
The Malaysia Retail Chain Association (MRCA) today said businesses and investors were “very concerned” with the latest developments surrounding KK Mart, which has been embroiled in controversy after mistakenly selling socks with the word “Allah” at one of its branches.
MRCA, which represents the interests of over 550 retail chains in the country, warned that the issue would scare off investors as it painted a “negative image” for business growth and sustainability.
“This harsh, unprecedented action ultimately goes against the principles of natural justice. This, in turn, will affect any decision to expand or scale up their businesses locally and internationally.
“The treatment afforded will only discourage new foreign direct investment (FDI) coming into the country despite the government’s efforts to bring more FDI into Malaysia,” it said.
MRCA said while it respected Malaysians’ right to freedom of speech as enshrined in the Federal Constitution, it did not condone action which could trigger public sentiment on sensitive matters relating to race, religion and royalty.
Although MRCA’s statement did not mention it, Umno Youth has been calling for a nationwide boycott of KK Mart’s nearly 800 stores since photographs were circulated on social media on March 13 showing the socks bearing the word “Allah” found at a KK Mart branch in Bandar Sunway.
KK Mart’s management and the vendor which supplied the socks had issued an apology over the incident.
The vendor, Xin Jian Chang Sdn Bhd, a local company based in Johor, said it had contacted its supplier in China for an explanation, and that the supplier admitted the socks were included in stocks purchased “by mistake”.
Xin Jian Chang’s factory has been temporarily closed by the Batu Pahat Municipal Council.
KK Mart’s founder and director, Chai Kee Kan and Loh Siew Mui, were charged yesterday with intentionally wounding the religious feelings of Muslims by selling the socks, while three of Xin Jian Chang’s top officials were charged with abetting. All claimed trial.
They face imprisonment of up to one year, a fine, or both upon conviction. The prosecution also charged KK Mart and Xin Jiang Chang as entities in the case.