Co-operative is a business entity established with voluntary participation to enhance the economic status of members, communities, and the country. As the third significant contributor to the nation's economic, due attention is essential in addressing some issues related to co-operative performance. Among these issues was the inability to meet the goals of the National Co-operative Policy II (2011-2020) as well as the low level of contribution to the country's GDP, despite various support provided by the government. Based on the literature, marketing capabilities are predicted to enhance co-operative performance, but less research has been conducted on this relationship, particularly in the Malaysia.Thus, 500 questionnaires were distributed to randomly selected co-operatives in Malaysia. In all, 133 sets of questionnaires were successfully collected, which showed a 27 percent response rate. This study utilises SPSS software to perform the required statistical analysis of the data survey. This study uses a simple random sampling method to select a sample based on a list of registered co-operatives from the Malaysian Co-operative Commission. Thus, this study found the marketing capabilities has positive and significant relationship with co-operative performance. The evidence from this study suggests that the co-operative needs to develop the marketing capabilities in order to enhance performance.The findings of this study will help the government to streamline the co-operative sector in Malaysia with the strategic planning and policies so that the co-operative sector would be stronger, competitive, and able to improve performance and contribution to economic as well as GDP of the country.