KUALA LUMPUR: The government is absorbing the transportation costs for 1Malaysia People's Shops (KR1M 2.0) products to streamline their prices nationwide, said Datuk Seri Ahmad Zahid Hamidi.
The Deputy Prime Minister said this was necessary to ensure that the product prices, that are sold below market value, were enjoyed by all Malaysians, including Sabah and Sarawak.
He, however, declined to disclose how much the government allocates annually for this purpose.
"We are putting our efforts in coordinating the pricing, especially for Sabah and Sarawak, by giving financial assistance to not only reduce the cost of transport but the cost of distribution as well.
"By putting some allocation for transport companies to transport these products, it shows that our effort has shown good result by reducing the price of goods below the market price," he told a press conference after launching the latest KR1M 2.0 store at KK Super Mart, Terminal Bersepadu Selatan, here, today.
The store is among the 52 KR1M 2.0 stores nationwide that have either begun operations since Feb 21 or would be launching soon.
Ahmad Zahid said the recently abolished cabotage policy in the country since June 1 last year would also help maintain KR1M 2.0 prices at below market value in Sabah and Sarawak.
He also vowed that KR1M 2.0 stores would not meet a similar fate as KR1M 1.0, claiming that they are not seasonal and are here to stay permanently.
"Definitely, it will be sustainable (compared to KR1M 1.0), because we have studied the proposal tabled by Domestic Trade, Cooperatives and Consumerism Minister Datuk Seri Hamzah Zainudin and a few of its financial implications.
"We also reckon that the element of negotiating the prices with manufacturers and producers have helped bring down the prices," he said.
Different from KR1M 1.0, which repackaged items and sell them at lower prices, the second generation stores sell branded items using their original packaging and sell them below the market value.
KR1M 2.0 products are also sold at selected, existing supermarkets, convenience stores and sundry shops, compared to standalone KR1M shops previously.