The agenda is to develop the cooperative sector into a medium in improving the economic value chain, especially among target groups

by HARIZAH KAMEL / pic by MUHD AMIN NAHARUL

THE Ministry of Entrepreneur Development and Cooperative (Medac) is targeting the contribution of the cooperative sector to the country’s GDP to increase to 5% by 2025.

Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar(picture) said the target is based on the Malaysian Cooperative Transformation Plan 2021-2025 (TransKoM).

“Medac also projected the revenue of the cooperative sector to rise to RM60 billion from RM40 billion currently.

“The sector has great potential in the country’s GDP contribution, as well as being the right agenda in the development of the B40 (bottom 40%) income group and other target groups,” he said in a media briefing yesterday in Kuala Lumpur.

To date, the cooperative sector has contributed 3%-4% to the GDP. Wan Junaidi said this figure will continue to increase year-on-year as Medac is committed to strengthening the cooperative sector through TransKoM that will have a total of 20 strategic measures, 36 programmes or activities and 30 key performance indicators.

“TransKoM will be able to act as a catalyst to the process of inclusive economic transformation and pave the way for the sector to generate an estimated revenue of RM100 billion by 2030, in line with the National Entrepreneurship Policy 2030.

“Through the implementation of TransKoM, a conducive environment can be created to increase the number of cooperative federations to be more competitive and sustainable,” he stated.

The main agenda is to develop the cooperative sector into a medium in improving the economic value chain, especially among the target groups.

Wan Junaidi said TransKoM would liberalise cooperative legislation to facilitate cooperatives to carry on business, improve the welfare of members, as well as strengthen enforcement of regulator law.

“I have been informed that the Malaysian Cooperative Societies Commission (SKM) will encourage cooperatives to move towards real business in the fields of construction, real property development and agriculture.

“There are several fields that we see cooperatives can get involved and make strategic alliances with government-linked companies or big companies to implement infrastructure or national projects,” he said.

He added that SKM will propose cooperatives to participate in investment of corporate businesses by acquiring shares in public listed companies.

Furthermore, the government will continue to strengthen talent and human capital development by attracting professionals and youths including graduates to become members and set up cooperatives.

“We want to empower training and capacity building programmes to members and change the perception of cooperatives.

“We also want to increase business and revenue income as it will indirectly help by giving back to members,” he said.

TransKoM will be launched by Prime Minister Tan Sri Muhyiddin Yassin on March 30.