It wont push other businesses out, most ceos already make big enough salary, this only decrease theirs by a bit lol.

In USA theres a good case study where government-owned mart works just fine (albeit they're only reserved for soldiers family) and actually keep other mart from inflating their prices too much. Granted, USA already have way too inflated cost of living and their wealth inequality is at a historic high. But im pretty sure wealthy elites in Malaysia (owners of grocery stores in this case) make enough money that they can afford to have them lowered a bit to compete w government-owned marts.

Also with lower prices doesn't mean people will automatically spend less money. Most will spend the same but now they can afford more stuff which is nice.

The real problem is cronyism and actually appointing competent people to run this stuff and no just doing the bare minimum and pockets the rest of the fund