KOPEL is a community Ecotourism Cooperative of Batu Puteh. KOPEL in a fragile business where is wildlife and nature is their key resources are affected with unpredictable weather and deforestation is beyond their control. Besides it, KOPEL also facing financial problems which management and operating expenses is more than KOPEL income. This is because the more activities KOPEL carry out, the more funds will be needed. To ensure KOPEL continues to operate in the future, KOPEL identify products that are complementary to the products and services available to attract customers.

From the case on KOPEL Bhd. (also known as KOPERASI PELANCONGAN BHD.), what issues that KOPEL Bhd. sustains its business operation are KOPEL Bhd. is financial sustainability of the co-operative. KOPEL’s main business is related to community-based tourism like homestay, boat riding for nature sight-seeing, and conservation activities. 

The challenge of this issue is KOPEL need to allocate resources strategically and make those resources as productive as possible using new financial and marketing model. KOPEL generated through funding from government agencies and NGOs.

KOPEL has to generate more revenues for the benefit of their members and stakeholders. 

KOPEL has not only provided its members with business profit which is dividend, but also social benefit, such as through provision of fund for homestay renovation and expansion, funeral donation, skills development, festival celebration, and sport activities. To sustain in its activities, KOPEL’s financial resources for development and diversification are mostly funded by several NGOs, JICA, WWF Malaysia & Norway, and Arcus Foundation. (160 words)

Based from my observation, KOPEL Berhad (stand for KOPERASI PELANCONGAN) is the Community Ecotourism Cooperative of Batu Puteh community and the main business of company is related to community-based tourism like homestay, boat riding fornature sight-seeing, and conservation activities. The problem facing by KOPEL Berhad now is about their financial sustainability of the co-operative. Although KOPEL Berhad are successfully generate income surpasses RM1 million, but they are using up to 80 percent about the total revenues to spend on expenditure in management and operation and the expenditure is keep increasing from time to time. The challenge of this issue is KOPEL have to overcome that financial problems and making more profit to all the shareholders from allocate their resource strategically and make those resource as productive as possible by implement new financial strategy and marketing model. KOPEL has not only provided its members with business profit (dividend), but also social benefit, for example through provision of fund for homestay renovation and expansion, funeral donation (khairat kematian), skills development, festival celebration, and sport activities. To sustain those activities, KOPEL’s financial resources for development and diversification are mostly funded by several NGOs, namely Japan nternational Cooperation Agency (JICA), WWF Malaysia and Norway, Arcus Foundation as well as through government conservation projects.

KOPEL Berhad was registered in July 2013 is located in the village of Batu Puteh.

KOPEL was set up to reverse the losses, to capitalise on ancient indigenous and traditional knowledge and culture, to save and create economic value and appreciation of the mega-diverse rich rainforests of the area, and in the process create a sense of hope for a sustainable future for the people of Lower Kinabatangan. The establishment of KOPEL started from initial cooperation with conservation project under coordination of MESCOT (Model for Ecologically Sustainable Community Tourism) in 1988 which involved various community-based programmes funded by three non-government organisations (NGOs), the WWF of Malaysia and Norway and Discovery Channel Television. To sustain in its activities, KOPEL’s financial resources for the development and diversification are mostly funded by Japan International Cooperation Agency (JICA), WWF Malaysia and Norway, Arcus Foundation as well as through government conservation projects like Sabah Forestry Department and Ministry. KOPEL also plan to cooperate with universities and government agencies through knowledge and skill enhancement program which may benefit the community involved in KOPEL. KOPEL’s plans for the future include development of the Eco Resort, ongoing work to strengthen community capacity and continue grow at a steady, sustainable pace.

KOPEL Berhad (Koperasi Pelancongan) is one of the Community Ecotourism Cooperative.  As we all know, the main product of KOPEL is related to tourism, conservation and agricultural and the key resources are wildlife and nature. KOPEL get their revolving fund from government, NGO’s and their activities that they offer to tourists for example catering, homestay and boat service. To sustain the business operation, KOPEL give some benefit for their members like social benefit which include funeral donation.  Besides, KOPEL strategy is to identify any products that are related to their product service. KOPEL also want to diversify their product to attract bigger market but they need to find extra fund. KOPEL also have the future’s plan which include development of Eco Resort, continue growth at a steady and others.  Last issue to sustain their business is about weather. They didn’t get any pay if the weather is bad. It is because they cannot do any activities. 

The other key of KOPEL Berhad is to sustain the operation is by the funding from the government agencies and the Non-governmet organization. Year by year Kopel Berhad have recieved funds from this both agencies. Since this company is operated based on nature, in other words eco-friendly, KOPEL Berhad had been under government funding for so long. To make sure the funding from government is still ongoing, this company also has to maintain its nature-based operation.

Furthermore, KOPEL Berhad also has strategic management as well as technical skills that created synergy to discover new opportunities for KOPEL survival. These are thanks to Hasim and Rosli for their expertise in their field of job.