Madani Mart startup costs up to RM420k, foundation says no profit for trustees

 

Yayasan Madani today said each Madani Mart startup would cost its operator a maximum of RM420,000, including a one-time RM30,000 licensing fee.

In a statement outlining the financial commitments required to set up an outlet under the Madani Mart scheme, foundation manager Lutfi Ariffin said licensors would also have to pay an annual licence renewal fee of RM5,000.

They would also be charged an RM2,000 monthly “services fee” to cover Madani Mart’s system and operational costs, and corporate social responsibility.

On top of this, each Madani Mart operator is required to fork out RM150,000 for its initial inventory, while a full renovation for the premises is estimated to be around RM220,000.

“The renovation costs include a freezer, (display) shelves and other fixtures,” said Lutfi, adding the operator is free to choose their own contractor for the renovation works.

There is also a one-time RM50,000 consultant fee that licensors would have to pay to Yayasan Madani to cover training and guidance costs, CCTV installation, and continuous marketing support, among others.

“In total, the maximum amount of investment required to start as a Madani Mart operator is RM420,000, depending on the size and location of the premises,” Lutfi said.

‘All funding and transactions according to law’

However, the statement today did not mention the amount of royalties required.

This was despite an FAQ the foundation released stating that licensing fees and royalties are reciprocation for training, support, performance monitoring, system management, and supply chain development that Yayasan Madani will provide to Madani Mart licensees.

Lutfi said all the foundation’s funding and transactions are properly recorded and undergo an audit process according to the law.

There is also no distribution of profits to Yayasan Madani’s individual trustees, he added.

Yayasan Madani, a foundation with strong links to the corridors of power, recently launched its first Madani Mart in Kuantan, Pahang.

Prime Minister Anwar Ibrahim (left) and Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh (right)

The foundation was co-founded by Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh, who is also the chairperson, together with aides to Prime Minister Anwar Ibrahim, Kamil Abdul Munim and Ahmad Farhan Fauzi.

The trio are the only listed trustees of the foundation. - Mkini