Plugging a subsidy leak


PETALING JAYA: More than 13,000 business premises have been inspected nationwide since the March 1 ban on the purchase of 1kg subsidised cooking oil packets by non-citizens.

The Domestic Trade and Cost of Living Ministry, which disclosed this, said 3.69 million Malaysians also registered with the Cooking Oil Price Stabilisation Scheme System (eCOSS) app.

The app is used to ensure only Malaysians can purchase subsidised cooking oil.

Under the current mechanism, each Malaysian citizen is limited to buying a maximum of 3kg, or three 1kg packets, of subsidised cooking oil in a single transaction.

The ministry said 13,564 ­premises were checked by enforcement teams to ensure compliance with the new rule, covering the entire distribution chain from packaging companies and wholesalers to retailers.

The ministry said transactions involving non-citizens buying subsidised cooking oil is an offence under the Control of Supplies Act 1961, which can result in compound fines or prose­cution in court, with sellers to face the music too.

In a response to The Star, the ministry said the ban was formalised under the Control of Supplies (Prohibition on Sale and Purchase of Controlled Goods) (Cooking Oil) Regulations 2026.

It said the regulation was ­introduced to ensure the subsidy benefitted only Malaysians and to curb leakages, including smuggling and purchases by ineligible parties.

To enforce the rule, traders can verify buyers’ citizenship through the eCOSS mobile app, which uses electronic know-your-customer (eKYC) technology.

Users must register and complete verification by uploading a photo of their MyKad and selfie for automatic authentication. The app is also integrated with MyDigital ID.

For buyers without smartphone or Internet access, traders must manually record the sale and physically check the buyer’s MyKad before updating the transaction in the eCOSS system.

The ministry said the app has yet to be fully rolled out across all retail outlets nationwide, but consumer-­level use has been expanded in phases since last October starting with supermarkets and selected retailers.

As of this month, the app was used at 8,691 retail premises, with 3,691,669 Malaysians registered.

This marks a sharp increase from 2,270,208 users as of Jan 26, according to an earlier The Star report.

As of March 12, the ministry said it had received seven complaints related to the new rule, involving allegations that sellers had sold 1kg packets of subsidised cooking oil to foreign nationals.

Of the seven complaints, three are still under investigation, while four were found to be unsubstantiated or to lack sufficient information.

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