KALABAKAN: The cooperative movement in the State is urged to seize opportunities to explore modern technology and new sectors, including food security and food supply resilience, to increase income while benefiting its members.
Sabah Director of the Malaysia Co-operative Societies Commission (SKM), Awang Rusli Mohammad, said SKM provides various forms of assistance and financing that cooperatives can take advantage of to expand their respective business activities.
He said SKM provides loans of up to RM30 million to eligible cooperatives with the potential to expand the use of modern technology in their operations.
He added that in the area of food security, cooperatives could venture into activities such as cattle, goat and chicken farming to reduce dependence on food supplies from outside the state.
“SKM provides loans of up to RM3 million at an interest rate of one per cent for activities related to food security, subject to the stipulated requirements and financing facilities,” he said.
Therefore, he hoped that cooperatives would take advantage of these opportunities to diversify their economic activities, generate profits and subsequently provide dividends to their members.
“The surplus profits of cooperatives can also be used to implement welfare programmes, such as education funds for members’ children and welfare assistance to help members facing difficulties,” he added.
He revealed that, so far, three to four cooperatives had already applied to venture into the sector, and SKM expected approvals for food security programmes to be granted this year.
Awang Rusli said this to the media after officiating the First Income Distribution Ceremony of Koperasi Pembangunan Murut Kalabakan Tawau Berhad (KPMKTB), amounting to RM235,000, at the Felda Kalabakan Tengah Office here on Saturday.
Also present was KPMKTB Chairman Asfaliza Batan.
Meanwhile, Awang Rusli said Sabah currently has 2,047 cooperatives, but only about 60 per cent are actively involved in various activities, while the remaining 40 per cent that are inactive comprise newly established cooperatives, dormant cooperatives and cooperatives that no longer have any activities.
He said cooperatives in Sabah are involved in various sectors, including finance, wholesale and retail, construction, livestock farming and tourism.
He also said the tourism sector has significant potential for the cooperative movement to explore, particularly in supporting the state’s preparations for Visit Sabah Year 2027.
“We need the cooperative movement to move in tandem with the state government’s aspirations to provide attractive tourist destinations and proper logistical facilities for tourists,” he said.
Meanwhile, Awang Rusli also urged cooperative board members to improve their skills through training and courses organised by the Malaysia Co-operative Institute (IKMA), as well as to explore new areas of business.
“My advice is that cooperatives must not give up. We need to move quickly and do business. At the same time, give young people opportunities to come forward as leaders in our cooperative movement,” he said.
