TAWAU: The Federal Government’s aid programme, while aimed at helping low-income groups ease their living costs, is placing significant pressure on small and medium-size enterprises (SMEs) in Sabah, particularly local retailers, said SAPP Supreme Council member and Tawau Sri Tanjong CLC Chairman Alex Soon.
Alex warned that restrictions under the MyKasih programme, including limitations on eligible product categories and merchant qualifications, are driving customers away from small retailers and creating operational setbacks.
“Only large retail chains are equipped with the systems required to support the MyKad cashless credit system and the vast majority of local SMEs are unable to participate,” he said, in a statement.
He emphasised that under the MyKasih programme, eligible households receive between RM50 and RM200 per month in cashless credit to purchase essential goods.
“Aside from eggs, the subsidy excludes fresh agricultural produce such as vegetables, fruits and meat. The programme is expected to run until the end of the year,” he said.
Alex said this directly caused small retailers to lose customers and suffer sharp drop in sales, with many of them unable to sell even basic goods like rice, cooking oil and milk for entire month, leading to severe inventory backlogs.
Criticism was also levelled at the Sabah Ministry of Industrial Development and Entrepreneurship (MIDE) for its silence on the issue.
Alex claimed the Ministry has not addressed the growing concerns and has instead focused on overseas official visits, prompting discontent within the business community.
He urged Mide to step up and engage with Federal counterparts to ensure local SMEs are not excluded from government aid mechanisms.
“Supporting measures must be introduced to correct market imbalances, protect supply chain diversity and safeguard the survival of local businesses,” he said.
SAPP called for immediate coordination between State and Federal agencies to address the unintended consequences of the aid programme and maintain a resilient local economic landscape.
