Samenta welcomes expansion of Sara retail network to 10,000 outlets

KUCHING (Jan 19): The Small and Medium Enterprises Association of Malaysia (Samenta) has welcomed the government’s announcement to expand the Rahmah Basic Contribution (Sara) retail network from 3,000 to 10,000 outlets by end of the year.

Samenta president Datuk William Ng said the expansion marks a significant milestone in ensuring that the RM8 billion allocated for Sara this year serves as a safety net for the 8.1 million recipients while also supporting small and medium enterprise (SME) retailers.

“While we support this expansion, we urge the Ministry of Finance and Yayasan MyKasih to ensure that the onboarding process for these 7,000 additional shops is seamless and free of bureaucratic hurdles.

“We also call for technical support including handholding for elderly or less tech-savvy shop owners to manage the MyKad payment terminals. We also hope that reimbursements to these retailers are processed swiftly to maintain their cash flow,” he said in a statement on Monday.

According to Ng, the limited number of 3,000 outlets last year “inadvertently created a captive market for a handful of large retail chains.”

While Sara was intended to alleviate the burden on the poor, he said this concentration “allowed some large players to benefit from a significant windfall.”

Unfortunately, he added, there is a strong perception that “these economies of scale were not fully passed on to consumers, as prices for many Sara-eligible essentials remained at the ceiling prices.”

“By more than tripling the number of participating outlets to 10,000 this year, the government aid will translate into immediate liquidity for SME retailers and allow them to participate in the digital economy via the MyKad-based cashless system,” he said.

Ng noted that Samenta had previously described 2026 is a ‘survival year’ for many SMEs due to rising compliance and operational costs.

Given this, the integration of small shops into the Sara programme provides a much-needed revenue buffer, he said.

“When SME retailers thrive, the entire supply chain, including local wholesalers and logistics providers, benefits from the multiplier effect.”

He added that Samenta is committed to working with the government to ensure that Malaysia continues to be a competitive and fair environment for all businesses to thrive.