No hypermarkets in inland areas, says the minister

KUALA LUMPUR: Minister of Internal Trade and Consumer Affairs, Saifuddin Nasution Ismail, said the government would not allow hypermarkets to operate in peripheral and inland areas, as part of efforts to help small shops various to operate there.

He added that hypermarkets currently control 65% of the retail trade in the country, the remaining 35% being held by small shops.

"Hypermarkets really want the government to lift the restrictions so they can also operate in the interior areas.

"We will not allow it because it will affect the small retail business," he said closing the debate at the 2019 budget committee for Dewan Rakyat last night.

He added that the government had to weigh in the balance even though he knew that the presence of hypermarkets in peripheral areas would allow consumers to have cheaper retail items.

"The advantage of hypermarkets is that they can buy products at low prices, that they are price sensitive, that they buy in large quantities and sell them at cheap prices.

"If we allow them to go to the outlying areas, it would benefit consumers, but the various stores would die."