Malaysian Authorities Bust Subsidised Cooking Oil Syndicate, Seize Assets Worth Rp2.71 Billion
The Malaysian government has uncovered 137 cases of subsidised cooking oil misuse in a major nationwide operation, seizing goods worth 615,936 ringgit (approximately Rp2.71 billion). The operation, conducted by the Ministry of Domestic Trade and Cost of Living (KPDN) since mid-March 2026, targeted the misappropriation of essential goods receiving government subsidies. Sabah recorded the highest number of cases with 36, involving seizures valued at 72,265 ringgit (Rp317.9 million), whilst KPDN Putrajaya recorded the largest volume of seized subsidised cooking oil, amounting to 55,445 kilogrammes from just four cases.
One of the most significant discoveries occurred in Shah Alam, Selangor, where authorities raided two warehouses believed to be the centre of a syndicate’s operations. Investigators found that the syndicate’s modus operandi involved purchasing or collecting subsidised cooking oil packets, cutting open the plastic packaging, transferring the contents into other containers, and then selling the oil to wholesale traders of used cooking oil for greater profit. During the raid, the warehouse managers were unable to produce any business licences or official documents for storing and trading subsidised goods, leading to the arrest of six individuals in their 30s, comprising one Malaysian and five foreign nationals.
Director General of KPDN Enforcement, Datuk Azman Adam, stated that the modus operandi was designed to profit from the misuse of controlled, subsidised items. In addition to 6,426 kilogrammes of subsidised cooking oil, authorities seized equipment including 13 IBC tanks, four large storage tanks, six drums, three electric pumps, hoses, a lorry, plastic packaging cutters, packing boxes, and several mobile phones, with the total seizure from the two warehouses estimated at 129,874 ringgit (Rp571.4 million). The Malaysian government has warned that individuals found guilty of misusing subsidised goods face fines of up to 1 million ringgit (Rp4.4 billion) for a first offence, or 3 million ringgit (Rp13.2 billion) and up to three years’ imprisonment for subsequent offences, whilst companies can be fined up to 2 million ringgit (Rp8.8 billion) for a first offence and up to 5 million ringgit (Rp22 billion) for repeat violations.