The prices of Kedai Rakyat 1Malaysia 2.0 (KR1M 2.0) goods in East Malaysia will be the same as in Peninsular Malaysia thanks to government subsidies, said Deputy Prime Minister Ahmad Zahid Hamidi.

At the launch of the second batch of KR1M 2.0 shops in Kuala Lumpur today, Zahid said the government will provide financial assistance to keep the transport costs of KR1M products low.

"That way Sabah and Sarawak can enjoy the same prices," he said.

KR1M is a government project which sells basic retail goods slightly below market price. The first phase, involving east coast outlets managed by TMG Mall, were launched last month...