Premier cooperatives should spearhead innovation and AI development - Ewon

6 June 2024

KUALA LUMPUR: Premier cooperatives in the country should develop Artificial Intelligence (AI) components and innovation in their operations and services, Minister of Entrepreneur Development and Cooperatives Datuk Ewon Benedick said.

He believes that premier cooperatives such as Bank Rakyat, Co-Opbank Pertama, and Petronas Cooperative have the capability to develop their own AI technology and innovation.

"At the ministry level, we have launched the Cooperative Digitalization Action Plan (DigiKOP) 2030, where we encourage all cooperatives in the country to adopt digitalization components in their operations, including AI.

"I want to see premier cooperatives such as Bank Rakyat, Co-Opbank, Petronas Cooperative, and Tenaga at the forefront to set an example and motivate the other 15,000 cooperatives in the country," he said.

He said this when interviewed by reporters after officiating a Dinner Reception in conjunction with the 2024 Asia Pacific Credit and Banking Conference, organized by the International Cooperative Alliance Asia and Pacific (ICA-AP), the ASEAN Cooperative Organization (ACO), and the National Cooperative Movement of Malaysia Berhad (ANGKASA), at Aloft Hotel, Kuala Lumpur, yesterday.

When asked whether the ministry has a specific allocation for cooperatives in AI development, Ewon said that currently the ministry does not have a specific allocation for AI for the cooperative movement.

However, he said that the ministry, through the Malaysian Cooperative Commission (SKM) and the Malaysian Cooperative Institute (IKMA), has support programmes to encourage cooperatives to adopt digitalization.

"Under SKM and IKMA, we have several guidance and financing programmes so that these cooperatives can meet current needs, including the Revolving Capital Fund that can enhance the productivity of cooperatives, including AI components," he said.

He hopes that this effort can be aligned with the People's AI Programme recently launched by the Prime Minister, Datuk Seri Anwar Ibrahim.

In this regard, he said that the planning should start now because AI for the People has been launched and should serve as a message to large companies, including premier cooperatives.

"I want cooperatives in Malaysia to be able to offer the same level of innovation in services as multinational companies and other government-linked companies (GLCs)," he said.

Earlier in his speech, Ewon said that so far, there are 15,809 registered cooperatives in Malaysia with a membership of over 7.2 million members, covering 20% of the country's population, with total earnings of RM64.6 billion in 2023.

"This clearly shows that the cooperative movement is one of the contributors to the country's economic growth.

"The Malaysian Cooperative Policy 2030 targets earnings of RM73 billion by 2030, where cooperative banks such as Bank Rakyat and Co-Opbank Pertama play an important role in contributing to that income," he said.-ends