SARA EXPANSION GIVES SMALL TRADERS A BOOST

By Vikneswaran Raman

KUALA LUMPUR, Jan 10 (Bernama) -- The government’s expansion of premises eligible for the redemption of Sumbangan Asas Rahmah (SARA) assistance is helping to strengthen the sustainability of small traders, including single-outlet grocery stores and traditional retailers.

Previously concentrated at major supermarkets and large retail chains, SARA redemptions using the identity card have now been extended to more small shops and independent outlets located closer to local communities.

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On Jan 5, the Ministry of Finance announced that the number of small shops participating in the SARA programme will be increased to 10,000 by the end of 2026 to complement existing supermarket branches. As of Nov 23 last year, more than 3,000 small shops were involved out of 9,200 registered premises.

Improvements to the programme have also led to a sharp increase in recipients this year, involving 8.1 million people with an allocation of RM8 billion, compared with 5.4 million recipients and RM5 billion in 2025.

T.S. Mega Supermarket manager Emilyn Teoh Mei Yeen said the Cheras outlet saw sales fall by about 30 to 40 per cent when SARA was limited to major supermarkets and retail chains, but business recovered after it was approved as a SARA partner about four months ago.

She said the store, which has operated for more than three decades, serves a community largely made up of senior citizens and B40 customers who previously complained about being unable to use SARA at the outlet.

“Many found it difficult to travel further or queue for long hours at major supermarkets. Now, transactions are more convenient and customers are clearly happier,” she told Bernama.

Teoh also commended the government’s efficiency, noting that the approval process took about two months, while sales proceeds are credited every two to three days.

“This helps our cash flow. Initially, we had one terminal, but a second was added after officers saw high SARA usage during their visit,” she said.

Another manager at the outlet, Hamidah Aliamaran, said participation in SARA has helped single-outlet stores and small traders remain competitive.

She described SARA as a ‘two-pronged initiative’ that eases the burden on low-income groups while boosting traders’ income.

“We see customers upgrading their purchases from cheaper rice to better-quality rice and from basic powdered milk to better options, because they have some additional allocation through SARA,” she said.

According to the SARA website, 14 categories of goods are approved under the programme, including rice, eggs, bread, biscuits, flour, cooking oil, canned food, instant noodles, personal care items, school supplies, household cleaning products, seasonings, medicines, and beverages such as milk, tea and infant formula.

The website also states that traders may contact Yayasan MyKasih for details on becoming SARA partner merchants, subject to terms and conditions.

A Bernama survey at the premises found customers checking their SARA balances credited yesterday and using them to purchase daily necessities.

In Perlis, Eco Jimat Supermarket owner Lee Zheng Yi said the expansion of SARA to grocery stores has increased small traders’ income while enhancing purchasing power among recipients.

“SARA ensures assistance is spent on basic necessities, encouraging more frequent purchases at local grocery stores, mini markets and supermarkets,” he said, adding that it helps keep aid funds circulating within the local economy.

In Melaka, retailer JB Thiganeeswaran, 38, who operates Tarzan Fresh Mart in Durian Tunggal, said the scheme should be continued as it supports both low-income households and the sustainability of local retail businesses.

Monthly SARA assistance for 2026 began on Jan 9 for five million household recipients and senior citizens without spouses, followed by 3.1 million single recipients on Jan 16.

Prime Minister Datuk Seri Anwar Ibrahim has also announced a one-off RM100 SARA assistance for all citizens aged 18 and above, to be disbursed on Feb 9.

-- BERNAMA