Parliamentary Select Committee Proposes More Small Retailers As SARA Partners

KUALA LUMPUR, June 22 (Bernama) -- The government has been urged to expand participation of small retailers, especially in rural and interior areas, as partners in the Sumbangan Asas Rahmah (SARA) programme, to prevent a potential downturn in business following the implementation of the aid scheme.

Special Select Committee on Domestic Trade, Entrepreneurship, Cost of Living and Agriculture chairman Cha Kee Chin said some small retailers were losing customers as aid recipients were required to shop at premises recognised as SARA partner shops.

He said the situation had caused spending previously made at village retail shops to shift to supermarkets or other premises that accept payments via MyKad under SARA.

He said the situation had seen spending previously made at village retail shops move to supermarkets or other premises that accept payments via MyKad under SARA.

“The government allocating RM10 billion this year. We do not want only large retail operators to benefit. we want all Malaysians to receive a positive impact from the SARA programme,” he said when presenting an explanatory statement on Report DR.10 Year 2026 on the participation mechanism of business partners and implementing agencies in the SARA programme.

At the same time, Cha, who is also the Rasah Member of Parliament, said the eligibility and technical requirements for becoming a SARA business partner were seen as burdensome, as many small traders lacked adequate training and guidance.

In addition, he said the use of point-of-sale (POS) systems and digital payments were also major obstacles to the participation of small retailers, especially in rural and remote areas, which lack equipment and technical knowledge.

Therefore, Cha said the committee had submitted 17 recommendations to the Ministry of Finance and Yayasan MyKasih, which include expanding participation of small traders and cooperatives as SARA business partners, reviewing eligibility requirements, providing training and guidance, and expediting payment of claims to business partners.

Other recommendations included ensuring that residents do not have to travel more than 10 kilometres (km) to reach SARA partner shops, intensifying promotion of the programme and considering the participation of hawkers at farmers’ markets and night markets.

Meanwhile, Cha said the number of small traders participating as SARA business partners had almost doubled to 5,893 as of June 16, compared with 3,000 previously, but continued efforts were needed to reach the target of 10,000 traders by the end of this year.

He also said a new initiative known as POS Terminal Deployment had been implemented to help boost the participation of small traders in interior areas.

“So far, 14 retail shops in the interior have been equipped with the POS Terminal Deployment, with the first implemented in Kuching, Sarawak,” he said, adding that Yayasan MyKasih has provided 2,000 sets of the facility to expand participation of small traders in the SARA programme.

Meanwhile, Khoo Poay Tiong (PH-Kota Melaka), during the debate on the statement, proposed that the government re-evaluate the implementation of the SARA programme, including the one per cent commission imposed on participating traders, to ensure greater benefits for small traders.

He said the matter should be given attention, particularly as some items sold by small traders had low profit margins.

“For example, subsidised cooking oil sold in retail shops has a profit margin of less than one per cent, but traders are required to pay a one per cent commission to MyKasih,” he said.

Datuk Siti Zailah Mohd Yusoff (PN-Rantau Panjang) proposed that night markets, farmers’ markets and rural cooperatives be included in the SARA programme ecosystem to strengthen the community economy and ensure that small traders are not further marginalised.

She said this was because efforts to help the people cope with the cost of living must be implemented fairly, transparently and in a way that benefits the entire local economic ecosystem, as some small traders had lost customers and were forced to close their operations.

Other MPs who participated in the debate were Kalam Salan (PN-Sabak Bernam), Mohamad Shafizan Kepli (GPS-Batang Lupar), Hassan Abdul Karim (PH-Pasir Gudang), Abdul Latiff Abdul Rahman (PN-Kuala Krai), Salamiah Mohd Nor (PN-Temerloh), Tan Hong Pin (PH-Bakri), Datuk Seri Shahidan Kassim (PN-Arau), Datuk Azman Nasrudin (PN-Padang Serai) dan Rodiyah Sapiee (GPS-Batang Sadong).

--BERNAMA