KOTA KINABALU: Cooperative Commission of Malaysia (SKM) encourages the cooperative sector to venture other lucrative opportunities such as pharmaceutical, real estate, and equipments.
According to Sabah SKM Director, Umar Sarim Saidin, it is a loss for cooperative not to participate in these professions which promise better profits for cooperative members and communities.
“I also want the youth to venture the automotive profession, or to open premises for car repair, accessories, car wash and others since these are profitable business. I also urge the youth to take the opportunities in these businesses,” he said during the SKM Aidilfitri Open House.
Umar said, SKM will help by giving out loans through two fund assistance scheme for cooperatives with promising projects, as well as a grant assistance of RM30,000 to RM50,000 without the need for any collateral.
For loans from RM50,000 to RM1 million, he said collateral will be required with two percent interest, and six percent interest for RM5 million to RM10 million loans.
Umar Sarim also said cooperatives in Sabah have shown positive performance especially in term of public awareness to set up their own cooperatives.
This is proven through the increase of cooperatives operating in the state, he said, adding that cooperatives in Sabah have increased from 1,150 in 2014 to 1,223 up until June this year.
He also said in several months the number of cooperative members in the state has increased six percent with 338,000 members, equivalent to 10 percent of Sabah total population.
Accumulated stocks for cooperatives with fees are assessed to amount up to RM126 million, and their assets exceed RM700 million, while last year SKM had collected RM260 million in revenue.
“As of May, cooperative sector gained RM100 million profits and each year we target a six percent increase for gross profit,” he added.
He described the performance is a good indicator for Sabah cooperatives which have expanded and utilize its potential.
He also cited the success of Mukim Batu Puteh Cooperative in Sandakan and Ar Rahnu in Tawau which gained RM13 million income, while the four-year-old Koperasi Usahawan Tawau Berhad has opened five new branches. – SayangSabah