233 cooperatives in the tourism sector, MEDC implements various initiatives to support VMY2026: Ewon

15 July 2024

KUALA LUMPUR: Minister of Entrepreneur Development and Cooperatives Datuk Ewon Benedick said that as of December 31, 2024, a total of 233 cooperatives nationwide are specifically involved in the tourism sector.

He said this includes 39 tourism-based activities such as hotels and village stays, self-care and health services, beauty centres, spas and salons, as well as crafts including batik and handicrafts.

"The Ministry of Entrepreneur Development and Cooperatives (MEDC), particularly through the Cooperative Commission of Malaysia (SKM), fully supports the government's decision to organize Visit Malaysia Year 2026 (VMY2026) by ensuring the involvement of cooperatives in the tourism sector.

"In an effort to enhance the participation and contribution of cooperatives in the tourism sector, MEDC through SKM has implemented various initiatives," he said during the question session of the House of Representatives today.

He responded to a question from Datuk Wira Hajah Mas Ermieyati Samsudin (Masjid Tanah) who inquired about the performance or involvement of cooperatives in the tourism sector in the national tourism industry, considering Visit Malaysia Year 2026, as cooperatives are more inclined towards the agricultural and wholesale sectors.

Ewon said that among the initiatives implemented by SKM is the Cooperative Exploration Program (JEJAK) 2024-2025 to stimulate cooperative activities involved in the hospitality industry, health care, and crafts.

He mentioned that SKM has allocated RM2 million to implement this program from May 2024 to May 2025 with the target of involving 160 cooperatives in the hospitality industry, health care, and crafts.

"Incentives of up to a maximum of RM12,500 are provided for cooperatives involved, covering the scope of product marketing and services as well as promotional costs.

"This programme helps enhance the capabilities of cooperatives through promotional activities and marketing of products and services," he said.

He also mentioned that SKM provides Development Assistance Grants to eligible cooperatives to strengthen and expand cooperative business activities, including tourism activities, with assistance of up to RM300,000.

"For the year 2023 and until May 31, 2024, a total of 13 cooperatives have been approved for development assistance grants in the tourism sector totaling RM881,000," he said.

Ewon stated that eligible cooperatives can also apply for the SKM Revolving Capital Fund (TMPSKM) up to RM30 million to develop or expand business activities in the tourism sector.

"For the year 2023 and until May 31, 2024, a total of five cooperatives engaged in tourism activities have approved funding totaling RM4.2 million," he said.

Furthermore, in addition to SKM, the Malaysian Cooperative Institute (IKMa) also organizes workshops such as Co-op Tourism: Cooperative Tourism Business Potential, Interactive Session For Asean Edu-Tourism Workshop 2024: “Cooperatives: Catalyst For Community Based Tourism Initiatives”; and the Cooperative Digitalization Empowerment Program (CODE) - CODE e-COTOURISM.

"MEDC has also allocated a sum of RM300,000 to SKM to assist in the Cooperative Halal Certification Programme for cooperatives in the tourism sector," he concluded.