Kedai Rakyat 1Malaysia Outlets Are Closing Down Nationwide. What's Happening?

The government-owned chain of convenience stores received an order for closure on Monday, 18 September.

  • Kedai Rakyat 1 Malaysia (KR1M) has started closing its stores across the country

    • According to a survey by Berita Harian, KR1M outlets in the country's capital city and in other states have closed down after they were issued a notice on Monday, 18 September.

      It was reported that a closure notice was put up on the storefronts that reads, "This store will be temporarily closed until further notice. Sorry for any inconvenience caused."

  • The public has raised some questions following the sudden closure.

    Here are some things that we've learned so far:

  • 1. Staff at KR1M outlets were assigned to inventory counting duties during the closure

    • A worker who was working at the KR1M outlet at the Kelana Jaya LRT station in Selangor told Berita Harian yesterday, 20 September, that the store was temporarily closed to allow stock calculation to take place.

      "We temporarily shut down this premise because we want to count our available stock, whether they have passed the expiry date or not. We received the order for closure last Monday," said the worker, who wanted to be known as Ahmad.

      He added that he was unsure when the premise would reopen.

  • 2. KR1M stores are closed for upgrading works

    • The Domestic Trade, Cooperatives and Consumerism Minister (KPDNKK), Datuk Seri Hamzah Zainuddin, said in a statement yesterday, 20 September, that the temporary closure of the KR1M outlets is part of the upgrading plans undertaken by the ministry to improve previous weaknesses.

      He said that this plan is in line with what was previously announced by Deputy Prime Minister Ahmad Zahid Hamidi earlier in July.

  • 3. This measure is a step towards the implementation of a new initiative known as KR1M 2.0

      • 0325 Image via KPDNKK Facebook
        A media statement by Domestic Trade, Cooperatives and Consumerism Minister (KPDNKK), Datuk Seri Hamzah Zainuddin on the KR1M temporary closure.
    • Hamzah said that KR1M stores will be upgraded to "encourage better collaborations between government agencies and open business opportunities to local manufacturers and producers", besides improving the current services provided.

      Previously, he announced in August that the government will be launching KR1M 2.0 to ensure that cheaper daily provisions will be offered to consumers.

  • 4. In July, KPDNKK was instructed to terminate the contract of the KR1M operator for selling goods higher than the market price

    • Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi reportedly said in July that Hamzah was told to terminate contract with "errant companies and appoint new ones that show the proper responsibility to the people" after he found out that KR1M stores were selling goods with low-quality packaging and distribution at high prices.

      KR1M is an initiative proposed by Prime Minister Datuk Seri Najib Razak in June 2011 to ease the rakyat's burden, on top of helping to market products by local operators of Small and Medium enterprises (SMEs).

      The KR1M stores were supposed to offer various types of daily necessities at a lower price — up to 30% to 50% cheaper than other stores and supermarkets. However, the operator of the KR1M stores were found to sell goods at more expensive prices than other competitors.

  • 5. Meanwhile, a KR1M outlet in Tudan, Miri, has been shut down due to "economic reason"

    • The matter was confirmed yesterday by KPDNKK, as reported by Bernama.

      According to KPDNKK Miri branch chief, Joe Azmi Jamil, the outlet has suffered losses as it could not compete with supermarkets and hyper malls in the city.

      He said that the operator of another outlet in Pujut, is still operational, but admitted that it too is also facing similar problems. However, he said that the situation is "under control" and things are expected to get better when the new operator of KR1M takes over.

  • What do you think can be done to ensure that the KR1M 2.0 initiative would be better than its predecessor? Let us know your thoughts in the comment section below.

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