If there's any threat to the Chinese shopkeepers in Malaysia, its the perceived threat coming from the Kedai Rakyat 1Malaysia. Why today in MM, a Chinese businessman by the name of William Cheng, who heads the Lion Group Corporation, fears that some 30,000 shops run by Chinese shopkeepers all over the country will face uncertain future if the 1Malaysia-concept shops offer goods at 30 to 40 percent cheaper than the Chinese shops. Now, what's wrong with that if they benefit the consumers ! If these Chinese shops fear that that they will be out of business, well it's about time that they start being more competitive by selling their goods at prices to match what the so-called rakyat shops can offer.
For years, the Chinese have been having an almost absolute monopoly of sundry shops across the length and breadth of Malaysia, whether in the Peninsular or in Sabah or Sarawak, even indeed in Indonesia, Philipines and Thailand and for years and years, we the Malays have no option but to buy goods from shops run by Chinese shopkeepers who have been making 30 to 40 percent profits as William Cheng implies.
Most probably, the concept of the rakyat shops came from Najib himself, who, by encouraging Mydin Hypermarket to get Bumiputras or Malays to set up shops in every town or village in Malaysia with goods supplied by the hypermarket giant at Mydin's prices which are generally cheap (30 to 40 percent lower than at normal sundry shops), then rising prices in goods, especially, daily consumables, can at least be checked together with inflation which the country is facing right now.
Cheng complains that the government is unfair to the Chinese shopkeepers by aiding Mydin to get their goods at cheap prices but the government has never ever been in the trading business with Mydin or anybody else. The government has nothing to do with what Mydin is doing. What the government does is to encourage Mydin to assist Bumiputra or Malay shopkeepers to set up sundry shops with goods supplied by Mydin. Those rakyat shops, "licensed or franchised" by Mydin are required to follow Mydin's style of doing business. And what's wrong with that if, in the final analysis, consumers stand to greatly benefit from lower prices. Cheng is one of the many, many Chinese businessmen in this country that hate to see the Malays succeed in business, even if the business is merely a small sundry shop tucked among the many Chinese shops in a small town in Kedah say. To him, business is the prerogative of the Chinese - the Malays pergi mampus, balik kampung tanam pisang. I have met this kind of Chinese before who drives in Mercedez chauffered by a Malay driver and who thinks that that's the best occupation for a Malay. He's now beginning to think that KR1M shops, so far only 4 have been set up, pose a threat to the thousands upon thousands of Chinese shops in the country. This man is dangerous and the government of Malaysia, nay, the Malay and Bumi people of this country, should take cognizant of this fact.
Mydin's strategy is to buy goods in volumes at wholesale prices and sell them to the consumers at much lower profit margins while the Chinese shopkeepers buy the same goods wholesale at prices similar to Mydin's, yet, instead, they sell them at considerably high profit margins (the 30 to 40 percent that Cheng talks about). And now, they complain that their business is in danger of being wiped out by the rakyat shops.