Memorandum to SKM on 21 April, 2011 – Majulah Koperasi Makin Kaya (MK2).
In conjunction with the half day forum by SKM on 21 April 2011 and the speaker - Executive Chairman of SKM on "
'TRANSFORMASI KOPERASI SELARAS DASAR KOPERASI NEGARA (DKN)
2011-2020, KPSB would submit a Memo to the speaker and SKM.
Preamble:-
The intention of this memorandum is to see that Sabah cooperative movement would progress in line with the national movement and take advantage of all the special circumstances in Sabah to bring forth greater improvement to the livelihood of the people especially in the business and economic front to generate wealth for all the people especially those neglected lots. Wealth needs to be created before we have something to share.
Koperasi Pengguna Sabah Bhd is a multi racial and multi religious unit so synonymous with 1Malaysia hence we need to be given more than ample attention and support to nurture it to be the model in Sabah and Malaysia.
As a guideline, we would have to deal the following issues:-
1. Introduction of the koperasi movement in Sabah:-
1.1 Our Strength
- our number of coops and the members concerned if properly motivated can bring about greater synergy of advancement in all areas.
- Our opportunities in key areas in Sabah need to be exploited and utilized
- Our untapped sectors largely in the idle land and the shores for viable projects.
- Our new approaches applying blue ocean strategy and proper researches.
- the support from the Government and SKM should be seen forthcoming and timely.
1.2 Our Weakness
- Lack of capital for ventures and start up operations for individual new cooperative societies as such fund need to be accessed apart from members’ shares which can be limited and slowly building up resulting in lost opportunities and efforts.
- Lack of business leadership and quality of leadership as the exco or ALK would consist of people of diverse background and experiences that need to be sharpened in a business environment as a corporate group acting cooperatively. New values are desirable..
- Lack of business development as in every new cooperative societies time would be needed to develop the businesses concerned especially new ones.
- Lack of business researches is a hindrance to timely progress profitably as researches are expensive and trials processes are required.
- Lack of banking and financial support is obvious cooperative societies unless such bodies are sponsored by the state or federal governments as linked agencies.
- Lack of working papers and cost and quality thereof is another disadvantage to early entry to any business that needs the SKM to grant sanction.
1.3 Our challenges
- For each new cooperative society, there are inherent challenges and such challenges are not easily surmountable unless all the ALK and members play their roles well. In such challenges, we are competing with others in the business environment and resources are needed at the right time and right place.
- In a new set up, we have to adopt ourselves to leadership where disagreement would prevail and we may have to settle for simple majority rather than total consensus. This is the time when leaders are tested to the full to steer the cooperative society concerned.
- We need to steer ourselves to a position of control for a forseeable period as continuity of any intention, proposal, project is essential to nurture any development to a viable phase to reap the fruits of our efforts for the mutual benefit of all in the cooperative society.
1.4 Our potentials
- The potentials of all members must be exploited but it needs resources to sustain such development to maximum level.
- The training and exposure must be self monitored amongst the members with a variety of skills, talents and gifts for sharing to make contribution to the cooperative society.
- The potential of each cooperative society depends on members’ involvement.
2. The threats too must be addressed:-
2.1. In the business world, there are always risks and threats from within and without. While we may avoid the risks, threats are less visible. Therefore, we need to have a system capable to address both risks and threats wherever they may emerge.
2.1.1 Image (threats)
In the Chinese press in Sabah (1st April, 2011), it was revealed that the koperasi movement is held in contempt as it was reported that most societies were cheats as per the Minister concerned. When I first approached some of my acquaintances/business people, that kind of image was given to me. So we need to address that as we move on in business. What was reported is definitely inaccurate and uncalled for and have actually defamed the cooperative movement in Sabah. We hope SKM and the Minister concerned must now address this threat as it is an image hard to be erased now to enable the cooperative societies movement to move to a higher level in years ahead namely 2011-2015. A copy of the Minister speech is attached for reference as the reported item in the Chinese press is at variance of the said speech. Was the report based on the Press conference with the said Minister?
2.1.2 Confidence and assurance
Bearing in mind of the threats and risks in business, we need to have to overcome that with confidence and assurance. With confidence and assurance, the threats can be faced off on the way to success. We need to identify the ingredients of the confidence and assurance in the cooperative socieities movement in the context of leadership, administration, and transparency.
2.1.3 The role of SKM, Angkasa and MKM
Such threats must be spelt out by the SKM, Angkasa and MKM as their roles in gaining confidence and assurance for the cooperative societies movement and merely changing of new laws and new regulations may not bring out such confidence or assurance. Sometimes, too many changes not properly thought out may be themselves hindrance to the strengthening of the movement. Grey areas must be trashed out while the strong points should be monitored to bring about the desired results. Perfection and practicality need to be addressed at all times in good and bad times.
