KUCHING: The Malaysia Cooperative Commission (SKM) expects the cooperative sector to contribute five and 10 per cent to the nation’s gross domestic product (GDP) by 2013 and 2020 respectively.

Its executive director Dato Mangsor Saad said this amounted to average output of RM800,000 annually per cooperative.

“The target is not to be achieved immediately but in stages. Those cooperatives whose output is RM10,000 a year can increase to RM100,000 easily and slowly to RM800,000.”

“Currently the cooperative sector only contributes one per cent of the GDP which is about RM6 billion of RM600 billion for the whole economy,” said Mangsor.

He was officiating at ‘Entrepreneurship Cooperative Seminar 2008’ held at the Islamic Information Centre here yesterday.

In Europe’s cooperative sector, the contribution can hit up to 25 per cent, and thus are important to economic development, he said.

“SKM was given new mandate to expand cooperatives sector and we target increase from the current one per cent to five per cent by 2013 and to 10 per cent in 2020.”

He added that this translate to having to increase the number of cooperatives in the country from 5,170 to 10,000 by year 2020.

He said that increasing the numbers of cooperatives alone is not sufficient if the output is not increased as well.

“We can increase the output by introducing opportunities to cooperatives for them to participate in economic activities, like the agriculture, service and manufacturing sectors.

“In agriculture sector, we try to introduce many things like using modern technology in food production, introducing jatropha and rearing of catfish.”

“In SKM we offer them loan up to RM10 million for them to involve themselves in these activities.

“We also give them assistance in term of grants for infrastructure cost, research grant of max RM300,000 and marketing grant of RM300,000 to per cooperative but they have to be assisted by technical agencies.”

The one-day seminar was attended by some 100 cooperative members.

During the opening ceremony, the commission gave financial aid were to Koperasi Kpg Melayu Tebakang Berhad – RM31,000, Koperasi SMK Tabuan Jaya Berhad – RM23,450, Koperasi SMK Sg Maong Berhad – RM21,000 and Koperasi Long Teru Baram Berhad – RM158,320.

SKM Sarawak director Mat Deris Jusoh was also present at the function.