Despite years of crackdowns and initiatives, Malaysia's subsidised cooking oil continues to flow into Thailand, creating a persistent cross-border leakage that impacts vulnerable Malaysian consumers, particularly the B40 community. Priced at RM2.50 per kilogram for domestic use, this subsidised product remains out of reach for many Malaysians as smugglers exploit price differences, diverting it to Thai markets where it fetches nearly double the price.
A recent undercover investigation by Harian Metro reveals the stark reality of this ongoing issue. Over a four-day probe that spanned multiple towns in Southern Thailand, including Sadao, Hat Yai, Songkhla, and Pattani, reporters discovered that Malaysian subsidised cooking oil is readily available in more than 50 stalls, grocery stores, and supermarkets. Despite the label "for domestic use only," the oil is openly sold, bearing the names of Malaysian packaging companies.
Smugglers have capitalised on price disparities between the two countries. The Malaysian-subsidised 1kg polybags, priced at RM2.50, are sold in Thailand for as high as 40 Baht (RM5.20). The economic appeal of these products to Thai consumers, particularly restaurant owners, is evident, as they opt for the cheaper and more accessible alternative to Thai cooking oil.
Rosli, a Malaysian trader in Betong, confirmed the scale of the issue, stating that the smuggling of subsidised cooking oil has persisted for over a decade. “It’s not easy to control. The smugglers have their discreet ways of getting it across the border, mixing it in with other vast exports of goods,” he said, adding that the demand for Malaysian cooking oil far surpasses other subsidised goods like petrol and sugar.
The investigation also uncovered a broader smuggling operation, with subsidised RON95 petrol from Malaysia being sold on the roadside in Yala at 33 Baht (RM4.15) per litre, significantly lower than the local price of 42 Baht (RM5.36) at gas stations.
The findings raise troubling questions about the involvement of manufacturers and packagers in the smuggling ring, given that 12 different brands of subsidised oil from factories in five states were found in Thai markets. Despite the efforts of Malaysia's Domestic Trade and Cost of Living Ministry, the smuggling continues unabated, and the question of accountability remains.
This cross-border leakage not only deprives Malaysians of a crucial subsidised product but also underscores a more profound issue ie. ineffective border control and enforcement. If left unchecked, the smuggling of subsidised cooking oil will continue to erode Malaysia’s subsidy system, leaving vulnerable citizens to bear the brunt of this illicit trade.
By: Kpost
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