Assessing the performance of co-operatives in Malaysia: an analysis of co-operative groups using a data envelopment analysis approach

This study assesses the performance of co-operatives in Malaysia by evaluating 56 out of the 70 co-operative groups. The productivity and efficiency of the groups were evaluated in the first- and second-stage analysis by employing the data envelopment analysis and Tobit regression model. Despite the financial and non-financial support by the federal government and perceived significant role played by the co-operatives in the country's development, the findings indicate that the performance of co-operatives have not been satisfactory. Only 19.6% of the groups under study were found to be efficient and the 'big co-operatives' that comprise less than 2% of total co-operatives in the country dominated among the successful ones. The results endorse the general perception that co-operatives in Malaysia are facing challenges necessitating immediate attention.