engine: funding co-operative education, training, research and audits, and disbursing grants to eligible co-operatives to support their growth and operations.

Read the full coverage here. 

Don't miss the full speech by Acting Minister David Neo here. 

Also catch what SNCF Chairperson Tng Ah Yiam said at Stewardship Day here.