Malaysia Accelerates Cooking Oil Subsidy Reform and Cracks Down on Illegal Storage

Malaysia's Ministry of Domestic Trade and Cost of Living (KPDN) is overhauling the Cooking Oil Stabilisation Scheme (COSS) after a Public Accounts Committee recommendation. The ministry plans to give priority to locally owned refineries, introduce tighter quota controls and enforce a price cap of RM2.50 per kilogram for pure palm cooking oil. A digital eCOSS system will be linked to the new national identity card, allowing consumers to verify eligibility via QR codes and preventing foreign purchases. Additional measures include prohibiting the sale of subsidised 1 kg packets to non‑citizens, SOPs for waste and damaged oil, and integrating eCOSS with the SARA assistance scheme.

In enforcement action, KPDN seized about 6,426 kg of subsidised cooking‑oil packets from two storage sites in Subang, confiscating equipment and arresting six individuals – three locals and three foreign nationals. The raid is part of a broader crackdown that has recorded 137 cases and seized over 165,000 kg of subsidised oil nationwide since the launch of Operation Tiris 4.0.