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Govt to absorb transportation cost to keep goods prices low in KR1M 2.0 stores

Datuk Seri Ahmad Zahid Hamidi at the launch of the KR1M 2.0 at Bandar Tasik Selatan with its strategic partner KK Super Mart today, March 21, 2018. ― Picture by Azneal Ishak
Datuk Seri Ahmad Zahid Hamidi at the launch of the KR1M 2.0 at Bandar Tasik Selatan with its strategic partner KK Super Mart today, March 21, 2018. ― Picture by Azneal Ishak

KUALA LUMPUR, March 21 — The government will pay transportation costs to deliver goods to Kedai Rakyat 1Malaysia (KR1M) 2.0 stores to keep prices down says Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi.

Zahid who is also the chairman of the Living Costs Task Force said transportation cost was identified to be the main reason for prices of goods to escalate after he told Domestic Trade, Cooperatives, and Consumerism Minister (KPDNKK) Datuk Seri Hamzah Zainuddin to work on drastic measures to reduce the price of goods.

He said the study with recommendations and financial implications was tabled in Cabinet also suggested measures that will be able to standardise price of goods in Peninsular Malaysia with Sabah and Sarawak.

“We reckoned to negotiate prices with manufacturers and producers to bring down prices below market levels and to allow qualified franchise holders to manage the KR1M 2.0 outlets,” he said during the launch of the KR1M 2.0 at Bandar Tasik Selatan with its strategic partner KK Super Mart today.

He added, a certain allocation will be set aside by the ministry for transportation, but did not say how much it would be.

“We have also ensured that there is no compromise on the quality and branding of each product sold at KR1M 2.0.

“Previously in the KR1M 1.0, the product sold at the outlets had the logo of the franchise on the packaging,” he said.

However the perception of buyers meant that many preferred purchasing products based on its brand, leading to the change in KR1M 2.0.

“Another concern about the products' brand is not so much about its quality but rather the trust customers have in it,” said Zahid.

KR1M 1.0 was established in 2011 and operated by Mydin Mohamed Holdings Bhd and it was shut down last September following reports that the items sold were more expensive than market prices.

KR1M 2.0, was then launched on February 4 and now has 52 outlets nationwide. KPDNKK is targeting at least 3,000 outlets by 2020.

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