STR, Sara help boost sales for retailers and SMEs, says business leader

 

People can purchase essential goods through the government’s Sumbangan Asas Rahmah (Sara) aid initiative, which has increased to RM2,100 this year compared to RM1,200 last year.

PETALING JAYA: 

Retailers and small and medium-sized enterprises (SMEs) have seen a surge in sales thanks to the RM13 billion Sumbangan Tunai Rahmah (STR) and Sumbangan Asas Rahmah (Sara) aid initiatives this year, said a business leader.

Federation of Malaysian Business Associations adviser Ameer Ali Mydin said the cash transfers have helped boost sales for retailers and SME owners.

Ameer, who is also the managing director of the Mydin hypermarket chain, said the public’s increased purchasing power has seen sales at their business premises double each time STR and Sara payments were disbursed.

He said he expected sales at the 1,200 retailers nationwide under the Sara programme to continue to soar following the government’s decision to raise the allocation to RM200 a month starting next month, double the RM100 allocated from January to March.

The Sara programme allows recipients to use their MyKad to purchase essential items at participating supermarkets and retail stores nationwide.

“STR and Sara not only help the needy but also retailers, including small traders. The multiplier effect could provide a five-fold return on government spending,” he told FMT.

“This is beneficial to many Malaysians and helps alleviate the pressures of current challenges.”

Ameer Ali Mydin.

Ameer also urged retailers to equip their businesses with the latest technologies and systems so they can be selected to take part in the Sara programme.

“The government wants as many Bumiputera retail stores involved as possible, but there may be limitations because some retailers, especially small shops, don’t have the proper systems in place,” he said.

The Sara assistance rate for its 700,000 recipients has been increased to RM2,100 this year compared to RM1,200 in 2024, while the STR involves around 4.7 million households in various categories.

The Small and Medium Enterprises Association (Samenta) also acknowledged STR and Sara’s positive impact in easing Malaysians’ financial burden and boosting sales for retailers.

William Ng.

Samenta president William Ng said he hoped the government will extend the programme to more retail business owners to further stimulate the local economy.
“This could be implemented through e-wallets, which already have user and local retailer data,” he said. - FMT