PETALING JAYA: Small retailers are experiencing significant sales drops since the government expanded the Sumbangan Asas Rahmah (SARA) programme, with many convenience shops reporting at least 20 per cent revenue decline, according to Jementah assemblywoman Ng Kor Sim.
The Democratic Action Party (DAP) representative raised concerns about unintended consequences of the cash aid initiative, which began distributing RM100 credits to 22 million adult Malaysians on August 31, 2025.
In a statement today, she highlighted that shoppers are increasingly patronising large supermarkets and chain stores that were first included under the SARA programme, leaving smaller players struggling.
“Based on feedback received during my frequent engagements with constituents, many smaller retailers, including small convenience shops have seen sales drop by at least 20 per cent since the RM100 SARA cash aid began,“ Ng stated.
The assemblywoman noted this presents a “double whammy” for small businesses already grappling with resource constraints and preparing for the mandatory e-invoicing policy implementation next year.
Despite the government expanding participating outlets from 4,100 to 7,300, many retailers remain excluded from the programme.
Ng’s office continues receiving feedback from retailers who have submitted applications to participate in SARA but are kept uninformed about their application status.
“They are left feeling excluded and helpless,“ Ng observed, calling for greater transparency in the registration process.
The assemblyman also expressed concern about the parallel Jualan Rahmah programmes, which offer daily essentials at 10 to 30 per cent below market prices. While involving 1,234 strategic partners across over 15,000 sales events nationwide, Ng warned the current setup risks distorting competition.
“Many small-time retailers lose businesses to these Jualan Rahmah programmes,“ he stated, emphasising that the concentration of vendors may disadvantage smaller players.
To address these concerns while maintaining the programmes’ effectiveness, Ng proposed four key reforms:
Simplified SARA registration: Make the process easier and more transparent for traders wanting to become participating vendors
Strict compliance enforcement: Ensure Jualan Rahmah benefits are exclusively for Malaysian citizens
Rural focus: Concentrate Jualan Rahmah programmes in rural areas where daily essentials are less accessible
Transparent participation: Prevent monopolisation by cartels and ensure fair vendor selection
While acknowledging the MADANI government’s efforts to alleviate financial pressures on households, Ng emphasised that success should be measured by both household assistance and small business sustainability.
“The success of these initiatives must be measured not only by the number of households assisted, but also by the strength of our small and medium enterprises (SMEs) who form the backbone of our economy,“ she stated.
The SARA programme represents a significant expansion of Malaysia’s social safety net, marking the first time in history that cash aid is extended to all adult Malaysians.
However, Ng’s concerns highlight the need to balance household relief with small business protection.
The Jementah representative called on relevant ministries to refine implementation swiftly, ensuring that household relief and small business survival go hand in hand.
“Unless it ensures inclusivity and transparency, these programmes will inadvertently deepen the struggles of small businesses, which are also part of the rakyat,“ Ng concluded.
The RM100 SARA credit is available until December 31, 2025, and can be used for purchasing 14 categories of essential goods at registered retail outlets nationwide.
