For now, it’s biz as usual at KR1M 2.0

There could be some improvements for KR1M 2.0 under the new minister, says KPDNKK sec-gen


Kedai Rakyat 1Malaysia (KR1M) 2.0 is operating as usual for now as there is no new directive from the new Pakatan Harapan government with regards to the programme, said Domestic Trade, Cooperatives and Consumerism (KPDNKK) secretary general Datuk Seri Jamil Salleh.

Jamil also dismissed an internal memo which has been widely reported as stating that KR1M 2.0 will be stopped by the newly-elected administration.

“I don’t know who wrote that memo. KR1M 2.0 is still ongoing as normal. There are no new directives and we have not taken any actions,” Jamil told The Malaysian Reserve (TMR).

At present, Jamil said the ministry is still waiting for a new minister to helm KPDNKK.

Nevertheless, Jamil could not say anything in definite terms on what could happen to KR1M 2.0 under the new government, and any updates shall be announced in due time.

“Any policy can be changed and that is no problem. We can discuss policies later on, but for now, we have not done any (changes) just yet. There could be some improvements for KR1M 2.0 under the new minister,” he said.

Perbadanan Nasional Bhd (PNS), the appointed body to spearhead the KR1M 2.0 initiative, declined to comment on the latest development of the programme when contacted.

PNS previously said KR1M 2.0 is expected to offer more than 100 items to consumers at 5% to 10% cheaper prices, after negotiations with producers to enlarge the present offering of about 50 items.

Some of the existing suppliers and manufacturers include Nestlé (M) Bhd, Central Sugars Refinery Sdn Bhd, FFM Bhd and Padiberas Nasional Bhd.

KR1M was first launched in 2011 with Mydin Mohamed Holdings Bhd as the main operator, aimed at offering in-house essential products at prices 30% to 50% cheaper than general retail prices to reduce the high cost of living.

Since its first outlet opened in Kelana Jaya, KR1M has received criticisms for its operations, as well as the very idea of it.

KR1M outlets have met with recurrent claims of tainted food products, overpriced items and anti-competitive policy in nature for a market that is largely saturated with sundry shops, supermarkets and hypermarkets.

KR1M 1.0 reached closure in September 2017 before the previous government re-launched the initiative — KR1M 2.0 — in February, when Mydin was dropped and a new concept that would no longer operate on a franchise basis, but open to all parties keen to open their own business outlet.

The move was aimed at eliminating the role of the middlemen in the supply chain of essential items as KR1M 2.0 operators would receive the supplies direct from suppliers under the ministry.

KR1M 2.0 has more than 50 outlets to date, part of a projection made of 3,000 outlets by 2020.