SARA Spending Boon For Labuan Businesses

LABUAN, Sept 28 (Bernama) -- Retailers and small businesses in Labuan are seeing stronger sales and steadier customer flows since the introduction of the government’s Penghargaan SARA one-off aid, alongside the ongoing Sumbangan Asas Rahmah (SARA) programme targeted at low-income households.

Both initiatives, delivered through MyKad for the purchase of essential items, are not just providing short-term relief but also reinforcing household spending power while sustaining local supply chains, giving small and medium enterprises a fairer chance to grow.

SARA, which is tied to the Sumbangan Tunai Rahmah (STR), specifically channels aid to eligible low-income households for monthly purchases of basics such as food, beverages, hygiene items and medicines.

On the other hand, Penghargaan SARA is a one-off RM100 aid credited into the MyKad of every Malaysian aged 18 and above, which can be redeemed between Aug 31 and Dec 31, to broaden the benefits of SARA to cover the entire adult population.

For Labuan, where small shops and mini-markets play an outsized role in the community, this combination of targeted support has anchored more spending within the local economy.

At Bataras Hypermarket, a retail anchor in Labuan, sales have jumped by about 30 per cent since Penghargaan SARA began.

“Before the launch of (Penghargaan) SARA, our sales were fluctuating. Now sales have stabilised, and we have recorded an increase of about 30 per cent, especially in several items including rice, instant noodles, canned food and detergents.

“These items are moving faster, which helps both suppliers and retailers manage stocks more efficiently,” said its manager, Jean Paulus.

Another participating outlet, D’One Mart, a 24-hour neighbourhood outlet, has seen sales rise by up to 25 per cent.

“Even during late-night and early-morning hours, sales are jumping and much more consistent. We no longer struggle with excess stocks like instant noodles and canned items.

“Now, these products are selling steadily every day. Customers benefit because their essential needs are covered, and suppliers are also happier because they don’t have to worry about returns,” said its manager, Mohd Zuzulfikar MohdAlias.

In villages, small sundry shops that often face competition from larger chains are also experiencing a revival.

Roslina Jali, 48, who runs a mini market in Kg Bebuloh, said the programme has helped keep her business afloat.

“We can’t compete with the prices or the variety in the hypermarkets, but SARA has encouraged villagers to shop closer to home. It gives us a steady flow of customers every week, which is very helpful for our survival,” she said.

In Kg Layang-Layang, shop operator Hazwan Sapiee echoed the same sentiment.

“Before SARA, sales were uncertain, sometimes very slow, especially during weekdays. But now people use their MyKad credits to buy essential goods here. It gives us a fair chance to keep up with the big supermarkets in town,” he said.

Meanwhile, the SME Association of Labuan said the initiative highlights the need for small businesses in Labuan to transform, noting the importance of capacity-building and digital adoption. 

“With more buyers in the market, there is a need for entrepreneurs to professionalise, including upgrading packaging, managing inventories more effectively and embracing online outreach to complement physical sales,” its president, Jeffrey Tan, said.

SARA is a targeted cash aid initiative that now covers 5.4 million recipients nationwide, comprising 700,000 eKasih households and 4.7 million STR recipients. Under Budget 2025, the allocation for STR and SARA was increased to RM13 billion from RM10 billion previously, while the annual SARA rate was raised to RM2,100 from RM1,200.

As part of the National Day celebration, the government also introduced Penghargaan SARA, which benefits some 22 million people at an additional cost of RM2 billion. This brings the combined allocation for STR and SARA this year to RM15 billion, the highest in the nation’s history.

So far, more than 8,100 retail outlets nationwide have joined the programme, offering over 90,000 essential items across 14 categories, including rice, eggs, medicines, detergents, school supplies and hygiene products.

-- BERNAMA