‘KR1M stores in Sarawak a stupid move’

The federal government should just scrap the cabotage policy if it really wants to score with the voters in Sarawak and Sabah.

KUCHING: The Kedai Rakyat 1Malaysia (KR1M) will not resolve the economic woes of Sarawakians and whoever suggested this to the Prime Minister must know its a stupid move, said state opposition PKR.

“It will not resolve economic woes. It will pose a strong competition to genuine traders in the villages and the towns. You are actually killing all these traders. Only the cronies of Barisan Nasional will benefit,” said state chief Baru Bian.

Bian said what needs to be done is to scrap the cabotage policy which has been in place since 1982.

“A fundamental issue here is transportation to Sabah and Sarawak – the cabotage should be done away with.

“Once this is done it will automatically reduce the transport costs. All ships will go to Port Klang and re-ship to Sabah and Sarawak and that is the problem.

“If goods are directly shipped to Sabah and Sarawak, it will be cheaper,” he said.

Bian was commenting on the government’s plan to introduce KR1M stores here beginning next year.

Sarawak currently has two KR1M stores – both in Kuching. Under Budget 2013, Prime Minister Najib Tun Razak’s government has allocated RM87 million to set up 57 KR1M stores in all 57 constituencies in Sarawak, Labuan and Sabah.

On Monday the Minister of Domestic Trade, Cooperative and Consumerism Ismail Sabri Yaakob announced the setting up of one KR1M in each of Sarawak’s 31 parliamentary constituencies. Sabah will see 26 stores including one in Labuan.

Ismail also said that plans were afoot to implement a third model of KRIM which involved local entrepreneurs.

The plan to set up KR1M stores in Sarawak and Sabah has come under heavy attack from consumers, activists and opposition in these two states.

Many have also questioned the RM6.7 million allocation to set up a KR1M store in Sabah and Sarawak when it only costs RM470,000 per store in the Peninsular.

Last year the federal government set aside RM40 million to set up 85 KR1Ms.