The Domestic Trade and Cost of Living Ministry (KPDN) will act on the Public Accounts Committee’s (PAC) recommendations on cooking oil subsidy management, including speeding up the rollout of the Cooking Oil Stabilisation Scheme System (eCOSS) to address subsidy leakages, Minister Datuk Armizan Mohd Ali said. The PAC’s recommendations were presented in its report to the Dewan Rakyat on 16 July.
Armizan said eCOSS, introduced in 2023, is being rolled out in two phases, gradual enforcement across the supply chain, and expansion through the eCOSS Mobile Application, which has been on a pilot run since May 2025.
QR Codes Added To New MyKad
KPDN will use the QR code on the new MyKad to let users verify purchases, Armizan said.
This is expected to allow targeted distribution and help prevent foreign nationals from buying subsidised cooking oil, a ban already in effect since March 2026 for 1kg packets, which are priced at RM2.50 a kilogramme.
Refinery Quotas Also Under Review
KPDN will also look into the PAC’s recommendation to redistribute cooking oil refining quotas to favour competitive local companies over foreign-owned firms. The government has not determined refinery quotas since the Cooking Oil Stabilisation Scheme (COSS) was introduced, with suppliers and refineries currently selected by repackers based on logistics costs, credit terms, pricing and supply capacity, Armizan explained.
He added that KPDN is introducing phased measures to encourage repackers to source from locally owned refineries, including quota replacement requirements and a business matching mechanism between local refiners and repacking companies.
Other steps introduced to improve the scheme include integrating eCOSS with the Sumbangan Asas Rahmah (SARA) system and streamlining enforcement, he said.
Leakage Leads To Shortages
The eCOSS system doesn’t change the RM2.50 price of subsidised 1kg cooking oil packets. Instead, it’s meant to reduce leakage so more subsidised cooking oil reaches retailers and consumers.
Unsubsidised bottled cooking oil starts from around RM6.90 per kg, making subsidised packets an important option for many households.
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