KTMSAB have been founded in year 1963 by several local leaders with the support from UMNO Sg Ara and cooperation by Malay Cooperative Officer Encik Jaafar bin haji Abd Majid.

Only in 31 December 1966 KTMSAB has been registered under Undang2 Syarikat Bekerjasama 33/1948.Regisration No is 4303 with the name Syarikat Bekerjasama-Sama Serbaguna Tunas Muda Sg Ara with Tanggongan Berhad which later been amended to Koperasi Tunas Muda Sungai Ara Berhad on 30 September 1980

History and battle to build up KTMSAB before and after the foundation is always facing a lot of problems and hassle beside a lot of contributions and sacrifices from the individuals and certain organizations.

In other words, the main purpose of the KTMSAB foundation is to defend the place and to avoid from being chase out by the residents of the land belongs to Brown Estate in Sg Ara, Relau, Sungai Nibong, Sungai Kluang, Sungai Tiram and Bayan Lepas, Penang

At that time, the lands were about to sell to settle the owner’s estate duty, Miss Helen Margaret Brown who already passed away.

N.T.S Arumugam Pillai had bought almost all of the lands.

The residents of the lands which among them are poor Malay people have been distracted and afraid being chase out from the new owner when the lands is in need for other purpose such as housing development and other reasons.

Most of the residents stayed and earned their living on the land by being a rubber tapper, labour, farmer, and others which is low in income and uncertain, averaging to less than RM200 per month.

They then mostly became members of this Koperasi.