Ministry explains reason behind closure of KR1M Tudan

MIRI: The Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) confirmed today that one of the Kedai Rakyat 1Malaysia (KR1M) operating in Miri City has been shut down for economic reasons.
KPDNKK Miri branch chief, Joe Azmi Jamil 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,” he told Bernama here today.
Joe Azmi, however, admitted that the sole operator of KR1M in Miri City was facing similar problems but the situation was still under control. He expects the situation to be back to normal once the new operator of KR1M takes over.
The KR1M operation in Sarawak was embroiled in controversy in April of last year, when there were allegations of abuse of the items being sold at these retail outlets, that led to the shortage of supplies.
The allegations resulted in a surprise visit by the ministry’s Deputy Minister Datuk Henry Sum Agong at the Miri KR1M after which, he denied there were elements of abuse involved as the supplies were adequate.
In August, the Minister, Datuk Seri Hamzah Zainuddin announced that the government would be launching KR1M 2.0 soon to help reduce the cost of living, with new operators taking over the daily running of KR1M.
KR1M was mooted by Prime Minister Datuk Seri Najib Tun Razak in June 2011, with the aim of reducing the people’s burden from the rising cost of living, and to assist local small and medium enterprises. — Bernama