KR1M 2.0 ceased; no direct nego contracts


The newly-elected government will discontinue the Kedai Rakyat 1Malaysia (KR1M) 2.0 and suspend all Goods and Services Tax (GST) charges by the Malaysia Cooperative Societies Commission.

In an internal memo by the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) following its meeting with Prime Minister Tun Dr Mahathir Mohamad on May 14 — sighted by The Malaysian Reserve — it also stated that the “Program Jualan Sentuhan Rakyat” (PJSR) will be discontinued.

The ministry said alongside the discontinuation, the ruling government will implement targeted fuel subsidies.

“All programmes and suggestions by the previous leader that have not been implemented will be suspended,” it said.

Earlier this year, KR1M was relaunched to KR1M 2.0 — which featured a new business model and would no longer operate in specialised outlets — and would offer four essential goods such as sugar, cooking oil, flour and rice at low prices.

PJSR was a programme which offered various essential goods at prices 20% lower than the retail price and held twice a month.

The ministry added that contracts made through direct negotiations will also be dismissed.

“No new civil servant intakes will be made as well,” it said.

KPDNKK added that all policies including the Cooperative Societies Act 1993 will be revised and all agencies will have to provide a briefing regarding its way forward to the prime minister.

“The ‘Hari Koperasi Negara’ will no longer be held. The meeting has agreed to encourage the ministers to visit cooperatives in the state without additional protocols,” it said.

Furthermore, the 1Malaysia logo on corporate uniforms, certificates and miscellaneous items will no longer be used by the government.