THE Ministry of Domestic Trade and Consumer Affairs (KPDN) has successfully disrupted an illegal operation involving subsidised cooking oil in a raid at a premises in Taman Semenyih Jaya, Semenyih, Selangor.
The operation, carried out by KPDN enforcement officers from Putrajaya, was the result of a three-month investigation before being launched at approximately 4pm on Tuesday.
KPDN Director-General of Enforcement Datuk Azman Adam said initial inspections of the premises revealed that the site was being used as an unauthorised storage facility for the illegal transfer of subsidized cooking oil.
“Further investigation uncovered that the premises was involved in repackaging 1kg packets of subsidized cooking oil before transferring them into intermediate bulk container (IBC) tanks, likely for resale to industrial clients.”
During the raid, enforcement teams found four IBC tanks filled with cooking oil, along with boxes and plastic bags of repackaged cooking oil.
In total, 4,168 kilograms of cooking oil, along with several pieces of equipment used in the operation, were seized for further investigation.
The total value of the confiscated goods is estimated at RM40,000.
Six individuals, including one Malaysian citizen and five foreign nationals aged in their 30s, were arrested at the scene for their involvement in the illegal operation.
All six are currently being detained to assist with ongoing investigations.
KPDN has opened an investigation under Section 21 of the Supply Control Act 1961 [Act 122], which pertains to the possession of controlled goods with intent to commit an offense.
Violators under this Act face significant penalties, including fines up to RM1 million or imprisonment for up to three years, or both. Repeat offenders could face fines of up to RM3 million or five years of imprisonment, or both.
If the company involved is found guilty, it could face a fine of up to RM2 million for the first offense, with penalties of up to RM5 million for subsequent offenses.
The company will also be investigated under the Anti-Money Laundering, Anti-Terrorism Financing, and Proceeds from Unlawful Activities Act 2001 (AMLATFPUAA 2001) for potential money laundering offenses related to the illegal oil trade.
Under AMLATFPUAA 2001, if convicted, individuals could face imprisonment for up to 15 years and fines at least five times the value of the illicit proceeds, or RM5 million, whichever is higher.
KPDN said, in a statement today, the ministry will continue to strengthen its monitoring and enforcement efforts to prevent any parties from exploiting subsidised controlled goods intended for the benefit of the public.
According to enforcement statistics under OPS TIRIS 3.0, from January 1, 2024, to February 28, 2025, a total of 94 cases involving cooking oil were reported across the country, resulting in the confiscation of 104,447 kilograms of cooking oil worth RM109,000.
This action is part of the KITA GEMPUR initiative, launched on October 19, 2024, aimed at tackling issues related to business manipulation, leakage, and the abuse of subsidized controlled goods. - March 12, 2025
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