MALAYSIAN INDIAN BUSINESS | Page 1

BUSINESS NEWS

TUKAR turns shop from RM50-a-day into a RM1,000-a-day business

The title of the image and other de-tails to be put here.

“We tried everything we could think of,” said Andrew, who to-gether with Anuar, had no expe-rience at all in running a sundry shop business. “We modified here and there, re-arranged the shop several times but we were not able to make our shop shine.”

The grocery shop, Aksaya in Taman Mount Austin, Johor Bahru used to rake in just an average of RM50 a day for

buddies Andrew Paul, 23 and Abdul Anuar, 30, since they opened up for busi-ness in January 2011.

All that changed two months ago when the magic wand of the TUKAR programme transformed it from a clut-tered, dingy outlet into a modern shop with bright lights, tiled floors and neat-ly-arranged products in spanking new shelves.

Shopping had been made easier and more enjoyable for Andrew and Anuar’s customers – and they rewarded the two with a daily collection of a mind-bog-gling RM1,000.

It was just about six months ago that Andrew and Anuar, who became bud-dies after working together in a hotel

in Singapore for five years, were almost beginning to despair that their dream of standing on their own feet as entrepre-neurs was about to be dashed.

“We did not know suppliers directly and hence were unable to provide a va-riety of goods for our customers,” said Anuar, adding that the seed money of their five years savings while working in Singapore was being depleted.

In fact they didn’t even know how to display goods systematically then. Their stocks were in disarray while the poor ambience in the shop gave the outlet an uninviting appearance.

It was by chance that one day the two buddies stumbled on an article about “Project TUKAR” in a local magazine and quickly went on to get more details about it.

They lost no time in contacting the Johor Bahru branch office of Domestic Trade, Cooperatives and Consumerism (PPDNKK) which was located at Me-nara Ansar.

In the beginning PPDNKK officers cross-checked their eligibility to partici-pate in Project TUKAR. Once their eli-gibility had been certified, the duo were offered an option to select consultants from a list of hypermarket operators in Malaysia. They opted for Giant Super-market as their consultants.

On their first visit, the consultants made plans and programs for our shop. They even made sketches of needed improvement. The sketch covered im-provements in lighting, ceilings, display shelves and even a having suitable re-frigerator in the shop.

“Our consultant offered us a lot of ad-vice and assistance,” said Anuar.

He also guided them on the best prac-tices in business administration and the management of cash flow, product display, as well as stock management through computerisation and bar cod-ing.

The result from TUKAR’s two-pronged transformation initiative was phenomenal.

“Before, we were using shelves simi-lar to those used in warehouses for our

Andrew Paul (Left) and Anwar (Right)

By G T Naaidu

Page 2 | MALAYSIAN INDIAN BUSINESS

BUSINESS NEWS

goods display. Even our lighting bright-ness was too dim. They taught us how to arrange goods properly on display shelves, stocks management and inven-tory control,” added Anuar.

With help and advice from the con-sultant, Andrew and Anuar prepared their business plan and submitted their application for a bank loan to Bank

Rakyat.Subsequently, RM60,000 was ap-

proved under the TUKAR scheme for renovations and stock purchases. They also became eligible for an additional RM20,000 as the ministry had just then increased the quantum of loan for eligi-ble participants to the programme.

The entire process took around three

months.“Now, our shop looks so attractive.

Our customers have a better shopping environment. We are happy and mo-tivated. Project TUKAR has given us new hope,” said the best friends, now with renewed confidence in themselves and their business.

MALAYSIAN INDIAN BUSINESS | Page 3

BUSINESS NEWS

TUKAR transformed626 traditional sundry stores into modern outlets

The small retailer transformation programme (or Program Transformasi Kedai Runcit, Program TUKAR) was initiated by the Government to help tra-ditional “pop-and-mom” sundry stores modernise to make them more competi-tive.

The TUKAR programmes are focus in four main strategies.

TUKAR raises customer service standard, synchronise business process-es to trade in an efficient and cost effec-tive manner and encourage sales of high quality products.

One of the direct benefits of the TU-KAR programme is that by connecting the owners to the retailers directly, the high cost of distribution, which can add up to 36% costs to the products, is cut down.

