179 Companies Deactivated from Cooking Oil Subsidy System for Violations

The Ministry of Domestic Trade and Cost of Living (KPDN) has deactivated 179 companies from the Cooking Oil Stabilization Scheme (eCOSS) system due to breaches of stipulated terms and regulations. Deputy Minister Datuk Dr. Fuziah Salleh reported that violations included exceeding permitted storage quantities, selling above set limits, distributing subsidized cooking oil to non-citizens, operating with expired licenses, and exhibiting questionable purchase-to-sale ratios. The ministry affirmed a zero-tolerance policy towards any misappropriation or non-compliance that could lead to subsidy leakage, including sales to foreigners and suspicious supply chain activities. The eCOSS system facilitates comprehensive transaction monitoring across the entire supply chain, from refineries to end consumers. Since the Mobile eCOSS pilot launch on May 1, 2025, over five million Malaysians have registered, with 91 million one-kilogram packets of subsidized cooking oil sold through the system by June 10. KPDN has received a significant number of complaints and feedback regarding the system, with over 13,000 in 2024 and increasing numbers in subsequent years, reflecting higher user engagement and a willingness to provide input for improvements. Enforcement actions have resulted in six cases involving violations of the Control of Supplies Regulations, with three cases specifically related to the sale of subsidized cooking oil packets to non-citizens.

This action by KPDN demonstrates efforts to curb irregularities and ensure the proper distribution of subsidized essential goods, protecting them from misuse and leakage.