The National Co-operative Policy was launched by YAB Dato' Seri Mohd Najib bin Tun Hj. Abdul Razak, the Prime Minister of Malaysia on 16 July 2013, consisting of 3 KRAs or Key Result Areas encompassing :

  •   Development of co-operative economic activities;
  •   Community Confidence;
  •   Good Regulation and Governance

The Second National Co-operative Policy (DKN2) was designed with a purpose to be a reference and guide in charting the actions and directions of co-operatives towards achieving Vision 2020. DKN2 for the period of 2011 to 2020 is a continuation of DKN1 which ended in 2010.

The National Co-operative Policy has outlined 5 Strategic Cores to be achieved which are :

  •   TS1: To stimulate co-operative involvement in high-value economic sectors.
  •   TS2: To enhance capabilities and abilities of co-operatives
  •   TS3: To create and improve the capabilities of co-operative human capital
  •   TS4: To improve community confidence on the co-operative movement.
  •   TS5: To strengthen co-operatives through effective monitoring and enforcement.

In achieving the designed policy, the Malaysian Co-operative Societies Commission has identified 5 high-value economic fields as EPP to be focused on, which are:

    •   Financial Services;
    •   Wholesale and Retail;
    •   Tourism, Personal care and Healthcare;
    •   Agriculture and Agro-based Industries;
    •   Farming

EPP: Financial Services

The financial sector is the largest contributor and is the back-bone to the national co-operative movement. As of December 2011, financial sector made up 80% of co-operative contributions. Strengthening co-operatives in Financial Services enable revenues to be increased from 64% to 70% by the year 2020.

For the purpose of increasing activities in this sector, co-operatives are encouraged to promote new financial products such as Ar-Rahnu, micro credit financing, merging Co-operative credits, Coop Card as well as Bank Rakyat Service Representative and other financing activities that may support the development of businesses and enterprises other than limiting to only personal financing.

EPP: Wholesale and Retail

The wholesale and retail sector became active in the co-operative movement since 1949 and is expected to continue in providing significant contributions in increasing co-operative output.

Current statistics revealed 50% of co-operatives are involved in the distribution sector, with adult co-operatives playing an important role in ensuring distribution of everyday goods especially controlled goods reach the people, notably in rural areas.

Merging and strategic cooperation among wholesale and retail co-operatives across the nation is expected to intensify and strengthen co-operative involvement in the sector.

Strenghtening co-operatives are important to ensure the co-operatives play their roles effectively in assisting the government in stabilising the prices of goods in the market.

The Malaysia Co-operative Societies Commission is carrying out a number of programmes to encourage participation of co-operatives in this field such as:

  •  Creating "COOP 1Malaysia" brand products for sale at premises owned by co-operatives.
  •  Creating a Distribution Centre according to state and district;
  •  Modernising retail shops under the TUKAR programme;
  •  Encouraging co-operatives to acquire the Controlled Goods Wholesale Licence
  •  Encouraging co-operatives to partake in the petrol station SMART STREAM Retail business, in addition to
  •  Encouraging establishment of supermarkets operated by co-operatives.

Blueprint for Co-operative Wholesale & Retail Sector 2016-2020

EPP: Tourism, Personal and Health Care

The tourism industry and related service activities such as personal and health care are an economic sector that can be ventured by co-operatives. It offers business opportunities especially for small and micro co-operatives which are largely available in rural areas.

Rural areas are rich in natural resources, an economy boosting asset for local co-operatives. Efforts will be increased to encourage rural co-operatives to be involved directly in the tourism industry, particularly those offering ecotourism products. Extreme activities such as mountain climbing, river rafting and jungle trekking are ecotourism products that may be explored. Co-operatives are also encouraged to be involved in homestay management activities which have received overwhelming response from the tourists, particularly from overseas.

Inter-co-operative collaborations in providing these tourism products, along with those involved in upstream and downstream activities as well as travel and tours management have enabled a comprehensive provision of tourism services. Supporting activities are being added to establish job opportunities and generate income. Opportunities are extended to co-operatives and the members in providing services such as tourist guides, cultural shows, catering of food and beverages, transportation and gifts.

In the field of health on the other hand, co-operatives may provide health services through community-based health service for the local community. Among the activities in the health services are providing elderly and disabled nursing services, care and promotional services as well as health education.

EPP: Agriculture and Agro-based Industry

Despite the expectation that the service sector is significantly contributing to the national economic development towards achieving the status of a high income nation, the agriculture and agro-based industry activities remain significant in ensuring an efficient and optimal usage of existing resources and to guarantee the edequacy and stability of the national food supply.

Co-operatives with lands in rural areas are driven to venture in this field. Apart from conventional agricultural activities such as cultivation and livestock production in ensuring consistent availability of staple food supply, easily accessible with reasonable prices, agricultural activities such as swiftlet breeding, aquaculture, cultivation of mushrooms and organic vegetables are high-value agricultural activities that can be ventured by the co-operatives.

In increasing its fruitfulness, co-operatives are encouraged to operate in a large scale by adopting modern technologies.


BlueprintDevelopment Plan Agriculture Sector and Cooperative Agro-Based Industry 2016-2020 .

EPP: Plantation

In the national plantation sector, it is estimated that 100,000 hectares of oil palm plantations will be replanted. A total of 1,362 (19%) co-operatives involved in plantation activities may benefit from this opportunity. With the strength of existing capital, the plantation co-operatives and those with lands are encouraged to develop the plantation sector through strategic affiliations or collaborations. Through affiliations, co-operatives venturing into small scale farm management operations and plantation co-operatives are encouraged to execute nursery operations and provide oil palm seeds to local plantations.

The plantation co-operatives have successfully served as a mentor in assisting other co-operatives to develop their plantations in cluster. Co-operatives also needs to collaborate with other government technical agencies such as the Malaysian Palm Oil Board (MPOB) and other technical agencies to enable plantation co-operatives to venture into new fields such as biotechnology and herbal-based businesses.