1 malaysia initiatives

7/28/2019 1 Malaysia Initiatives

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1 Malaysia Initiatives

At the heart of the 1Malaysia concept is a quiet simplicity: a belief in the importance of national

unity irrespective of race or religious belief. Malaysias diversity is what makes us unique, but in

order to fully benefit from what is undoubtedly a source of strength we need to come together

and build upon our common values. That is the central goal of 1Malaysia, but it is much more

than just an abstract ideology, delivering real improvements on the ground.

More than 1.5 million people have so far passed through the 1Malaysia health clinics, for

example, receiving treatment for any condition for just one ringgit an achievement of which

Im very proud. Other rakyat-focused programmes include the 1Malaysia Housing Programme

and PR1MA to help middle-income families buy their own homes, as well as the Kedai Rakyat

1Malaysia low-cost grocery stores.

Change doesnt happen overnight and there is still a lot more we need to do, but whatever the

challenges ahead I have no doubt that embracing our diversity and leveraging our collective

strength remains our best hope for the future.


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About Kedai Rakyat 1Malaysia

Kedai Rakyat 1 Malaysiais a shop operating on a mini market format, which provides various

basic necessities at low prices. This initiative was inspired by our beloved Prime Minister YAB

Dato Sri Najib Tun Razak on his concerns for the low income citizens located in the urban

areas.

This is also in line with the slogan Rakyat Didahulukan which has been mooted by YAB Prime

Minister himself.

The existence of Kedai Rakyat 1 Malaysia will also act as the medium for the Government to

control prices and lessens the monopolization of products which has long been dominated by the

multinational manufacturers. As such, the multinational companies will be constrained from

imposing price hikes without due justification.

Kedai Rakyat 1 Malaysia will serve the same consumer segment as hypermarkets do, but with

emphasis on consumers with basic essential needs. Unlike other regular grocery shops, most of

the items sold at Kedai Rakyat 1 Malaysiasuch as rice, cooking oil, milk powder and diapers

are packed with the logo ofKedai Rakyat 1 Malaysia.Currently, the assortments totals almost

250 Kedai Rakyat 1 Malaysiagrocery items and the list will increase over time.

Additionally, most of the items are packaged in smaller pack size to ensure the low income

consumers can still buy according to their needs and within their means. Amongst the smaller

pack sizes for example are 1kg rice, 100gm curry powder, baby diapers, etc.

Kedai Rakyat 1 Malaysia will give emphasis on products manufactured by Small and Medium

Entrepreneurs, hence acting as a platform for the governments continuous support to increase,

enhance and expand SMEs products manufacturing capacity as well as sales.

The first Kedai Rakyat 1 Malaysia is located at Kelana Jaya LRT station, operating from 7am

till 11pm.

MYDIN as the operator of Kedai Rakyat 1 Malaysia provides assistance in fit -out works,

equipments and racking installation, supply chain management, IT support for Point of Sales

(POS) system, retail and technical expertise as well as training. It took one month for MYDIN to


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complete the first Kedai Rakyat 1 Malaysialocated at Kelana Jaya LRT. The activities

pertaining to the above are part of MYDINs Corporate Social Responsibility for the local

neighbourhood.

In the end, what matters for us is this collaboration project between the Government and MYDIN

will benefit and reduce the burden of the Malaysian citizen, particularly the urban low-income

earners.

Government Resources

SMALL RETAI LER TRANSFORMATION PROGRAMME (TUKAR)

The Small Retailer Transformation Programme or TUKAR is an Entry Point Project (EPP) that

aims to modernise traditional retail stores by enhancing their competitiveness in a competitive

retail business environment through developing local traditional sundry shop (mom and pop),

enhancing the competitiveness of retailers and Small and Medium Enterprises (SMEs) and

preparing retailers for the implementation of Goods and Services Tax (GST). The strategies to be

implemented are to modernise the existing premises of traditional retailers, to upgrade the

existing premises of traditional retailers, to encourage the participation of cooperatives in the

retailing industry and to create a local distribution centres. Chosen hypermarkets will serve as

consultants for the implementation of TUKAR, and the hypermarkets involved include Mydin,

Carrefour and Tesco. This effort is an initiative by the companies involved as part of Corporate

Social Responsibility (CSR) in developing the local wholesale and retail sector. In 2011, a total

of 519 shops including shops owned by cooperatives participated in the project. The Government

targets to modernise 500 traditional retails stores yearly.


