Its president, Arriffin Mansor, told FMT the zero-to-minimal growth was mainly due to lack of proper management by the Malaysian Cooperatives Commission (SKM).

“The cooperative sector has over RM380 billion in assets.

“But it is an over-regulated sector as everything needs to be approved by SKM, even projects to be carried out by the cooperatives.

“There is also bound to be a conflict of interest at some point as some attached to SKM may become involved in projects carried out by various cooperatives.

“What we need is more than one regulator for the sector to grow properly,” Arriffin said.

Koperasi Ukhwah Malaysia chairman Mustapa Kamal Maulut suggested that there be a separate body governing the development of cooperatives in the country.

He said SKM should only oversee the registration of members and enforcement activities.

“The development part of the cooperatives should be separated and regulated under the purview of the prime minister’s office.

“This will ensure members are properly trained and good growth can be achieved,” he said.

SKM was formed on Jan 1, 2008. It was formerly known as the Department of Cooperative Development (JPK).

There are more than 11,000 cooperative organisations in Malaysia, with over 11 million members coming under SKM.

The majority of its members, about 90%, are Bumiputeras.

The cooperative sector has been mooted by the government as the third largest economic engine to drive the nation’s growth to achieve Vision 2020.

It has been reported that the sector contributes less than 5% of Malaysia’s current gross domestic product (GDP) so far.

FMT has contacted SKM and the National Cooperative Movement (Angkasa) for their comments and is waiting for their response.