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<strong>ETP</strong> ANNUAL REPORT 2011<br />
EPP 2<br />
Modernising via the Small Retailer<br />
Transformation Programme (TUKAR)<br />
The Small Retailer Transformation<br />
Programme (TUKAR) was introduced<br />
to facilitate the modernisation of 500<br />
traditional sundry stores nationwide in<br />
January 2011. This is to address the need<br />
for small retailers to remain competitive in a<br />
retail environment increasingly dominated<br />
by hypermarkets and superstores. The<br />
implementation of this project is expected<br />
to contribute RM5.56 billion to GNI and<br />
create 51,540 new jobs by 2020.<br />
Achievements<br />
With the signing of the Memorandum<br />
of Understanding on 18 January 2011<br />
between the Ministry of Domestic<br />
Trade, Co-operatives and Consumerism<br />
and three major hypermarkets, namely<br />
Mydin, Carrefour and Tesco, sundry shop<br />
owners were set to gain valuable retail<br />
expertise and knowledge from the big<br />
industry players. The hypermarkets are<br />
committed to provide advisory services on<br />
modernisation, redesigning of store layout,<br />
training in the preparation of planograms<br />
and hand-holding development as well<br />
as other projects deemed necessary to<br />
the competitiveness of small retailers.<br />
Planograms are diagrams or models that<br />
indicate the placement of retail products<br />
on shelves in order to maximize sales.<br />
The hypermarkets’ involvement in TUKAR<br />
also provides an alternative platform to<br />
promote corporate social responsibility<br />
projects by helping to increase supply<br />
chain efficiency for the local wholesale and<br />
retail sector across Malaysia.<br />
In addition, Bank Kerjasama Rakyat<br />
Malaysia Bhd facilitated the screening and<br />
disbursement of loans to the owners of<br />
retail outlets participating in the TUKAR<br />
project. The owners were offered up to<br />
RM60,000 in soft loans with a repayment<br />
term of 15 years at three per cent.<br />
TUKAR gained momentum with the<br />
increased participation from other<br />
retail experts as consultants. From three<br />
consultants in January 2011, the number<br />
of consultants increased to 12 in December<br />
2011, including Co-operative Commission<br />
of Malaysia (SKM), Giant, AEON, Yayasan<br />
Pembangunan Usahawan Terengganu,<br />
Econsave, Sunshine, Triple S, Terus Maju,<br />
and H&L Supermarket.<br />
76<br />
By the end of 2011, 519 sundry shops<br />
were successfully transformed all across<br />
Malaysia, exceeding the 500 stores target<br />
for the year. SKM led the way for the<br />
consultants by helping to complete this<br />
process for the most number of stores, 126,<br />
followed by Mydin (105 stores), Carrefour<br />
(104 stores) and Tesco (101 stores).<br />
The retailers saw an immediate increase<br />
in revenue between 30 to 80 per cent<br />
compared to revenue recorded by the<br />
stores before the transformation.<br />
The composition of TUKAR participation<br />
of Malaysians from various ethnic groups<br />
was as follows. The participation of<br />
Malays was at 72 per cent, followed by<br />
the Indian community at 13 per cent<br />
while the Chinese community and others<br />
were seven per cent and eight per cent<br />
respectively.<br />
Exhibit 4.5<br />
States<br />
Number of shops in different states<br />
Visited by<br />
consultants<br />
Interest<br />
Cleared CTOS/<br />
CC RIS<br />
Target Completed<br />
Perlis 104 9 7 7 6<br />
Kedah 75 7 85 42 42<br />
Pulau Pinang 53 60 95 45 45<br />
Perak 224 36 54 38 30<br />
Selangor 378 124 117 60 64<br />
Negeri<br />
Sembilan<br />
TUKAR also witnessed the involvement<br />
of Cooperatives namely, Suria (for the<br />
Indian community) and Jaringan Sepadu<br />
(for the Malay community) that helped<br />
to encourage the participation of its<br />
members in the programme. We will also<br />
be establishing other cooperatives to<br />
address other communities in due course.<br />
The table below demonstrates the<br />
breakdown of sundry shops that have been<br />
transformed across Malaysia with Selangor<br />
leading with the completion of 64 stores,<br />
followed by Pahang with 62 stores and<br />
Terengganu with 53 stores:<br />
Moving forward<br />
The initial target of 500 outlets in 2011 is a<br />
major stepping stone for the EPP’s target of<br />
5,000 outlets to be modernised by 2020. In<br />
2012, the target will be another 500 sundry<br />
shops all over Malaysia.<br />
209 35 42 28 30<br />
Kuala Lumpur 101 9 20 20 24<br />
Melaka 0 0 33 20 23<br />
Johor 214 54 74 46 51<br />
Pahang 922 115 106 55 62<br />
Terengganu 50 42 82 45 53<br />
Kelantan 57 56 75 30 36<br />
Sabah 97 13 19 30 31<br />
Sarawak 154 11 34 30 22<br />
Labuan 6 2 4 4 0<br />
Total 2,644 573 847 500 519