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DETAILS OF THE TUKAR PROGRAMME AS FOLLOWS :

1. Role of hypermarkets in implementing TUKAR

Provide advisory services related to the modernization of retail outlets.

Provides planogram structure for grocery stores.

Assisting local grocery stores in the renovation and upgrading of the premises.

Assist in the purchase of machinery and related equipment including POS Terminal System

(GST ready).

Provide Standard Operation Procedures (SOPs) for the grocery business.

Provide support/assistance and training for entrepreneurs in entrepreneurship

grocery/retail/accounting/management and related stocks.

Assisting local grocery stores to get a continuous supply of goods for sale.

Monitor, evaluate and make improvements to the retail shop that has been modernized from

time to time.

2. Participant eligibility

Grocery store owners who meet the following conditions:

100% locally owned business (sole proprietorship, partnership, private limited).

Registered with the Companies Commission of Malaysia (CCM).

Owns a license from the Local Authority (LA) which is valid for retail store operation.

Grocery store owners who are over 23 years old and not more than 60 years.

Acreage of the grocery store (not exceeding a two door shop or 2500 square feet).

Grocery store has been in operation for at least 2 years.

3. Bank involved in providing financing

Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat)

4. Amount, duration and service charges for financing TUKAR

The maximum loan is RM60, 000, the loan period up to 7 years with an annual rate of 3%

service charge.


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5.Interested participants

Retail store owners who are interested in participating in the TUKAR programme can apply

directly to the involved Hypermarkets or contact the Office of Domestic Trade, Cooperatives and

Consumerism in the state or branch.

6. Documents required for applying for funding

Bank Rakyat application form

Copy of the applicant's identity card

Detailed business plans of the applicant as follows:

(i) Company/Business Profile (Private Limited only)

(ii) Profile of Shareholders (Private Limited only)

(iii) Financial Statements (Balance Sheet & Profit and Loss Statement) (Private Limited only)

(iv) Photos of retail outlet premises

(v) Quote for the total modernization cost of the store

Copy of Certificate of Registration of Business/Company

(i) If the applicant is the owner of a Private Limited Company:

- Endorsed Form 24 and shareholders information

- Endorsed Form 49

- Memorandum and Articles of Association, Company (M&A)

- Resolution of the Company (for the purpose of applying for and receiving loans)

(ii) If the applicant is the owner of a Sole Proprietorship/Partnership

- Business Registration Form

- Partnership Agreement (if any)

Other information needed:

(i) Business License from the Local Authority (LA)

(ii) Bank statements for the last 3 months

(iii) Type of business premises (ownership/ hire) - Tenancy Agreement/S&P/Grants

(iv) Letter of authorization from the owner of the premises for rent

(v) Financing information with other financial institutions, copy of offer letter attached (if any)

(vi) Invoice/Receipt/Purchase Order if applicable


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BENEFITS OF TUKAR PROGRAME

A. TRANSFORMING SMALL RETAILERS

Therefore, the Retail Shop Transformation Programme with its Malay acronym TUKAR,

was introduced by the Ministry of Domestic Trade, Cooperatives and Consumerism.

TUKAR is the Entry Point Project (EPP) to help modernise traditional neighbourhood

stores and provide them a competitive edge in today's highly competitive retail

environment. It is also hoped that transformation will encourage the participation of more

players, including cooperatives, not only retailers but also local distribution centres.

With a RM30 million allocation from the government, the TUKAR programme was

introduced to throw a lifeline to small time retailers, who are increasingly losing out to

major supermarkets or hypermarkets.

B. TUKAR TO HELP WOO CUSTOMERS

Fatimah Bibi, 40, has been operating a grocery store over the last eight years and is aware

that her customers don't show much interest in what she has to offer They buy and leave

the premises quickly, she said. She fears if the situation continues, there is no way she

can expand her business.Her customers even may stop coming for good. Fatimah took the

opportunity to seek help under TUKAR.

