PRICES of goods at Kedai Rakyat 1Malaysia 2.0 (KR1M 2.0) are kept low and consistent across the country, including Sabah and Sarawak, because Putrajaya absorbs the cost of transportation, Deputy Prime Minister Ahmad Zahid Hamidi said.

The Domestic Trade, Cooperatives, and Consumer Affairs Ministry does this to maintain standardised prices below the market rate, he said at the launch of KR1M 2.0 at the Southern Integrated Terminal in Bandar Tasik Selatan today.

“The ministry provides an allocation for transport companies to move the goods. It results in prices being lower,” he said.

The latest KR1M 2.0 store launched today adds to 51 other outlets that began operations in February under a rebranding of the earlier KR1M programme, which targets lower-income consumers.

The original scheme in 2011 was contracted to hypermarket retailer Mydin, but ceased in September last year after suffering more than RM100 million in losses.

Mydin managing director Ameer Mydin Ali said a huge chunk of costs had been logistics, especially for rural areas in Sabah and Sarawak.

KR1M 2.0 is implemented in cooperation with selected supermarket chains and sundry shops. – March 21, 2018.