Transforming Rural Market Governance: Preliminary Insights on Cooperative Roles in Managing Tamu Desa in Sabah, Malaysia

Tamu Desa, a traditional rural market, is a key part of the local economy and culture of Sabah. This study explores the feasibility of cooperative-led governance as an alternative management approach for Tamu Desa, one that is sustainable and aligned with rural empowerment policies, using an exploratory mixed-methods research design. The data was gathered using a structured survey and open-ended questions among 41 respondents in 17 villages within Kota Belud, Sabah, Malaysia. The results indicate a general acceptance of cooperatives in the community, particularly in terms of their ability to enhance governance efficiency, stimulate economic activity, and serve as a platform for empowering youth entrepreneurship. However, the acceptance depends on the respondents’ prior knowledge of Tamu Desa operations, and some issues and challenges still exist. These challenges include role ambiguity, lack of cooperative literacy, and the risk of social conflict. The research hence highlights the need for a gradual implementation plan that focuses on hybrid governance structures, specific capacity-building programs, clear operational principles, and long-term involvement of communities. Cooperatives are not a panacea, but they represent a potentially effective strategy in inclusive, locally controlled market governance. The results provide stakeholders with insights into the rural development policy and current discussions on cooperative governance and institutional transformation in rural areas.