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 Disember 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.