KUALA LUMPUR, Sept 25 — The shuttering of multiple Kedai Rakyat 1Malaysia (KR1M) outlets nationwide is merely temporary and not related to the country’s current economic condition, Barisan Nasional (BN) MP Hasbi Habibollah has said.

Hasbi said the shutdown is meant to allow for the KR1M stores to be upgraded for the second phase of the government-backed initiative.

"This is in line with the announcement by Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi in July this year, in which he said the closure of the KR1Ms was meant for improvement purposes.

"Various agencies are now working closely to prepare for the KR1M 2.0,” the Limbang MP was quoted saying yesterday by local daily The Borneo Post.

Hasbi reportedly expressed hope that this would end speculation that the KR1M closures were caused by Malaysia’s present economic situation, also giving his assurance that the rebranded stores that would be launched soon would provide a wider range of choices and lower prices compared to the usual supermarkets.

"Under KR1M 2.0, it is expected that the new stores would become the platforms for local entrepreneurs and cooperatives to market their products,” the Sarawak lawmaker said.

In a separate report by local daily The Daily Express, Sabah’s state community development and consumer affairs minister Datuk Jainab Ahmad similarly said the closure of KR1M stores there was unrelated to rising good prices and was a temporary move for the upgrading of the stores.

On Friday, Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin said the KR1M stores’ temporary closure is part of the ministry’s upgrading plans as announced in July, with more information on the KR1M 2.0 initiative to be made available soon.

Following allegations that essential goods at the KR1M stores were sold above market price, KR1M’s main operator Mydin had in July said the stores were a loss-making corporate social responsibility project that it had carried out for the public’s benefit.

In 2015, Mydin had told Malay Mail Online that it offered cheaper prices than its competitors for in-house goods of similar quality without relying on government subsidies for the products sold.

The KR1M stores were first launched in 2011 to mitigate rising living costs.