CHAPTER 1: INTRODUCTION

CHAPTER 1: INTRODUCTION

1. BACKGROUND OF SCHOOL COOPERATIVES

1.1 The definition of a co-operative according to the Co-operative Identity Statement adopted in Manchester, United Kingdom on 24 September 1995 and used worldwide is an

“autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly-owned and democraticallycontrolled enterprise.”

1.2 Efforts to establish the co-operative movement in schools in the country began in 1953 when a motion was passed by the Malayan Co-operation Conference requesting that the government to possibly establish co-operatives in schools in the Malay Peninsular.

Through several subsequent meetings and discussions, the Ministry of Education and the Ministry of Agriculture (the ministry overseeing co-operatives at the time) decided to agree to set up co-operatives in schools on par with other co-operatives.

1.3 In 1965, Royal Professor Ungku A. Aziz reignited the idea of establishing school cooperatives and the proposal for its implementation was revived in 1968. His initiative as well as the co-operation and support from the Government led to the establishment of 9 school co-operatives in Malaysia in 1969. The role of the co-operative is to educate students to adopt the attitudes and practices of frugality and self-reliance, and to provide exposure to the basics of business appropriate to the socio-economics of students at the time. The 9 earliest school co-operatives established were:

a. Sultan Abu Bakar National Secondary School, Kuantan, Pahang b. Abdul Rahman Talib National Secondary School, Kuantan, Pahang c. Sultan Sulaiman National Secondary School, Kuala Terengganu, Terengganu d. Padang Midin National Secondary School, Kuala Terengganu, Terengganu e. Zainab National Secondary School, Kota Bharu, Kelantan f. Dr. Burhanuddin National Secondary School, Taiping, Perak g. Tengku Menteri National Secondary School, Changkat Jering, Taiping, Perak h. Dato’ Jaafar National Secondary School, Johor Bahru, Johor i. Iskandar Shah National Secondary School, Jasin, Malacca

1.4 According to Ministry of Education Malaysia: Management Briefing on School Cooperative Guidelines 2007, a school co-operative is a “social body that ventures into business to provide services to co-operative members and the school community.”

1.5 The Ministry of Education Malaysia (MOE) has recognised school co-operatives as a co-curricular activity. The MOE, through the Student Affairs Unit, has issued various circulars to process, strengthen, and consolidate the co-operative’s progress. Among them are:

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2. OBJECTIVES OF SETTING UP SCHOOL CO-OPERATIVES

3. PHILOSOPHY OF THE CO-OPERATIVE

The co-operative philosophy of “Working Together for the Common Good” is the tenet that must be held by all those within the co-operative. This is in line with the National Philosophy of Education (NPE) and the Malaysian Education Development Plan (MEDP). This is something that school administrators and teachers must be aware of as the co-operative’s progress requires unwavering support and co-operation.

4. NATIONAL ENTREPRENEURSHIP POLICY (NEP) 2030

The National Entrepreneurship Policy (NEP) is the nation’s long-term strategy to make Malaysia the quintessential entrepreneurial nation come 2030. This policy acts as a catalyst to Malaysia’s achievement as a nation that is united, prosperous and dignified, and sustains development with a more equitable and inclusive economic distribution, subsequently emerging as an axis of Asian economy. Five (5) main objectives have been determined under the NEP, namely:

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Taking into account global economic developments, current entrepreneurial achievements as well as the issues and challenges in creating a conducive entrepreneurial ecosystem in Malaysia, the NEP has outlined six (6) Strategic Thrusts supported by 19 Strategies and 62 Initiatives anchoring the implementation mechanisms of this policy. The six (6) Strategic Thrusts are:

5. MALAYSIAN CO-OPERATIVE TRANSFORMATION PLAN (TransKoM) 2020 - 2025

A strategic document outlining the transformative steps to empower the Co-operative Movement in Malaysia as a catalyst for socioeconomic development in Malaysia that is balanced, inclusive, progressive, and sustainable.

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5.1 Transformation Shift Goals

5.2 Co-operative Thrust Areas

Five (5) thrust areas have been developed under TransKoM to overcome the 10 key challenges identified and subsequently to ensure that the transformation shift is attained as follows:

6. NATIONAL ROLE AND POLICY

6.1 School co-operatives are organisations registered with the Co-operative Commission of Malaysia (CCM). CCM serves as a regulatory body to 14,629 thousand co-operatives in Malaysia, including 2,457 school co-operatives (CCM Statistics December 2020).

