NOT all goods sold at the relaunched 1Malaysia People’s Grocery Stores (KR1M) are cheaper than the average store or hypermarket despite claims by Putrajaya.

KR1M 2.0 stores, however, are starting to attract a following from some segments of the population, such as food stall operators and those with large families.

But others believe that the difference in prices for the items on sale now is too negligible to get them to switch their shopping habits.

A The Malaysian Insight survey compared the prices of TMG KR1M 2.0 in Sri Gombak Selangor with five other shops and supermarkets in the Klang Valley.

For now, six items are part of the initiative, which gets participating retailers and suppliers to sell these goods in their own stores at below-market prices.

They are rice (10kg), sugar (1kg), cooking oil (1kg packet), Milo (1kg) and Maggi instant noodles (packet of six).   

Of these six items, only the sugar, oil and flour are consistently cheaper at the KR1M 2.0 store compared with all five other shops. These items are between five and 10 sen cheaper.

The five other retailers in the survey are a locally owned sundry shop and mini-mart also in Sri Gombak, and three well-known supermarket chains.

For instance, the price of a 10kg bag of rice was lower at the Sri Gombak mini-mart and two of the supermarkets.

Similarly, two of the supermarkets sold the same brand of instant noodles at lower prices.  

Bulk purchasers  

The difference in 10 sen for items, such as flour, is a blessing for Sazali Abdullah Sani who makes and sells traditional kuih.

He and his wife buy bags of flour in bulk and they are always on the lookout for the best offers.

“It’s worth it if you buy a lot. We use a lot of flour,” he said adding that he was not able to get the same quantity at a low price at others shops near where he lives.

“Those in my line of business need to find the cheapest raw materials,” said Sazali who lives in Sri Gombak.

Private tutor Azila Ismail also shops at KR1M, as she often has to buy in big quantities for her large family.

“Even though the difference is just 10 sen for flour, cooking oil and sugar, it helps,” said the 40-year-old.

“It’s not worth it if you I have to drive across town but since it is near my house, I often come here for groceries.”

Proximity is also another factor that figured in Normazura Mohd Tahir’s decision to shop at KR1M 2.0.

“If its close by, I will go because they said it is cheaper. But I will still compare prices and the types of goods they have before buying,” said the 57-year-old.

Currently, 51 stores in Kuala Lumpur, Pahang, Negri Sembilan and Selangor are part of the initiative, but the government plans to expand the network to thousands of shops throughout the nation in three years.

Unlike its first iteration, KR1M 2.0 does not feature new stores and one main supplier-retailer. Products are also not repackaged and rebranded with the 1Malaysia logo.

The government partners with existing retailers and suppliers and gets them to offer a selection of commonly used items at lower-than-market prices in their current shops.

The plan is to offer up to 50 goods of various brands are lower prices.

Presently, retailer chain Tunas Manja Group (TMG) and KK Mart have signed on as partners with the Domestic Trade, Cooperatives and Consumer Affairs Ministry.

The KR1M initiative was started in 2011 as part of the Najib administration’s strategy to help low-income Malaysians cope with rising prices of goods. 

Too little savings

But the small difference in price was not enough to sway all consumers, as some would rather continue shopping at their regular stores.

For them, there are other stores offering the same brand of goods at cheaper prices. 

Ida is one food stall operator not interested in changing to KR1M despite the fact that she, like Sazali the kuih seller, has to buy in bulk. 

“I buy my stuff at the wholesale market or at Mydin, as I can get them in greater quantities and lower prices. For my normal groceries, I just go to the Checkers near my house.”

Faridah, a housewife, is also wary of buying products whose prices are too good to be true as they could be close to their expiry dates.

“The difference in prices is not that much, but when people tell me it’s cheap I worry about its quality and shelf life.

In response to TMI’s survey, a senior official of TMG KR1M said the company is working with the ministry to offer lower prices for the current range of six items.

“Our sugar, cooking oil and floor are the cheapest in the market,” said the senior official who requested anonymity.  

He acknowledged that other retailers could sell Milo, rice and instant noodles at lower prices than KR1M but said it was their strategy to attract more customers.

KR1M 2.0’s prices were set in discussion with the ministry so as to provide lower prices without sacrificing quality. – February 18, 2018.