More reasonably priced goods under KR1M 2.0

THE government on Sunday launched the Kedai Rakyat 1Malaysia 2.0 as a rebranding exercise of KR1M, which was introduced in 2011. Domestic, Trade, Cooperatives and Consumerism (KPDNKK) Minister Datuk Seri Hamzah Zainuddin sat down with Berita Harian’s Ahmad Suhael Adnan to explain the government’s strategy to ensure consumer goods are kept below market price.

Question: How much was allocated by the government for the implementation of KR1M 2.0?

Answer: There was no allocation. KR1M 2.0 is different from KRIM as it is based on collaborations and smart partnerships with entrepreneurs, suppliers and producers. Based on these partnerships, the government does not have to allocate funds.

How does KPNDKK ensure that prices of goods at KRIM 2.0 outlets are below the market rate?

These smart partnerships have their own strategies to ensure that prices are lower than the market. I cannot reveal the strategy in detail, but the method is to create a win-win situation for the companies, government and people.

These partnerships also involve a number of major production companies, such as Nestle, Kumpulan Etika, Central Sugar Refinery Sdn Bhd. The ministry is also discussing how to increase the number of popular products in the outlets.

What is the price difference between goods in KRIM 2.0 stores and those available in the market?

I do not set any percentage, but the prices are definitely reasonable and below the market price. We cannot just state something in percentages. I do not want to give percentages as it may look like the difference is small in terms of price when it is actually a lot.

Prior to this Mydin Mohamed Hold- ings Bhd (Mydin) admitted to suffering losses in KR1M. How does the ministry ensure that it does not happen again under KR1M 2.0?

God-willing, all that we do with KR1M 2.0 will be a win-win situation for all. We want to create a new business model that allows opportunities for the participation of entrepreneurs and producers, instead of it being monopolised by only one company. This will give opportunities to all.

Will KR1M 2.0 have its own premises or will the goods be placed in premises that work together with KPDNKK?

We see an example from the shop launched yesterday (in Temerloh, Pahang) namely TMG (Tunas Manja Group). TMG works with KR1M 2.0. Through this collaboration, goods in TMG that are involved in this initiative will bear KR1M 2.0 tags so consumers can differentiate the prices.

Instead of spending large sums to open KR1M 2.0 stores, this is what we do in- stead. To date, we have appointed two retail companies namely, TMG and KK Mart, as strategic partners of Perbadanan Nasional Bhd as the operator of KRIM 2.0 and there are still five retail companies who have applied to be our strategic partners.

How about previous KR1M premises?

They were not under the ministry’s ownership.