The country's cooperative sector is capable of moving in an integrated manner through the establishment of a federation involving the business model of merging cooperatives, said Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi.
Ahmad Zahid, who is also Rural and Regional Development Minister, said with a federation, the cooperative sector has great potential to boost the socioeconomic and well-being of the people.
He said the cooperative movement has now succeeded in becoming the third contributor to the national economy after the government and private sectors, based on on the total membership of 7.3 million people with a share capital and accumulated fees of RM16.5 billion.
“The government is confident that if the country's cooperatives can merge together through a federation, country's food security will be strengthened, in turn compensating for the increasing cost of food prices.
“This is because the business model through the merger of cooperatives can not only increase the production capacity of cooperative movement products and services through 'economies of scale', but can also shorten the supply chain by reducing the role and involvement of middlemen,” he said here today.
He said this when closing the National Cooperative Month 2023, which was also attended by Entrepreneur Development and Cooperatives Minister Datuk Ewon Benedick.
Ahmad Zahid, who cited the National Federation of Agricultural Cooperatives (NAFC), a merger of agricultural cooperatives in South Korea, as an example, said it was an apex organisation for 1,118 cooperatives with a combined membership of 2.1 million farmers who are the owners, users and controllers of cooperatives.
“The federation supports member cooperatives by providing a cooperative system for Korean farmers, the majority of whom suffer from the problem of weak production capacity and insufficient financial resources,” he said.
He said NAFC has successfully played an important role in South Korea's economic growth and developed into one of the most successful cooperatives in the world.
Ahmad Zahid also hoped that the national cooperative movement could be seriously involved in helping the government's efforts to lower the prices of basic necessities such as sugar, flour and cooking oil.
“The cooperative movement can also be an effective vehicle not only in the development of entrepreneurs, but also play a big role in helping the B40 and vulnerable groups deal with the challenges posed by the increase in the cost of living," he said.
He also expressed confidence that the Sabah Government under the leadership of Chief Minister Datuk Seri Hajiji Noor will always provide support and assistance to all efforts carried out by cooperatives to empower the economy and well-being of the people.
Source: BERNAMA News Agency
