The Asean Journal of Knowledge Contribution

ISSN: 2286-828X
Vol. 1, No. 1 (January 2015) 01-09

FACTORS CONTRIBUTING TO SUCCESS TO THE EXCELLENT CREDIT COOPERATIVES

IN MALAYSIA, SPECIAL FINDING ON ISLAMIC FINANCING PRODUCT
Mustapa Kamal
Chairman of Cooperative Ukhwah Malaysia Berhad &
Ph.D for Sultan Idris Education University, Malaysia
Email: datoserimustapa@ukhwah.com.my
Web: www.ukhwah.com.my
Nor Saadah Bt. Hj. Mustafa
Institute of Al-Quran Tijarah, Malaysia
Prof. Dr. Abdul Jumaat B. Mahajar, Dr. Abdul Raheem B. Mohamad Yusof,
Assoc. Prof. Dr. Nek Kamal B. Nik Yeop Yunus
Sultan Idris Education University, Malaysia
Abstract
Total numbers of credit cooperatives in Malaysia now are more than 588 of more than 10,087 registered society with
a total membership of more than 7 millions people, who are eligible to receive a credit cooperative loan facility. The
purpose of this research is to identify outstanding entrepreneurial attitudes possessed by members of the Board of
excellent credit Cooperative to be the role model to other members of the Board of Cooperative since there are
various obstacles in running the credit cooperative whether from the government policies or external competitions.
The methods used in this study are a questionnaire method using instruments adapted from questionnaires
Entrepreneurs Perception of Success Inventory (EPSI). Of 588 registered credit cooperatives, only 35 cooperatives
managed to qualify in the category of best 100 cooperatives listed by the Cooperative Commission of Malaysia, with
a total population is 350 credit Cooperative Board members. Variable tested was the phenomenon of credit
cooperatives success as the dependent variable with nine dimensions as the independent variables. They are
difficulty goal setting, goal clarity, action oriented personality, circumstances oriented personality, planning
knowledge, leadership knowledge, management knowledge, motivation and Islamic financing. Data were analyzed
using SPSS version 21, tests are conducted prior to factor analysis and correlation analyses found were significant
for seven variables. Regression model can be built and the most dominant variables affecting the success of credit
cooperatives is setting clear goals with relationship strength is 25% of the tested variants.
Keywords: 35 excellent credit cooperatives; Entrepreneurs Perception of Success Inventory (EPSI); goal setting,
personality; knowledge; motivation and Islamic financing.
1.

Introduction

The ability of the cooperative movement to restore global economic crisis was proven. The principles and the values
brought about by the cooperative movement is a key pillar of the success of the cooperative movement around the
world, Smith & Ross (2006). The establishment of cooperative banking in various forms such as credit unions,
building societies and cooperative banks focusing the needs of the members has managed to carry out financial
activities to their members wisely. Excessive risk-taking banks such as private banking system that eventually led to
the institution's problems when the economic crisis hit the world. Commercial banks may face difficulties due to the
individual's perception about the big risk when performing loans due to interest rate variable (Chong, 2009) during
the financial crisis. Meanwhile, credit cooperatives can enjoy the increased of business from members and should
take this golden opportunity and offer additional services or other benefits to members of the cooperatives. Housing
cooperatives may be able to identify the accepted impact as the price of cement, brick and steel are increased, and
consumer cooperatives need to improve the quality and the value of their products.
*

According to Malaysian Cooperative Commission (2012) in Table 1, the total number of registered cooperatives in
Malaysia is 10,087, Cooperative with the most members is the credit cooperative 1.7 millions members, the number

The material presented by the author(s) does not necessarily portray the viewpoint of the editors and the management of The
Asean Journal of Knowledge Contribution. Any remaining errors or omission rest solely with the authors of this paper.
Citation: Mustapa Kamal, Nor Saadah, Abdul Jumaat, Abdul Raheem, Nek Kamal (2014). Factors Contributing to Success to the
Excellent Credit Cooperatives in Malaysia, Special Finding on Islamic Financing Product, 1(1), 01-09.

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THE ASEAN JOURNAL OF KNOWLEDGE CONTRIBUTION

Volume 1, Number 1; January 2015

Contents

Page : 01-09
Factors Contributing to Success to the Excellent Credit Cooperatives in Malaysia,
Special Finding on Islamic Financing Product
Mustapa Kamal, Nor Saadah Bt. Hj. Mustafa, Prof. Dr. Abdul Jumaat B. Mahajar, Dr.
Abdul Raheem B. Mohamad Yusof, Assoc. Prof. Dr. Nek Kamal B. Nik Yeop Yunus
Page : 10-18
Spatial Visualization Ability Among Apparel Design Students at University Putra
Malaysia
Rosmawati Bt. Mamat, Arasinah Bt. Kamis, Prof. Dr. Ramlee B. Mustapha
Page : 19-28
The Resilience Concept of Islamic Entrepreneur and the Promoting of Islamic
Financing Products to Credit Cooperative in Malaysia
Mustapa Kamal, Nor Saadah Bt. Hj. Mustafa, Prof. Dr. Azham B. Md Ali, Dr. Ahmad
Zahiruddin B. Yahya
Page : 29-38
Analisis Model Pencapaian Matematik Berasaskan Transisi Dengan Penerapan
Orientasi Pembelajaran Matematik (OPM) : Pendekatan Pemodelan Kuasa Dua
Terkecil Separa
Nor Hashimah Bt. Abu Bakar, Prof. Madya Dr. Zulkifley B. Mohamed
Page : 39-54
Modus Operandi Penambahbaikan Instrumen EPSI dan Status Penilaian Koperasi
Kredit di Malaysia, Terciptanya Instrumen EPSI Versi 2013
Mustapa Kamal, Prof. Dr. Sahandari Gani B. Hamzah

Page : 55-60
The Impact of Beliefs and Attitudes Among Job Seekers Reaction in Clicking on Ads
and Applying for a Job via the Internet in Malaysia
Faizan Iza Bt. Zainuddin, Dr. Suriani Bt. Abdul Hamid, Dr. Jamal @ Nordin B. Yunus