KR1M 2.0 set to collaborate with sundry shops

KR1M 2.0 products are expected to be available at 3,000 outlets nationwide by 2020


THE relaunched Kedai Rakyat 1Malaysia (KR1M 2.0) is expected to expand its reach to more Malaysians by forging collaborations with sundry shops and small-time retailers.

Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainuddin said the strategy is part of the government’s plan to establish a high volume of KR1M 2.0 products that could be distributed throughout the country.

He said the partnership with smaller shops follows KR1M 2.0’s earlier collaboration with supermarket chains, including Tunas Manja Group (TMG) as the programme anchor, and KK Supermart & Superstore Sdn Bhd (KK Mart).

As a result of the partnership, KR1M 2.0 products are expected to be available at 3,000 outlets nationwide by 2020.

“However, we will not rush to seal the deal with sundry shops. We still need to consider various factors, one of which is TMG’s ability to absorb the cost of distributing the goods to sundry shops to offer affordable prices,” he said at the KR1M 2.0 media briefing in Kuala Lumpur yesterday.

KR1M was set up by the government in 2011 to offer essential goods at prices 30% to 50% cheaper than other supermarkets.

At the same time, the project was aimed at mitigating the high cost of living among Malaysians.

However, the original programme ceased to operate in August last year after its sole operator, Mydin Mohamed Holdings Bhd, gave up the business.

Hamzah said KR1M 2.0 will also not be run by a single business entity, and that the government via its agency Perbadanan Nasional Bhd (PNS) will initiate collaborations between strategic partners and retailers.

As manager of the project, PNS will be given all the necessary access to supply retail products to ensure that consistent distribution will be in place, with products sold at lower price.

KR1M 2.0 was launched early this month by Prime Minister Datuk Seri Mohd Najib Razak at TMG Mall in Pahang.

“Since the launch, we saw a 7% increase in TMG’s sales, indicating that KR1M 2.0 is well accepted,” Hamzah said.

TMG has 21 outlets in Peninsular Malaysia with 15 of the outlets located in Pahang. KK Mart, on the other hand, currently has 30 outlets in the country.

Hamzah said the ministry aims to increase KR1M 2.0’s stock keeping unit to 100 products by April from the current 50 items.

“It is important that people can buy the goods with a clear mind at affordable prices,” he said.