HAMZAH: KR1M 2.0 WILL BE EXPANDED TO SUNDRY SHOPS
It will include sundry shop owners in its network, says minister
KEDAI Rakyat 1Malaysia (KR1M) 2.0’s operations are set to expand even further with the inclusion of independent sundry shops as part of the government’s efforts to alleviate the high cost of living for the public.
Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said the move, which forms the third phase of KR1M 2.0, would be powered by the supply of goods by the Tunas Manja Group (TMG).
Hamzah said this was part of the government’s initiative to help small independent sundry shop owners boost their sales, as well as to add variety to a range of quality products at fair prices.
“We will not be hasty in ironing out an agreement with independent grocery shops to include them in the KR1M 2.0 network, as several factors need to be taken into account.
“The main factor will be TMG’s ability to absorb logistics costs into the supply chain so that the essential goods sold at these independent grocery shops are offered at fair prices.
“This forms the third phase of KR1M 2.0 after TMG and KK Mart, which utilise the supermarket and convenience store concepts,” he said, adding that the initiative to expand the programme to sundry shops was in line with the ministry’s efforts to open 3,000 KR1M 2.0 outlets nationwide by 2020.
Present at the media briefing yesterday were Perbadanan Nasional Bhd (PNS) chairman Datuk Seri Syed Ali Syed Abbas Al-Habshee and chief executive officer Datuk Syed Kamarulzaman Syed Zainol Khodki Shahabudin.
PNS is the main operator of KR1M 2.0. Besides TMG as the supermarket anchor, KK Super Mart is the convenience store partner for the programme.
Hamzah said TMG had experienced a seven per cent growth in sales to date since the launch of the programme on Feb 4.
TMG’s improved performance in the short period of time, he said, was evidence that the programme was relevant and wellreceived by the rakyat.
“Since the launch of TMG as the anchor for the KR1M 2.0 programme, the supermarket operator has experienced a significant growth in its sales numbers.
“We see the programme as being well-received by the rakyat, with its products priced affordably.”
Hamzah said KR1M 2.0 was a redevelopment of KR1M, where its had been redesigned to be more open, competitive and accommodate more retailers.
His comment came on the heels of KR1M’s previous operator Mydin Group managing director Datuk Dr Ameer Ali Mydin’s remark that the programme had caused a “massive loss of RM100 million” to the company.
The minister said statistics showed that Giant hypermarkets, which had been long-established in Malaysia, for example, had decided to close eight of its outlets but also opened a new one.
“I have spoken to the Giant management to ask about why they closed their outlets. The feedback I received was that it was related to a location management strategy, and not due to dwindling sales.”