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THE Domestic Trade and Cost of Living Ministry (KPDN) will intensify enforcement measures from 1 March 2026 in a bid to eliminate leakages under the Cooking Oil Price Stabilisation Scheme, including licence revocations, digital system deactivations and uncompromising prosecutions.
Deputy Minister Datuk Dr Fuziah Salleh said the government remained firmly committed to closing all avenues for subsidy abuse through tighter controls and full enforcement, supported by the eCOSS digital monitoring system.
The enhanced measures will target retailers, wholesalers and any parties found to be in breach of the law.
Sanctions will include cancellation of licences under the Supply Control Act 1961, deactivation of company profiles within the eCOSS system and prosecution without exception.
Individuals convicted under the Act face fines of up to RM1 million or imprisonment of up to three years, or both, for a first offence.
Repeat offenders may be fined up to RM3 million or jailed for up to five years, or both. Companies may be fined up to RM2 million for a first offence and up to RM5 million for subsequent offences.
Speaking while winding up the debate on the Supplementary Supply Bill at committee stage in the Dewan Rakyat on Thursday, Fuziah said the scheme does not rely on a single enforcement mechanism but is underpinned by a comprehensive ecosystem of controls spanning the entire supply chain of one-kilogramme subsidised cooking oil packets.
These measures include mandatory registration and licensing of industry players, digital recording of transactions, traceability of supply movements and continuous monitoring from manufacturers to retailers.
“This approach closes the space for manipulation, misappropriation and subsidy leakages in a systematic and evidence-based manner.
“Through COSS and eCOSS, KPDN strengthens subsidy governance by enabling early detection of non-compliance as well as faster and more targeted enforcement action,” she said.
The ministry is also expanding the use of the Mobile eCOSS application at retail level to record sales transactions directly at business premises, a move aimed at curbing irregularities, including purchases by foreign nationals at the final stage of the supply chain.
Enforcement records from 2024 to February 2026 show 940 cases of misappropriation and non-compliant distribution of subsidised cooking oil nationwide, with 755 arrests carried out.
“KPDN is confident that sustained enforcement will close the space for subsidy leakages, strengthen the integrity of government assistance management and ensure that subsidised cooking oil packets are fully utilised by eligible Malaysians, in line with the MADANI Government’s principles of efficiency, integrity and social justice,” Fuziah added. - February 27, 2026