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Figure 1: Summary Statistics of Co-operatives by State 2020

6.2 Summary statistics of school co-operatives by state and target groups are as follows:

Figure 2: Summary Statistics of School Co-operatives by State 2020

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Figure 3: Summary Statistics of School Co-operatives by Target Groups 2020

6.3 Apart from CCM, school co-operatives are also subject to the Ministry of Education

Malaysia, which plays a bigger role in monitoring and coordinating co-curricular activities in schools. For schools other than day schools, school co-operatives are also regulated by programme governing bodies such as the MARA Secondary Education Division,

State Islamic Religious Councils, and the School Board of Sponsors.

6.4 The existence of co-operatives in school came into effect through the Ministry of

Education Malaysia release letter (Reference: KP(BS.HEP)8586/013 Vol. 6 (22)) dated 4 September 2007 that states:

“The Ministry of Education has decided that all secondary schools in the country will set up school co-operatives as one of the co-curricular activities in schools.”

6.5 Release letter KP(BS/HEP)8586/014/(15) dated 15 May 1999, among others, states:

“The school co-operative movement is recognised as one of the most important cocurricular activities in schools, in line with the recognition of co-curricular activities (Uniformed Units, Associations, Clubs and Sports) stated in official government documents such as the Education Act 1961, Cabinet Committee Report on Reviewing the Implementation of Education Policies, and the National Philosophy of Education (NPE).”

6.6 Release letter KP(BS/HEP8586/013(9) dated 8 August 2002 states the Education

Minister’s recommendation that school co-operatives that are not yet ANGKASA members to register for ANGKASA membership in order to benefit from the programmes run by ANGKASA.

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6.7 The introduction of co-curricular activities in an education system that involves school co-operatives is stated in the Government Gazette No. 5652 (school learning Course Rules 1956) dated 28 December 1967 which defines co-curriculum as a group activity, while Government Gazette No. 26, Vol. 41, dated 31 December 1997, Supplement No. 94, A.P.U. (A) 531 Legislation, Education Act 1996, Education (National Curriculum) Regulations defines co-curriculum as follows:

“co-curricular activities are activities that are planned as an extension of the process of teaching and learning in the classroom to give students the opportunity to add, consolidate, and practice the knowledge, skills, and values learned in the classroom.”

6.8 Structure of co-operative activities in schools are as follows:

7. CO-OPERATIVE COMMISSION OF MALAYSIA (CCM)

The Co-operative Commission of Malaysia (CCM) is an entity that was incorporated on 1 January 2008. The CCM was previously known as the Department of Co-operative Development Malaysia (DCDM) and is a statutory body under the supervision of the Ministry of Entrepreneur Development and Co-operatives (MEDAC).

Early on in its establishment in July 1922, the department known as the Office of The Director of Co-operation functioned to establish, register, and develop co-operative companies under the Co-operative Societies Enactment 1922 (FMS Cap. 97 of 1935) and was commissioned to drive and advance the co-operative movement.

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The Department of Co-operation Development name was changed to the Department of Co-operative Development Malaysia (DCDM) in the late seventies. The 1922 Enactment was repealed and replaced by the Co-operative Societies Act 1948 (Revised 1983).

The Co-operative Societies Act 1993 (Act 502) was subsequently enacted to consolidate the laws of co-operatives throughout Malaysia and came into effect on 22 January 1994.

8. CO-OPERATIVE INSTITUTE OF MALAYSIA (CIM)

The Co-operative Institute of Malaysia (CIM), formerly known as the Malaysian Cooperation College and the Malaysian Co-operative College, is the only co-operative training centre in the country.

When it was established in 1956, its financial needs were funded by the Colonial Welfare and Development Fund, while the government also provided a large contribution to encourage the development of CIM as a whole.

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In 1968, CIM was recognised as a statutory body through the Co-Operative College (Incorporation) Act 1968 passed by Parliament on 11 September 1968. Over time, Parliament passed the Co-operative College (Incorporation) Act 1968 (Revised 2019) (Act A1598), which came into effect on 5 May 2019 to streamline the governance of CCM in the planning and execution of innovative and creative programmes to support the development of the co-operative movement.

CIM has been placed under several ministries, among them the Ministry of Agriculture and the Ministry of Land and Co-operative Development. In 2009, CIM was placed under the Ministry of Domestic Trade, Co-operatives and Consumerism (KPDNKK) and currently, under the Ministry of Entrepreneur Development and Co-operatives (KUSKOP).

The Co-Operative College (Incorporation) Act 1968 (Revised 2011) [Act A1398] has provided for CIM as an institution that functions to develop and expand co-operative training and education in the country.

9. ANGKATAN KOPERASI KEBANGSAAN MALAYSIA BERHAD (ANGKASA)

Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA) was registered on 12 May 1971 under the Co-operative Societies Ordinance 33/1948. ANGKASA was formed following a proposal of the Second Co-operative Congress officiated by YAB Tun Abdul Razak Hussein, the second Prime Minister of Malaysia.

