Rural neo-endogenous development model and cooperatives’ supporting factors: A case study of Malaysia’s rural sustainability programm

Neo-endogenous development model has been a focus of many studies on future rural development policies for the 21st century wherein the supporting role of cooperatives may be acknowledged especially in terms of enhancing local capacity and establishing internal dan external network. In Malaysia, transformative rural development embodying the characteristics of neo-endogenous development model is embedded in several policies such as the GTP, ETP and RTP. However, the role of cooperatives in supporting neo-endogenous model through Sustainable Rural Development (SRD) is constrained by the limited involvement of households as cooperative members, the overt focus on economic activities and basic infrastructure, and the limited cooperation with external actors. This study identified five supporting factors of cooperatives in neo-endogenous oriented SRD, namely, fulfilling local needs, use of local resources and environment, innovation and use of modern technology, enhancing local individual and institutional capacity, and establishment of internal and external cooperation network. Primary data were gathered from a field survey of 227members of cooperatives in three villages involved in the implementation of SRD. The results of factor analysis pointed to three cooperative supporting factors for neo-endogenous model, namely, capacity and network cooperation, innovative utilisation of local resources, and formation of local initiatives. It is hoped that the findings will grant a new focus in the implementation and monitoring of SRD to ensure its sustainability.