As of April 2012, a total of 626 shops have undergone a facelift since the pro-gramme was launched in February 2011 and another 393 are under way.nation-wide, including those in Sabah and Sarawak, have joined the programme.

The program targets to upgrade and modernised at least 10 per cent of cur-rent traditional small sundry retailers from an estimated number of 50,000 en-tities by 2020.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Is-mail Sabri Yaakob said those who had gone through the programme had seen

an increase of between 20 per cent and 100 per cent in profit.

The TUKAR programme is open to all sundry shop owners who have been in business for at least two years, are aged between 23 and 60, and possess a valid small-retailer licence.

Hypermarkets Mydin, Carrefour and Tesco take on the role of consultants to give a new lease of life to traditional re-tail outlets.

Tesco has given its commitment to transform 150 retail shops and Carre-four, 400 shops.

Mydin had given its commitment to modernise 100 retail shops this year.

Recently, Co-operative Commission of Malaysia (SKM), Giant, Aeon and Econsave have joined in the programme as well.

The TUKAR programme is well and truly on its way even if Ravindran Devagunam, Wholesale and Retail Di-rector of Pemandu (Performance Man-agement & Delivery Unit), Prime Minis-ter’s Department, says the journey has only begun.

The title of the image and other de-tails to be put here.

1. A total renovation to mod-ernise the premises of tradi-tional retailers. 2. Assist the retailer changing the arrangement of product display 3. Encouraging cooperative in-volvement in the retail business 4. Establishing local distribu-tion centres.

Page 4 | MALAYSIAN INDIAN BUSINESS

BUSINESS NEWS

1What is the project TUKAR ?

2 How to participate in TUKAR programme?

3 Who are the consult-ants involved in the TUKAR Programme?

7 What is the amount, dura-

tion and service charges

for financing the TUKAR

Programme?

6 Which is the partici-

pating Bank in pro-

viding financing for

TUKAR Programme?

5 Who is eligible to par-

ticipate in TUKAR Pro-

gramme?

4 What is the role of a

consultant in TUKAR

Programme?

FREQUENTLY ASKED QUESTIONS

TUKAR is an Entry Point Pro-ject (EPP) under the Economic TransformationProgramme that serves to mod-ernise traditional “mom and pop” grocery stores andincrease levels of competitive-ness in their localities.

Retail store owner can apply directly to the hypermarket in-volved or contact the office of Domestic Trade, Co-operatives and Consumerism in your state or branch.

DELIVERY MANAGEMENT OFFICE (DMO)Kementerian Perdagangan Dalam Negeri,Koperasi dan Kepenggunaan,Aras 5, Podium 1, No.13, Persi-aran Perdana,Presint 2, 62623 PUTRAJAYANo. Tel: 03 - 8882 6934 / 5827No. Faks: 03-8882 6227

Project Manager:Encik Zahari bin Md Afandi /Encik Mohd Khairul Dahri bin Mohd ZawawiEmel : zahariafandi@kpdnkk.gov.my /mkdahri@kpdnkk.gov.my

Initially, Mydin, Carrefour and Tesco. Now Co-operative Com-mission of Malaysia (SKM), Gi-ant, Aeon and Econsave have joined as well.

The maximum loan is RM80, 000, term of loan of up to 15 years with a service charge rate of 3% per annum.

Bank Kerjasama Rakyat Ma-laysia Berhad (Bank Rakyat).

Grocery store owner who meets the following conditions:• 100 per cent locally owned business (sole proprietorship, partnership, Co., Ltd.).• Has a license from Local Au-thority which is valid for operat-ing a grocery store.• The owner of retail stores 23 years of age and not more than 60 years.• Area stores (size of the area does not exceed two-door shop or 2500 square feet).• Grocery store has been oper-ating for at least 2 years.

• Provide advisory services related to the modernization of retail outlets.• Provide the structure of retail planogram.• To assist operators in the gro-cery store renovation and up-grade of the premises.• Assist purchasing machines and related equipment including POS System • Provide Standard Operation Procedures (SOPs) for retail business.• Provide support/training as-sistance to entrepreneurs in the field of entrepreneurship grocery / retail / accounting / manage-ment and related stocks• To assist retail operators to obtain a continuous supply of goods for sale.• Monitor, evaluate and make improvements to the grocery store that has been modernized from time to time.