Reason Behind Closure of KR1M

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Yesterday, the reason for closure was cited as for economic reason, but today, it is said to be part of the upgrading process through the KR1M 2.0 initiative.

The Malay Mail Online reported yesterday a Kedai Rakyat 1Malaysia (KR1M) operating in Miri City has shut down for economic reason.

Aiman Amerul Muner/Malaysiakini

Joe Azmi Jamil, Miri branch chief of the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) said the KR1M in Tudan was closed down because the operator suffered losses competing with supermarkets and hypermalls in the city.

“Right now, only one KR1M, in Pujut, Miri City is still in operation,” the report cited Joe Azmi telling Bernama yesterday.

He conceded that this operator was also facing similar problems but the situation was still under control and is expected to be back to normal when the new operator of KR1M takes over the operation.

Last April, the KR1M operation in Sarawak was embroiled in controversy over claims of abuse of the products sold at these retail outlets which caused the shortage of supplies.

Following his surprise visit to the Miri KR1M, KPDNKK Deputy Minister Datuk Henry Sum Agong denied there were elements of abuse involved as the supplies were sufficient.

In August, the minister, Datuk Seri Hamzah Zainuddin said that the government would be launching KR1M 2.0 soon to help bring down the cost of living with new operators taking over the daily running of KR1M.

Aiman Amerul Muner/Malaysiakini

Today, The Star Online reported that the temporary closure of KR1M is part of the upgrading process as Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi had said in July, according to Hamzah.

The minister said it was part of the ministry’s upgrading plans through the KR1M 2.0 initiative to offer essential items at a lower price with more choices of goods to customers, as well as open business opportunities to local manufacturers and producers.

Hamzah added that further information on the upgrading will be announced soon.

KR1M, which opened its first outlet in June 2011, is the brainchild of Prime Minister Datuk Seri Najib Tun Razak. It aims to reduce the people’s burden from the rising cost of living and assist local small and medium enterprises.