Kota Kinabalu: Sabah’s 63-year-old cooperative, Koperasi Pekerja-Pekerja Kerajaan Sabah Berhad (Kopeks), is placing retirees at the heart of its post-pandemic recovery by systematically clearing RM5.2 million in long-overdue retirement refunds.
Kopeks Chairman Datuk Dr Saat Ag Damit revealed during the 48th Kopeks Annual General Meeting (AGM) at the Sabah International Convention Centre (SICC) on Monday that the cooperative inherited 585 overdue retiree accounts, a financial burden carried for years.
“Settling this amount in a single payout would have crippled our working capital. Instead, we introduced a phased repayment scheme, ensuring fairness while maintaining operational stability,” he said.
As of November, 531 retirees have enrolled in the scheme, with 490 receiving monthly payments and 41 accounts already fully settled.
“Kopeks now disburses RM226,500 monthly, with around 10 per cent of retirees completing repayments.
“All arrears are expected to be cleared within four years, after which refunds will return to the normal schedule,” Saat said.
He said the initiative reflects Kopeks’ member-first philosophy, as retirees rely on these payments for daily expenses, healthcare and family needs.
Beyond retiree repayments, Kopeks continues to serve 2,440 active members and maintains a strong RM31.6 million credit portfolio, with nearly 99 per cent of members still eligible for loans despite stricter banking regulations.
To reduce dependence on credit income, Kopeks has also diversified into high-impact ventures, including a 10.3-acre Menggatal land development project via a 50:50 joint venture expected to generate RM30 million in profits and restore dividend payouts of 20–30 per cent within three years.
The cooperative has also expanded its healthcare footprint through K-Care Kopeks Clinics, taken over between 2024 and 2025, generating RM249,565 in revenue; and strengthened investment earnings through IPO holdings, collecting RM418,350 from Cheeding Holdings Bhd this year.
Its Ar-Rahnu pawn service, operational since 2010, has generated more than RM2 million in cumulative profits, with plans to operate under Kopeks’ own brand to eliminate royalty fees.
“Strong governance, member loyalty and diversified revenue streams are key to Kopeks’ sustainable growth.
“By prioritising retirees, we honour past commitments while securing a resilient future for all members,” Saat said.
The AGM ended on a positive note, with members applauding Kopeks’ transparency and long-term financial planning.
