KUALA LUMPUR: The significant contribution of cooperatives to the country's economy should not be underestimated, say economists.

Putra Business School economic analyst Associate Prof Dr Ahmed Razman Abdul Latiff said that cooperatives play a crucial and indispensable role with their substantial impact.

"Cooperatives have a widespread influence across various sectors of society. One of their standout advantages is inclusivity. They serve people across all income levels and diverse groups, including farmers, retirees, and specific community segments," he said when contacted.

Razman added that cooperatives are instrumental in improving the livelihoods and quality of life for their members.

Universiti Kuala Lumpur Business School economic analyst Associate Professor Aimi Zulhazmi Abdul Rashid noted that, according to data from the National Cooperative Movement (Angkasa), approximately 20 per cent of the Malaysian population-about one in every five people-is a member of one of the 15,809 registered cooperatives in the country.

With 7.2 million members, this is a significant figure.

"Cooperatives are established in both rural and urban areas, creating support networks to meet the social, economic, and cultural needs of the community. When a cooperative succeeds, it benefits the entire community through employment, investment opportunities, collaborative growth, and a more equitable distribution of wealth."

He also emphasised that cooperatives aim to serve their local communities, providing goods and services while also setting an example of good business practices.

"When a community invests in cooperatives, participates, and supports them, it strengthens the community and enhances overall wealth.

"Additionally, cooperatives offer education and training for their members, employees, and representatives, enabling them to contribute effectively back to the community," he added.

According to Angkasa, as of December last year, there are 15,809 registered cooperatives in Malaysia with 7.2 million members.

These cooperatives have total assets of RM165.9 billion, RM17.4 billion in shares or fees, and a revenue of RM64.6 billion.

Earlier today, Prime Minister Datuk Seri Anwar Ibrahim, in his speech at the National Cooperative Congress 2024, announced an additional RM6 million to boost the development of cooperatives in recognition of their contribution to the country's economy.

Anwar said the funds would be channelled through Angkasa for various initiatives.

Of the total, RM2 million would be allocated to Angkasa by the Ministry of Domestic Trade and Cost of Living, and another RM2 million from the Implementation Coordination Unit (ICU).

He also announced new allocations from the government for the cooperative movement, namely RM1 million for Asean cooperative programs throughout Malaysia's chairmanship next year, as well as RM500,000 to be channelled to mosque cooperatives and another RM500,000 to enhance the competency of cooperatives in rural areas.

https://www.nst.com.my/news/nation/2024/07/1082142/economists-significant-contribution-cooperatives-should-not-be