ANGKASA was appointed as a co-operative that represents the co-operative movement throughout Malaysia. On 23 May 1996, the declaration of this recognition was gazetted.

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According to [KTPK.(S07/49/1/9/: PN.(PU2)) 572/III]: “In exercising the powers conferred by Paragraph 57(2)(b) of Act 502 of the Co-operative Societies Act 1993, the Minister declared Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA) as the body that represents the Malaysian co-operative movement at the national and international levels,”

As the apex body of the national co-operative movement, ANGKASA is also a member of the ASEAN Co-operative Organisation (ACO) and the International Co-operative Alliance (ICA). ANGKASA President Datuk Seri Dr. Abdul Fattah Abdullah has also been appointed ACO President.

ANGKASA’s main function as contained in UUK 11 (1) is to ensure that its goals (ANGKASA) are achieved by providing services as detailed in the By-Laws (UUK). In UUK 11 (2), ANGKASA functions to:

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10. CONTROL BODIES FOR THE ACTIVITIES OF SCHOOL CO-OPERATIVES

The Ministry of Education Malaysia (MOE) and the Council of Trust for the People (MARA) are the control bodies for school co-operative activities.

10.1 Ministry of Education Malaysia (MOE)

The MOE through the Sports, Arts and Co-curricular Division (SACD) is the division supervising secondary school co-operative activities in Malaysia. SACD’s vision is Quality Education Begets Learned Individuals for a Prosperous Nation. Whereas, BSKK’s mission is to uphold a quality Education system to develop individuals to their full potential and fulfil the nation’s aspirations. SACD has greatly helped the school co-operative movement in Malaysia by supporting the development and expansion of school co-operative business as well as school co-operative tourism (PKS) at district, state, national and international levels. Through school co-operatives, student leadership can be nurtured in addition to producing students with the soul of entrepreneurship. The following are SACD’s objectives:

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Client Charter

We, of the MOE Sport, Art and Co-curricular Division (SACD) with complete determination and commitment pledge and promise to devote our complete energies and efforts to implementing the National Education Policy through sports, co-curricular and arts programmes of quality in schools through the following efforts:

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10.2 Majlis Amanah Rakyat (MARA)

The Majlis Amanah Rakyat (MARA), an agency of the Ministry of Rural Development, was established on 1 March 1966 under an Act of Parliament as a statutory body, resulting from a resolution by the first Bumiputera Economic Congress in the previous year. It is the Council’s duty to promote, encourage, facilitate as well as carry out economic and social development in the federations and especially in rural areas.

Therefore, all activities relating to co-operatives are fully regulated by MARA’s Secondary Education Division (BPM). The involvement of the MARA Junior Science College is a milestone toward attaining MARA’s vision of becoming a distinguished and revered trust organisation elevating the nation’s dignity. Its mission however, is to lead in the field of entrepreneurship, Education and investment for mastery of Bumiputera equity.

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11. ANGKASA MEMBERSHIP

11.1 Angkatan Koperasi Kebangsaan Malaysia Berhad (ANGKASA) is a co-operative in

Malaysia that is recognised by the government as a top-ranking or apex body of the co-operative movement in Malaysia. As a co-operative apex body, ANGKASA assists cooperatives that are its members in various aspects such as education, entrepreneurship and much more.

11.2 ANGKASA membership is open to all co-operatives in Malaysia. Co-operatives that wish to become members are required to submit to ANGKASA, the Membership Form which can be obtained at the website www.angkasa.coop, along with the membership fee of

RM30.00 for school co-operatives.

11.3 As ANGKASA members, co-operatives will receive various benefits, including being called to convene at ANGKASA’s State General Meeting (MAN) and General Assembly (MAPA) each year. As of April 2022, there are 10,463 co-operatives that are ANGKASA members, while 2,400 are school co-operatives.

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12. ANGKASA’S ROLE IN DEVELOPING THE SCHOOL CO-OPERATIVE MOVEMENT

The role of School Co-operatives is highly valued as a contributor towards achieving the National Economic Policy and parents are the most important contributors in realising this hope. The recognition of school co-operatives at the global level has witnessed this movement becoming a model and reference for foreign countries. Since the establishment of nine (9) school co-operatives in Malaysia in 1968, ANGKASA has successfully introduced many services for the use of school co-operatives until the present day, especially in the fields of education, training, and information. The courses offered are the main mechanism in shaping the identity, understanding, confidence, loyalty and integrity as well as commitment in being a co-operative with members.

In line with current needs and demands, ANGKASA frequently runs developmental programmes for school co-operatives. The annual National Co-operative School Excellence Awards (AKKS) and the School Co-operative Tourism Excellence Awards (AKPKS) organised by ANGKASA are places for school co-operatives to exhibit, source markets, build business networks as well as generate co-operative income at the national and international levels.

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