TUKAR CHANGING THE FACE OF SUNDRY SHOPS

PUTRAJAYA, Feb 2 (Bernama) – At the mention of a sundry shop, perhaps what

comes to mind is a small, dimly-lit shop, with a haphazard arrangement of

goods, coated with a patina of dust.

However, today, things are not as they once were.

This is because the face of sundry shops in Malaysia is slowly being

transformed in line with the government’s aim of breathing new life into

them.

The government’s aspiration is being translated into a programme known as

Transformasi Kedai Runcit (TUKAR) (Small Retailer Transformation Programme),

launched in 2011.

It does not only change the landscape of sundry shops in the country but

also increases their competitive edge in this increasingly challenging business

environment.

WHY CHANGE

TUKAR is linked to the Economic Transformation Programme (ETP), a

comprehensive government initiative to transform the country into a high-income

nation by 2020.

The target of ETP is to lift the gross national income (GNI) per capita from

RM23,700 in 2009 to over RM48,000 in 2020.

Some 3.3 million job opportunities are expected to emerge, based on the

target.

The ETP also focuses on the 12 National Key Economic Areas (NKEA), one of

which is Wholesale and Retail.

The Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) has been

entrusted with the implementation of the Wholesale and Retail NKEA.

According to Mohd Fariszan Ahmad, head of the ministry’s Delivery Management

Office, there were 13 Entry Point Projects (EPP) under the Wholesale and Retail

NKEA.

Among them are TUKAR, the Community Market and the Caravan Market (PAKAR),

Automotive Workshop Modernisation (ATOM), Food Bazaar and Gedung 1Malaysia.

He said the 13 EPPs were expected to contribute RM83.4 billion to the GNI by

2020.

They are also expected to create 370,000 new jobs in various levels, such as

management, professional, technical, executive and clerical, in the next 10

years.

TARGET OF TUKAR

Mohd Fariszan said the implementation of TUKAR is expected to contribute

RM5.56 billion to the GNI, while producing 51,540 job opportunities by 2020.

According to the National Statistics Department, there are 50,000 sundry

shops in Malaysia. Around 10 per cent are targeted for modernisation through

TUKAR between 2011 and 2020.

Mohd Fariszan said the programme exceeded its initial target of 500 sundry

shops a year, with 519 shops nationwide joining TUKAR by Dec 30 2011.

Although the response has been encouraging, he said, the ministry still

needs to actively promote TUKAR to attract the involvement of non-Malay

traders, currently still low.

Of the 519 sundry shops that joined TUKAR, 376 (72 per cent) are

Malays, 34 ( 7 pe rcent) are Chinese, 67 (13 per cent) are Indian, with the

balance made up by the Bumiputeras of Sabah and Sarawak.

STRATEGY

To ensure the success of TUKAR, KPDNKK has arranged a four-pronged approach.

Mohd Fariszan explained that the strategies are: modernising the premises of

traditional retailers (total renovation); upgrading the premises (changing the

arrangement of product display); encouraging cooperative involvement in the

retail business; and establishing local distribution centres.

The implementation of TUKAR is also strengthened by the appointment of

consultants from local and foreign hypermarkets such as Mydin, Carrefour, Tesco,

AEON and Giant.

"The consultants will advise us on how to modernise the shops, renovate and

up-grade them, as well as on the costs involved.

“Their consult is given free as part of their Corporate Social

Responsibility (CSR).

“Meanwhile, Bank Kerjasama Rakyat Malaysia (Bank Rakyat) provides easy loans

for sundry shop owners who qualify for TUKAR,” said Mohd Fariszan.

He added that the Cooperatives Commission of Malaysia (CCM) is also

involved as the consultant for cooperative sundry shops.

CAREFUL SELECTION

The selection of participants for TUKAR is based on certain criteria.

According to Mohd Fariszan, the ministry has to be careful in

the selection, as it could impact not only the success of the programme but also

affect financial aid.

The maximum amount of loan that can be disbursed is RM60,000,

with a repayment period of up to 15 years, at an interest rate of 3 per cent

annually.

Applicants must be between 18 and 60 years old and have a sundry

shop, preferably owned and in business for at least a year.

The size of the shop must be not more than 2,500 square feet

(around 762 square metres).

After an application is made, a ministry representative is dispatched to

check on the suitability of the premises for TUKAR.

He said owners were asked to allow Bank Rakyat look into their

financial records through CTOS Sdn Bhd and CCRIS (Bank Negara Malaysia).

"These checks have resulted in some applications being rejected

because of the loan burden of applicants.

"However, if applicants have a clean financial record, consultants will

estimate the costs of renovations.

“Retailers can pick any of our consultants. They can also choose

contractors to perform the renovations, subject to the renovation terms decided

by the consultant,” he said.

He added that all renovation jobs, including Point of Sales (POS), lighting

and installation of the TUKAR logo, must be completed within two weeks.

TRAINING

Modernising sundry shops under TUKAR is not just a matter of making physical

changes to the premises.

Mohd Fariszan said retailers, too, need to be “modernised,” in

order to build human capital with knowledge and skill in entrepreneurship,

especially in retail.

They are also trained in financial and business management.

Last year, six course series were organised with the help of

the Cooperative College of Malaysia.

“We teach them the basic knowledge first. So far we have taught

three modules, including stock management, financial management and consumer

behaviour.

"We will do follow-up training this year for the same participants,” he

said, adding that all participants were offered training but not all of them

were able to attend.

However, those who were unable to attend last year need to attend this

year’s courses.

TUKAR participants are also given POS training in handling cash registers.

POS facilitates the documentation of daily sales and inventories sold, as

each items has its own barcode.

He said more in-depth POS training would be held this year as a

follow-up to the basic training course held in six series last year.

MONITORING

In the bid to ensure every TUKAR participant puts what is taught

into practice, representatives from KPDNKK’s state offices conduct spot checks

from time to time.

According to Mohd Fariszan, a majority of participants saw an

increase in sales between 11 and 63 per ent.

However, survey results revealed a small number of participants

disregarding what the consultants taught. The arrangement of inventory was also

haphazard.

“To me this is merely a problem of attitude. Everything has

already been taught. There are gondola shelving plans and also Standard

Operating Procedures.

“The consultants do not only advise but help with inventory display as well.

The participants only need to take it from there and follow the plan,” he

said.

CONTINUE HELPING

Mohd Fariszan said problematic retailers would continue to receive aid and

guidance.

He said KPDNKK will, also help by providing free promotion to sundry shops

under TUKAR.

“We will help the participants but we have to be careful and ensure that

they abide by the rules.

“This is because the loans given to them are the people’s money that needs

to be paid back,” he stressed.

TUKAR sundry shops are also encouraged to sell Kedai Rakyat 1Malaysia (KRIM)

items.

To date, he said, some 103 TUKAR shops have allocated special shelves

featuring KR1M products.

-- BERNAMA

MMA SHM INE RON