Cooperatives in Malaysia – What Went Wrong?

by Zauyah Binti Zainuddin

June 2022

Abstract

This study is to examines the performance of Cooperatives in Malaysia after 100 years. Cooperatives remain a dominant entity in Malaysia’s socio-economic environment. More recently, cooperatives have played an important role in sustaining the Malaysian economy during the adversity of the Covid-19 pandemic (Business Today, 2021) (Wei, 2021),(BERNAMA, 2021).

In order to prove that cooperatives are one of the major economic player in Malaysia, the Ministry of Entrepreneur and Cooperative Development (Medac) is channelling RM20 million worth from the People’s Protection and Economic Rehabilitation Package (Pemulih) package to support the Cooperative Economic Rehabilitation Intervention Programmes.

These programmes are the Prihatin Rakyat Cooperative Establishment Programme (KPR), Prihatin Rakyat Cooperative Sales Programme, Cooperative Movement Economic Transformation Programme (TRANSFER) and Online Cooperative Products or
Services Trade Programme (e-DAPAT) (AZUAR, 2021). With all the packages offered by the government, the aim is to revitalise cooperatives align with the transformation plan. A study is to highlight why after 100 years cooperatives still need support from government. What went wrong? A numerous of members of cooperatives were selected from seminars, gathering and functions to answer the questionnaires prepared. The forms were distributed and collect back on the same day.

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