Empowering Cooperatives Sustainability: The Role of SKM Negeri Perlis

Cooperatives are established through government and community collaboration to increase wealth creation and social well-being within the community. Cooperatives have succeeded in small businesses, empowering women, the poor, and the community by offering economic benefits for its members and making this community able to face various shortcomings including capital, leadership, and talent. In Malaysia, the activities of cooperatives are monitored by Suruhanjaya Koperasi Malaysia (SKM). However, based on SKM statistic, it revealed that the performance of Malaysian cooperatives decreased year by year starting from 2016 until 2022. Thus, this study is motivated to identify the challenges faced by cooperatives and the role of SKM in monitoring and empowering the sustainability of Malaysian cooperatives, specifically cooperatives established in Perlis. Interviews were conducted with SKM Negeri Perlis officers, and their feedback was recorded and transcribed. The findings of this study revealed that cooperatives, which are owned and managed by their members, encountered several challenges, including low or inactive participation, an aging membership base, and restrictions on expanding their member pool. To overcome these issues, SKM plays its role in advising and monitoring the activities of cooperatives. SKM may provide alternatives and strategies including funding or other incentives to help cooperatives boost their performance and retain their survival. After all strategies have been implemented and the cooperatives are still having difficulties, the last resort is to suggest liquidation