According to Rural and Regional Development Minister Ismail Sabri Yaakob, the Mara Digital Mall launched in Dec 8 last year was a success. The sale recorded was RM18.4 million for the 38 outlets currently in operation at the mall. However, if we take out the RM1.02 million made by traders at the Anggerik Mall in Shah Alam, the sale achieved at Mara Digital was only RM17.38 million (RM18.4 million minus RM1.02 million).

I think we should all congratulate the minister and those who believe in him if indeed the sale figure achieved is commendable and sustainable.

However, let’s not be too quick to praise or to condemn. I would prefer that we look at the numbers in greater detail. Since I am not in this business, I will only make general assumptions and ask general questions.

RM17.38 million turnover for 12 months by 38 outlets is RM38,114 per month per outlet. Is this a large or small number per outlet? Is this a viable and sustainable number? What is the gross margin for digital businesses? I hope the minister and those in this business will be able to help me out.

I stand corrected, is 30 percent gross margin for digital business a fair assumption? If so, 30 percent of RM38,114 is RM11,343 per month.

How many workers or assistants does an outlet need to achieve a turnover of RM38,114 a month? Are two workers a fair assumption with each getting RM2,000 a month?

What is the ‘market’ rental (unsubsidised rental) for each outlet in Mara Digital Mall? Is RM3,000 per outlet reasonable with air-conditioning, lighting and general maintenance thrown in? What about insurance, licensing, security and other auxiliary expenses? Can we assume RM1,000 per month for this?

The net to each outlet owner is RM3,343 per month before paying his own salary (RM11,343 minus RM8,000). Is this a success?

I wish the minister could give a more cogent assessment of his pet project. Quoting some global numbers is not going to reveal or help much.

It has been one year, how many of these outlets are surviving and making a profit without subsidies? How many are ‘Alibaba’ out to someone else on the quiet? The minister should put everything on the table.

If indeed the project is profitable and viable, by all means expand it further to other states. If not, please don’t indulge in pretensions and waste more of taxpayers’ money.