SHAH ALAM - Mydin managing director Datuk Wira Ameer Ali Mydin emphasised that operators of Madani Mart should learn from past retail ventures to ensure long-term sustainability.
He highlighted that the main challenge for the initiative, particularly as it expands nationwide, will be logistics rather than pricing. He also raised concerns over the plan to establish a Madani Mart in every state assembly (ADUN) or parliamentary area, noting that careful planning is essential to address logistical issues.
The Madani Mart concept, driven by the private sector rather than government funding, aims to offer competitive prices and operators are advised to remain confident while drawing on lessons from previous experiences.
Ameer suggested a cluster-based approach for new outlets.
“It is crucial to consider scale when opening smaller outlets, where volume is lower, product variety is limited and operating costs are relatively high. I would recommend adopting a cluster approach.
“For example, if Madani Mart is introduced in Kuantan, operators could open 10 to 15 outlets within a radius of 5 to 15 kilometres. This would help reduce logistics costs and improve supply chain efficiency.
“On the other hand, opening single outlets across distant locations such as Kota Bharu, Terengganu, Johor Bahru, Temerloh and Kapit would significantly increase supply chain complexity and logistics costs, making the venture difficult to sustain, in my opinion,” he told Sinar Daily.
Despite the challenges, Ameer remains optimistic about the initiative and hopes it succeeds. He wishes all the entrepreneurs involved the very best and finds it encouraging that there is strong support from Yayasan Madani.
He also emphasised that franchise fees should be kept reasonable, recognising that some form of support is necessary.
“I hope the franchise fees are kept reasonable, as this type of business depends on very slim margins. Retail operates on tight margins, so every aspect of operational and logistics costs must be carefully managed.
“While we have no intention of being directly involved in Madani Mart, I remain open to discussions. Whether invited by the ministry or the entrepreneurs themselves, I would be glad to sit down over coffee and share ideas on how to strengthen this initiative.
“From what I understand, this is an important effort that can benefit the citizens and support small traders. It is something that all of us should support for the good of Malaysia,” he added.
Meanwhile, Malay Economic Action Council (MTEM) Board of Trustees member Mohammad Syahnis Salleh urged the Madani Mart agenda to focus on strengthening existing small retailers.
He suggested supporting small and medium enterprises (SMEs), which contribute 30 per cent to Gross Domestic Product (GDP) and employ over 3 million people, by redirecting funds for new outlets into transforming existing retailers in each constituency to maximise economic impact.
He also emphasised the need for transparency and integrity in governance, particularly given the involvement of political figures and relevant ministries in Yayasan Madani to avoid negative perceptions regarding conflicts of interest.
“Ensure transparency and governance integrity by clearly explaining Yayasan Madani’s structure and maintaining strict separation between policymakers and business implementers,” he said.
Syahnis also suggested promoting fair competition by ensuring that subsidy distribution programmes, such as the Rahmah Sales programme, are accessible to all retailers rather than being limited to Madani Mart, in order to prevent any unfair advantages.
He said granting an unfair advantage to a single entity could weaken the competitiveness of small retailers without equal access to subsidies.
He also suggested measures to support small traders through digitalisation, financing and training.
“Provide digitalisation grants up to RM20,000 for small retailers to upgrade point of sale, inventory, accounting, and cashless payment systems to remain competitive.
“Offer full business license rebates to stores that maintain price caps on essential goods, reducing operational costs and facilitating direct manufacturer access to help small traders obtain competitive wholesale prices comparable to major supermarkets,” he said.
Building on these support measures, he proposed a store transformation program to rebrand existing outlets as ‘Rakan Madani,’ featuring upgraded premises while preserving ownership and local identity.
He further suggested offering interest-free microcredit of up to RM200,000 through agencies such as National Entrepreneur Corporation Berhad (PUNB), TEKUN Nasional, and Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) to support cash flow and stock replenishment, particularly during festive seasons.
The Madani Mart model, as explained by Domestic Trade and Cost of Living Deputy Minister Datuk Dr Fuziah Salleh on April 4, operates differently from previous government-subsidised programs such as the now-defunct Kedai Rakyat 1Malaysia (KR1M) under former prime minister Datuk Seri Najib Razak's administration.
Under that initiative, KR1M’s main operator, Mydin Holdings Berhad, lost up to RM100 million by the time the last shop was closed in 2017.
Madani Mart, Fuziah said, provides entrepreneurs with the flexibility to run their businesses with supply chain support from Yayasan Madani.
“It does not receive government funding and does not provide capital for Madani Mart. Each Madani Mart is privately owned,” she added.
Fuziah said Madani Mart is a strategic approach to address the public’s cost-of-living challenges more comprehensively without requiring government capital, while also providing opportunities for local communities and entrepreneurs to participate in the business.