RM20.4 million-strong co-op eyes oil and gas sector

SANDAKAN: Koperasi Green, one of Sabah’s oldest cooperatives, is looking to expand into the oil and gas sector in the East Coast Development Area of Sabah, particularly in Sandakan and Lahad Datu, following significant growth in its financial position and asset holdings.

According to its Chairman, Datuk Mohd Salleh Abbas, the cooperative’s financial position increased from RM4.5 million in 2007 to RM20.4 million in 2024, following governance reforms introduced in 2007 to improve efficiency and transparency.

“The development has enabled Koperasi Green to expand its business activities, strengthen its asset base and increase welfare assistance for its members and their families.

“The cooperative acquired a block of shoplots in Bandar Megah Jaya for RM4.9 million in 2012 and fully financed the construction of Rimba Point, valued at RM9.65 million, which was completed in 2025.

 “With the addition of Rimba Point, Koperasi Green’s fixed assets have increased to RM49.5 million, while the rental of its commercial properties has created an additional source of income,” he said.

The cooperative has also diversified its business activities to include personal and housing financing schemes for members, insurance services and the rental of commercial premises.

These ventures have contributed to an annual accumulated income of approximately RM3.13 million.

In terms of welfare, Koperasi Green provides RM3,000 in death benefits for deceased members and RM1,500 for the families of deceased members, as well as assistance for members hospitalised due to illness and those whose homes are affected by floods.

It also recognises academic excellence by awarding children of members who obtain at least six As in the Sijil Pelajaran Malaysia (SPM) examination.

“The cooperative’s proposed entry into the oil and gas industry was welcomed by the speaker, who described the move as a forward-looking initiative with the potential to generate new income streams and deliver long-term benefits to members.

 “Sandakan and Lahad Datu have been identified by the Sabah Government as oil and gas hubs, presenting opportunities for local businesses to participate in the industry,” he said.

Among the potential areas for Koperasi Green to explore are logistics and transportation, the supply of industrial materials and equipment, personal protective equipment (PPE), operational support services, hospitality and property rentals, as well as catering and food supply.

These opportunities are aligned with the Sabah Oil and Gas Services and Equipment (OGSE) Industry Roadmap 2026–2030.

Meanwhile, Deputy Chief Minister II cum Sabah Finance Minister, Datuk Seri Panglima Masidi Manjun encouraged Koperasi Green to engage with the relevant officers and Sabah Energy Sdn Bhd to strengthen its knowledge, skills and capabilities before venturing into the sector.

“Established in 1959, Koperasi Green has undergone various challenges throughout its operations, including fluctuations in business performance and the provision of welfare services to members.

“However, the governance transformation introduced in 2007 has helped strengthen its financial standing, expand its business portfolio and improve its capacity to provide assistance to members,” he said.

His speech was delivered by Assistant Minister of Finance II, Dato Sr Mohd Ishak Ayub during officiating the Koperasi Green Annual Meeting at Hakka Hall here on Saturday.

Therefore, he also urged members to participate actively in the cooperative’s general meetings by offering constructive suggestions, evaluating its performance and financial position, and proposing improvements to strengthen governance and ensure sustainable growth.

“I would like to congratulated Koperasi Green and its board of directors, led by Datuk Mohd Salleh Abbas, for their efforts in steering the cooperative towards a stronger and more sustainable future,” he added.

Masidi, who was among the cooperative’s early members when it was known as The Green Cooperative Society Limited, also expressed pride in its achievements and confidence in its future prospects.