3 Steps forward in Sabah
What should we do in Sabah so that the expected performance of the cooperative societies movement can be an engine of growth that can be sustained. The country has grown mainly due to the micro and small and medium business entities moving on to be big business enterprises. It is known Sabah cooperative societies movement has lack behind in all sectors of the business environment as per records revealed by SKM and the Ministry of Domestic Trade Consumerism and Cooperative (KPDNKK) in term of the national movement and the general economy sector. We really need to move forward in big leap forward stance and I would suggest some measures to be implemented for Sabah cooperative movement in paragraph 4 below.
3.1 Rising trend of population
With fast rising trend of population, cooperative societies movement is the answer to fill in the gaps of supplies and demands by internally generated developments in so many areas especially the five sectors already identified namely retail and wholesale trade, financial, tourism, farming and agriculture.. There are still some areas to be considered for Sabah such as transportation, education, health, forestry and energy.
3.2 New Areas and new approaches in Sabah
There are certain areas in Sabah that need to be enhanced and accelerated in new approaches of development. I am also attaching a memorandum (3BF) handled over to the Angkasa Sabah Branch for attention and action to boost the cooperative societies movement in July 2010.
4. Recommendations for Sabah by KPSB
4.1 To boost research and development for the business communities in Sabah especially and Malaysia in general, SKM in collaboration with KPDNKK, Angkasa and MKM to be managed by KPSB, KPSB suggests that a Think Tank on businesses and business library be established in Kota Kinabalu.
It would be appreciated that a Bureau of Businesses (BB) be in place for the cooperative societies movement which can link the authorities and the cooperative societies movement in all businesses present and yet to be started. The BB would assist all members of the cooperative societies movement in research and development to facilitate enhancement of new businesses, new ventures, joint ventures and new systems as in any link up wherever possible.
4.1.1 It would be appreciated that SKM would pay for any common project paper to be commissioned by SKM on the fundamental issues for any particular project, and the various cooperative societies interested to participate such projects make appropriate amendment to the said project papers. In such an approach, the common projects in different areas can be expedited with saving in costs of the said project papers without duplication of effort.
4.1.2 It is also a viable proposal for the SKM via the BB to invited all cooperative societies to participate in any pre-approved projects to allow immediate implementation of such projects with appropriate funding permitted subject to minimum terms and conditions as the monitoring would be in place by SKM.
4.2 A common building where all newly formed cooperative societies be invited by allocation of an office space to share all the common facilities in the same building while working in tandem to boost the affairs of the Sabah Cooperative movement in term of communication and joint ventures in whatever projects to be undertaken. Each cooperative society would be charged nominally after the first year.
4.3 All members of the central executive committee or ALK be given a certain amount of monthly allowances and attendance fees for the first three years so that they would work hard for the setting up of the core business plus other ventures. This would also ensure commitment by attending ALK meeting to allow quorum for decisions to be made properly. Some of the ALK do have to travel a distance to perform their duties.
5. Dasar Koperasi Negara (DKN 2011-2020).
It is very good to have a national cooperative societies movement policy to steer the movement forward.
In the DKN, it is mentioned how other countries are identified in their respective performance, and we hope Malaysia especially Sabah can be engineered in that kind of direction to enable the csm to be in a recognizable position to be acknowledged.
It is a distant third as the engine of economic growth for the CSM in Malaysia when we consider that Malaysia has about 8,000 cooperative societies when Malaysia has almost a million registered companies with about 1,000 of them as public listed ones. The strength of the Malaysian economy depends on the business communities assisted by the political will. If the strength in the economy depends largely on the 1,000 public listed companies – many of which are also related to government linked ones – then 8000 public cooperative societies also strongly supported by the Government with about 7m members should be encouraged to do as well as the other counterpart in the economy.
With this encouragement of the potential of the CSM, we need to move very focused on various fronts with the blue ocean strategy not to be hindered by the lack of anything as aforesaid but empowered by our common desire to succeed well in business assisted by the political will of the people.
The Ministry of Domestic Trades Cooperative Societies and Consumerism together with the others under that should now strive forward in leaps and bounds not only competing within Malaysia with other business groups but face the global challenge with confidence possibly with the assurance and assistance of the global alliance of the cooperative societies.
Let the Malaysian Cooperative Societies Movement be part and parcel in significant portion in the great trading nation Malaysia.
Majulah Koperasi Makin Kaya (MK2)
Prepared by Joshua Y. C. Kong
Chairman 2009 -2011
Ps English is the International and business medium