"After modernising my outlet through TUKAR, I'm seeing more customers, and they

spend time browsing on what I have to offer," reported Fatimah.


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C. MODERNISING THE NEIGHBOURHOOD SHOP

"So far 175 retail shops have been transformed under TUKAR," said the program's

manager, manager Zahari Md Afandi. Transformation helps create an alluring setup that

offers wide range of products to entice the average consumer, and a streamlined business

process for the business owner.

"The end result is a cost effective and efficient retail chain that ensures products of

quality and good services. In fact, the TUKAR programme will help prepare retailers to

implement Goods Services Tax (GST)," he told Bernama.

Under TUKAR, modernisation covers all areas - human capital, equipment, expertise and

standard operating procedures such ways to display products and keep track of inventory.

D. TUKAR MODERNISATION CRITERIA

According to Zahari, the TUKAR modernisation programme focuses on human capital

development as well, so the entrepreneur has to garner knowledge and new skills,

especially in retailing.

Entrepreneurs have to attend the entrepreneurial courses in retailing conducted by a

consultant or appointed parties.

The transformation programme also involves the installation of equipment such as the

Point of Sale (POS) Counter Terminal (GST ready), an inventory data base, gondola

arrangement, lighting, advertising board with the TUKAR logo and Internet access.

Other than that, owners have additional options in modernising their outlets, such as

installing chillers, freezers, storage boxes, security alarm, air conditioning and tiled

floors.


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The modernised retail shops are uniform in their appearance and operate according to

SOP.

However, the products offered have to fulfill what the customers want. Otherwise, their

business model will not support modernisation costs.

Therefore, retailers have to make sure they have enough stock of items in demand

through the POS system or their existing arrangement.

For those who take up the TUKAR offer, Bank Kerjasama Rakyat Malaysia Berhad

(Bank Rakyat) will provide loans between RM20,000 and RM60,000, with an annual

service charge of 3 percent.

The money will be paid directly to contractors for equipment and renovation services.

E. HYPERMARKETS AS CONSULTANTS

"So far there are 11 consultants for this programme, including foreign hypermarkets such

as Giant, Carrefour and Tesco, and local hypermarkets such as Mydin and Econsafe,

noted Zahari.

"They take on the advisory role, especially in training retailers how to use the POS

system," he said.

The POS System is crucial in helping small retailers keep track of their profit margins,

the stocks sold and their available stocks, he said.

According to Zahari, all the hypermarkets have been classified as consultants, and will

help small retailers by advising them how to modernise and training them in retailing.

"At present, most of these smaller retail outlets don't even properly arrange or display


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their products," said Zahari. "Imagine books arranged on top and onions below. A

systematic and alluring display will attract the customer's attention," he said.

Mydin Mohamed Holdings expects that retailers under its guidance will see an increase

in sales between 40-50 percent when the transformation process is complete, according to

Managing Director Datuk Ameer Ali Mydin, quoted on the company's website.

F. THE PRE-REQUISTES TO PARTICIPATE IN TUKAR

Zahari explained that small retailers who want to participate in TUKAR have to ensure

that their business is 100 percent Malaysian-owned and registered with Malaysian

Companies Commission (SSM).

The owners of these retail shops should not be less than 23 years and not more than 60

years, and have a valid licence from local authorities.

The shops must have been operating for at least two years, and consist of not more than

two shoplots covering an area not more than 2,500 square feet.

Traditional retailers who are keen to transform their setup should see that they conform to

these conditions, and can apply through the nearest Ministry of Domestic Trade,

Cooperatives and Consumerism office.


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Highlights

As of 21st September 2012, 501 TUKAR stores have been complete for 2012 alone. Total TUKAR Stores that have been transformed since the project began is 1020 stores.

Small Retailer Transformation Programme (TUKAR)

The transformation of small retailer shops (TUKAR) is a project which aims to modernise these

shops to increase their level of competitiveness.

The transformation of small retailer shops (TUKAR) is a project which aims to modernise these

shops to increase their level of competitiveness.


