Awam Hj Ramlan Kamsin
Maktab Kerjasama Malaysia Cawangan Sarawak
This exploratory study identified the major sources of cooperative funds and their uses as well as how their net profits were distributed after the necessary statutory deductions had been made. A total of 274 co-operatives in Peninsular Malaysia participated in the study. The profile of the cooperatives were identified from the feedback obtained through questionnaires to the cooperatives, while data on the sources and uses of funds as well as the distribution of net profits were sourced from the annual reports of the cooperatives, from 2003 to 2005.
The findings indicated that 83% of the funds of co-operatives were from internal sources, specifically from members' share capital as compared to only 17% from external financing by financial institutions. Furthermore, 57% of the cooperatives' funds were utilised to finance investment in assets, the most popular activity as compared to only 29% being used to undertake economic activities. In terms of the distribution of net profits, 60% of the cooperatives gave dividends on members' share capital, 52% of the cooperatives paid honoraria to board members and 50% of the cooperatives set up funds for their members' benefit. Providing Credit Services On The Socio-Economic Life Of Their Members: An Assessment