Kuala lumpur: Weaknesses have been identified in the implementation, monitoring, and enforcement of the subsidised cooking oil programme based on the regulations and standard operating procedures (SOP) of the Ministry of Domestic Trade and Cost of Living (KPDN).
According to BERNAMA News Agency, the 2025 Auditor-General's Report Series 2 tabled in the Dewan Rakyat today highlights several shortcomings, including the sale of subsidised cooking oil beyond the permitted limit, open sales to all consumer categories, and non-compliance with the Scheduled Controlled Goods (CSA) retail licence.
Additional issues include prices of subsidised oil exceeding the set ceiling price, the absence of SOPs for managing spoiled subsidised oil, and a lack of halal certification. The current policy does not specify that the distribution of cooking oil must target eligible and deserving groups, allowing foreigners to benefit from the subsidy.
The audit found that 55,167 kilogrammes of subsidised cooking oil were sold to ineligible parties such as eateries, restaurants, vendors, and non-governmental organisations, contravening paragraph 7.3.4(g) of the SOP under the Cooking Oil Price Stabilisation Scheme (COSS). Furthermore, 713,442 kg of cooking oil were sold above the purchase limit of three packets per transaction for each customer, as stipulated in a KPDN letter dated July 21, 2022.
The report also uncovered manipulation of sales information by wholesalers and retailers, with discrepancies in transaction records for 13,124 kg of cooking oil. Subsidised cooking oil was sold between RM2.60 and RM4.00 per packet, exceeding the controlled price of RM2.50. There was no clear procedure for managing spoiled cooking oil, leading to companies storing and repackaging spoiled oil for sale.
Out of 72 packaging companies sampled, nine did not possess halal certification, while six falsely printed halal markings on packaging. To address these issues, KPDN is recommended to regularly review and improve the COSS SOPs, set targeted distribution policies, and adopt digital systems like eCOSS for real-time monitoring to reduce data manipulation.
The audit suggests reviewing existing regulations to enforce compliance by licence holders, including suspending or revoking CSA licences for violations. Monitoring retail prices in collaboration with enforcement agencies is also advised to ensure adherence to the RM2.50 per packet ceiling price.
The ministry should develop comprehensive procedures for managing spoiled oil, including disposal methods, detection, prohibition of repackaging, and mandatory reporting. Halal certification should become a mandatory requirement for all packaging companies, with legal action against those using fake halal logos under the Trade Descriptions Act 2011. Additionally, the subsidy disbursement through the Sumbangan Asas Rahmah (SARA) programme should be expanded.