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InvestmentRM5.43 billion (2020)

To date, three major retail chains namely Mydin, Tesco and Carrefour have signed up toparticipate in the TUKAR project. These projects will be carried out through:

Modernising local mum & pop sundry shopso Enhancing the competitiveness of SMEs and local retailers'o Enhancing customer service capabilityo Streamlining the quality of front-end and back-end office business processeso Promoting an efficient and cost effective supply chaino Encouraging the sale of quality productso Preparing sundry shop owners for the implementation of Goods and Services Tax

Initiatives

Small Retailer Transformation Programme (TUKAR) The transformation of small retailer shops (TUKAR) is a project which aims to

modernise these shops to increase their level of competitiveness.

EPP Champions

MYDINMagnificient Diagraph Sdn Bhd

(Carrefour)

Tesco Stores (Malaysia) Sdn BhdKoperasi Jaringan Sepadu Malaysia

Bhd (KOJARIS)
http://etp.pemandu.gov.my/article_go.aspx?id=6ad0c799-6f82-4c83-9604-9251091c34cahttp://etp.pemandu.gov.my/article_go.aspx?id=6ad0c799-6f82-4c83-9604-9251091c34cahttp://www.mydin.com.my/http://carrefour.com.my/http://carrefour.com.my/http://www.tesco.com.my/http://etp.pemandu.gov.my/Wholesales_-%E2%97%98-_Retail-@-Wholesale_and_Retail_-_EPP_2-;_Modernising_via_the_Small_Retailer_Transformation_Programme_(TUKAR).aspxhttp://etp.pemandu.gov.my/Wholesales_-%E2%97%98-_Retail-@-Wholesale_and_Retail_-_EPP_2-;_Modernising_via_the_Small_Retailer_Transformation_Programme_(TUKAR).aspxhttp://etp.pemandu.gov.my/Wholesales_-%E2%97%98-_Retail-@-Wholesale_and_Retail_-_EPP_2-;_Modernising_via_the_Small_Retailer_Transformation_Programme_(TUKAR).aspxhttp://www.tesco.com.my/http://carrefour.com.my/http://www.mydin.com.my/http://etp.pemandu.gov.my/Wholesales_-%E2%97%98-_Retail-@-Wholesale_and_Retail_-_EPP_2-;_Modernising_via_the_Small_Retailer_Transformation_Programme_(TUKAR).aspxhttp://www.tesco.com.my/http://carrefour.com.my/http://www.mydin.com.my/http://etp.pemandu.gov.my/Wholesales_-%E2%97%98-_Retail-@-Wholesale_and_Retail_-_EPP_2-;_Modernising_via_the_Small_Retailer_Transformation_Programme_(TUKAR).aspxhttp://www.tesco.com.my/http://carrefour.com.my/http://www.mydin.com.my/http://etp.pemandu.gov.my/Wholesales_-%E2%97%98-_Retail-@-Wholesale_and_Retail_-_EPP_2-;_Modernising_via_the_Small_Retailer_Transformation_Programme_(TUKAR).aspxhttp://www.tesco.com.my/http://carrefour.com.my/http://www.mydin.com.my/http://etp.pemandu.gov.my/Wholesales_-%E2%97%98-_Retail-@-Wholesale_and_Retail_-_EPP_2-;_Modernising_via_the_Small_Retailer_Transformation_Programme_(TUKAR).aspxhttp://etp.pemandu.gov.my/Wholesales_-%E2%97%98-_Retail-@-Wholesale_and_Retail_-_EPP_2-;_Modernising_via_the_Small_Retailer_Transformation_Programme_(TUKAR).aspxhttp://www.tesco.com.my/http://carrefour.com.my/http://carrefour.com.my/http://www.mydin.com.my/http://etp.pemandu.gov.my/article_go.aspx?id=6ad0c799-6f82-4c83-9604-9251091c34ca


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Koperasi Pembangunan Usahasama Masyarakat

Maju Sabah Bhd. (KOPUSAMAJU)Koperasi Suria Malaysia Bhd

Koperasi Jayadiri Malaysia Bhd. (KOJADI)Koperasi Automobil Kuching

Sarawak Bhd. (KO-KAS)
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