Invest up to 5 pct in human capital development, S’wak deputy minister tells cooperatives

BINTULU (April 10): Progressive organisations should allocate at least three to five per cent of their annual financial resources towards human capital development, including training, education and leadership competency enhancement, to ensure the sustainability of cooperatives.

Sarawak Deputy Minister of Youth, Sports and Entrepreneur Development Datuk Dr Ripin Lamat said some cooperatives still regard training as a cost rather than a strategic investment.

He stressed that such a mindset must change if cooperatives are to elevate their performance to a higher level.

“Some of the challenges faced by cooperatives today, particularly in governance, stem from weaknesses in management knowledge and understanding,” he said when officiating the Jom@Coop Turun Padang Ke Arah Memasyarakat Koperasi: Jelajah Platinum IKMa 70 Tahun programme at Kemena Plaza Hotel here yesterday.

Dr Ripin noted that issues such as the failure to hold annual general meetings, delays in preparing audited financial statements, weak compliance with by-laws and a lack of transparency in decision-making are often linked to low cooperative literacy among leaders.

As such, he said efforts to strengthen human capital through cooperative education are no longer optional but an urgent necessity.

“Continuous education will produce a line-up of cooperative leaders who are not only knowledgeable, but also strategic in thinking, highly ethical and capable of making sound decisions for the sustainability and growth of cooperatives,” he said.

He said this forms the foundation for building a resilient, competitive and relevant cooperative ecosystem in line with national development.

At the same time, Dr Ripin pointed out that the cooperative movement is no longer a small sector in the national economy, but has evolved into a key component of Malaysia’s people-centric economic ecosystem.

Currently, he said, there are more than 16,000 registered cooperatives nationwide with membership exceeding 7.4 million, sending a clear message that cooperatives are not merely economic institutions but a community-driven movement.

“Cooperatives provide a platform for people to unite, share resources and build collective economic strength,” he said.

Looking ahead, he stressed that cooperatives must be prepared to face new challenges by shifting from conventional approaches to more innovative, technology-driven models.

He said cooperatives should leverage digital platforms and e-commerce to expand markets, while utilising data analytics and artificial intelligence (AI) to better understand customer needs and make more informed decisions.

In addition, the adoption of automation systems and digital management can enhance operational efficiency while strengthening governance in a more transparent and systematic manner.

Dr Ripin also encouraged cooperatives to explore new economic sectors such as the digital economy, green economy, gig economy and innovation-based industries, which could open up new income streams, boost competitiveness and attract youth participation.

In the context of Sarawak, he said cooperatives hold immense potential in empowering community economies.

“With rich natural resources, strong local communities and opportunities in sectors such as community tourism, modern agriculture and small enterprises, cooperatives can play a more significant role as catalysts for local economic development,” he said.

He added that this year is particularly meaningful as it marks the Jelajah Platinum IKMa in conjunction with the 70th anniversary of the Malaysia Cooperative Institute (IKMa).

“For seven decades, IKMa has played a vital role in developing human capital and leadership in the cooperative sector.

“Thousands of cooperative leaders have benefited from various education and training programmes organised by IKMa,” he said.

This, he added, proves that the success of a cooperative does not depend solely on financial capital, but more importantly on knowledge, leadership quality and integrity in management.

“The ground engagement approach implemented through programmes like this is highly significant and impactful in enabling IKMa to directly engage cooperative members, understand on-the-ground realities and deliver knowledge and guidance in a more contextual and practical manner,” he said.