Second-tier contribution rate lowered from 20% to 15% to support co-operatives’ social missions and deepen impact

Singapore, 6 June 2026 – Co-operatives in Singapore will have greater flexibility to channel resources towards their social missions and deepen their social impact, following a reduction in the second-tier contribution rate to the Central Co-operative Fund (CCF) and Singapore Labour Foundation (SLF) from 20% to 15%.

The change was announced by Mr David Neo, Acting Minister for Culture, Community and Youth & Senior Minister of State for Education, at the Singapore Co-operative Movement’s (SCM) inaugural Stewardship Day held at the Singapore Zoo earlier today. Over 700 participants including co-operators and their family as well as partners attended Stewardship Day 2026, an initiative under the SCM 10-year Transformation Roadmap, developed by the Singapore National Co-operative Federation (SNCF) in consultation with the Ministry of Culture, Community and Youth (MCCY).

Lower Contribution Rates to Support Co-operatives in Delivering Deeper Social Impact

Co-operatives in Singapore contribute to the CCF, which supports co-operative education, training, research, audit and the general development of the co-operative movement in Singapore. Under the current two-tier structure, co-operatives contribute 5% of the first $500,000 of their annual surplus (first-tier) to the CCF and 20% of any surplus above that amount (second-tier) to either the CCF or the SLF.

The reduced second-tier rate of 15% will apply to all co-operatives, for any surplus exceeding $500,000 resulting from its operations during any financial year ending on or after 31 December 2025. The first-tier rate of 5% on the first $500,000 of annual surplus remains unchanged. Co-operatives may continue to direct their second-tier contribution to either the CCF or the SLF.

This marks the first reduction in the second-tier contribution rate since it came into effect in 1990. In determining the new rate, MCCY had engaged key stakeholders in the sector closely, such as the Singapore Labour Foundation (SLF), the Central Co-operative Fund (CCF) Committee and the Singapore National Co-operative Federation (SNCF).

This change will benefit approximately 40% of the co-operatives that currently contribute to the CCF and SLF. This allows them to have more financial resources to channel into member welfare, community programmes and capability-building. Co-operatives can continue to tap on existing resources, such as CCF Grants, to meet their operational and developmental needs.

The rate reduction is part of the broader commitment under the 10-year Transformation Roadmap which seeks to strengthen the sector’s talent pipeline, improve governance and capabilities, and deepen co-operatives’ social impact.

Mr Tng Ah Yiam, Chairperson of SNCF, said: “SNCF is heartened that, following regular consultations and feedback shared with the regulator over the years, the reduction in the contribution rate has been carefully considered and will be implemented. This is a positive move that will help co-operatives ease cost pressures and strengthen their ability to continue serving members and communities effectively, while remaining committed to good governance and sustaining their co-operative operations.”

Stewardship Day 2026: Building the Next Generation of Co-operators

As part of the SCM 10-year Transformation Roadmap, the Co-operative Stewardship Programme aims to nurture 250 Stewards by 2035 who demonstrate qualities of being “Willing, Able, and Ready”, as reflected in their active involvement in the movement. These Stewards are expected to have a deep understanding of the co-operative model and inspire others to get involved with the movement.

Stewardship Day 2026 kickstarts the Stewardship agenda by calling upon co-operators to come together as a movement to stay committed in delivering value and impact to members and community through the six co-operative values of self-help, self-responsibility, equity, equality, democracy, and solidarity.

Held at the Singapore Zoo earlier today, the inaugural event, themed ‘Delivering Value through Values’, brought together co-operators, members, partners and volunteers together for a day of learning and discovery centred on co-operative values and stewardship.

Reflecting on the significance of Stewardship Day, Mr Tng added: “At the heart of stewardship is the belief that when our shared co-operative values are lived out, they translate into meaningful and lasting impact. Our stewards are instrumental in strengthening and advancing the movement, and inspiring others to step forward and be part of it.”

Through interactive learning booths and activities at the Stewardship Experience Zone, including a Giant Jenga installation themed around co-operative values, participants were invited to explore how co-operatives make a difference in communities across sectors such as credit, consumer and services, and healthcare. Stewards from the co-operative sector also shared how their co-operatives deliver value through values.