Co-ops need to improve strategy, management to stay competitive

The cooperative movement in Malaysia should not feel comfortable with the achievements to-date, including participation in high-impact commercial activities, but need to improve its strategy and management to continue to stay competitive.

Minister of Domestic Trade, Cooperatives and Consumerism, Datuk Seri Hasan Malek, said the issues that had hampered the movement until now were management, finance, leadership and the involvement of members and they needed to be handled effectively.

"The involvement of the co-ops in high-value activities, development of creative human capital, innovative and entrepreneurial culture and awareness of the changes in the environment need to be emphasised to propel the movement to a higher level," he said.

Hasan said this in his keynote address at the dinner and celebration in recognition of Cooperative Bank as a cooperative bank here on Saturday.

The text of his speech was read by the ministry's secretary-general, Datuk Seri Alias Ahmad.

He said the various aspects to be examined and refined included the expansion of business network, innovation in a challenging market and to find new sources that could add value to existing products and existing services.

"The financial services, which are crucial to the movement should be strengthened to ensure that the development of the co-ops proceeds at a steady pace with the aim of Malaysia to become a developed nation by 2020," he said.

To-date, there are over 10,000 co-ops nationwide with over seven million members. They generate revenue in excess of RM10 billion and provide more than 50,000 jobs.