PETALING JAYA: The Domestic Trade and Consumer Affairs Ministry will suspend the operating licences of businesses found guilty of smuggling and misusing subsidised cooking oil.
This follows 75 such cases recorded between January and June, said its minister Datuk Seri Alexander Nanta Linggi.
He said the ministry has received 236 complaints of smuggling and misuse of controlled goods during the period.
“To curb the issue of entrepreneurs buying subsidised cooking oil in 1kg polybags for their business, we gazetted the Control of Supplies Act. It came into force on Oct 15 last year and all business operators that use cooking oil need to apply for their own scheduled controlled goods permit from the ministry.”
Alexander said the ministry is also advising retailers to limit the sale of 1kg subsidised cooking oil to two or three bags per individual, and to get supplies directly from wholesalers to prevent supply chain disruptions.
“Our enforcement officers will conduct periodic checks on all business operators nationwide to prevent subsidised cooking oil from ending up in the wrong hands.
“We will audit every stage of the cooking oil supply chain and investigate all those suspected of smuggling and misusing subsidised cooking oil, from the manufacturers to the retailers. This includes gathering intelligence in neighbouring countries such as Thailand.”
He said individual violators will be charged under the Act and can be fined up to RM1 million or jailed up to three years, or both. Companies can be fined up to RM3 million.
He added that to make it a more effective deterrent, offenders could also be charged under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act.
“Under this Act, those who are found guilty can be jailed up to 15 years and fined 15 times the amount received from their illegal activities, or RM5 million, whichever is higher.”
He also urged consumers who have information on people involved in smuggling or misusing subsidised cooking oil to report the matter to the ministry through www.kpdnhep.gov.my or email
e-aduan@kpdnhep.gov.my.
Meanwhile, Federation of Malaysian Consumer Associations CEO Saravanan Thambirajah said some business operators have been sending their workers to retail shops to buy subsidised cooking oil.
“Although there is a higher occurrence of smuggling involving cooking oil compared with business purchases, both are wrong. Cooking oil in polybags are meant for the B40 group, and not for businesses,” he said.