THE Ministry of Domestic Trade and Cost of Living (KPDN) has begun nationwide enforcement operations under OPS KESAN 4.0, aimed at curbing unjustified price increases and profiteering linked to the recent revision of the Sales and Service Tax (SST), which came into effect on 1 July.
According to Minister Datuk Armizan Mohd Ali, OPS KESAN 4.0 focuses on detecting price movements and service charges that exploit the SST adjustments as a pretext for price manipulation.
He said enforcement will be guided by four key elements: the first is scrutiny of goods and services listed under the revised SST scope.
The second involves registered businesses exceeding the SST threshold, who are required to register with the Royal Malaysian Customs Department (RMCD).
The third element assesses the timing of SST registration against the timeline of price or service charge changes.
The fourth examines pricing margins to determine whether they reflect profiteering in violation of the Price Control and Anti-Profiteering Act 2011.
“Businesses are advised to consider all four aspects before making any price or service fee adjustments,” Armizan said.
He also urged businesses to consult RMCD and the Ministry of Finance for policy and compliance clarification, while seeking guidance from KPDN's Enforcement Division for matters involving profiteering indicators.
From 1 to 7 July 2025, KPDN officers inspected 281 business premises covering 1,292 Stock Keeping Units (SKUs) nationwide, including 12 premises and 60 SKUs in Kelantan.
Two companies have been issued Notices to Appear under Section 21 of the Price Control and Anti-Profiteering Act involving six SKUs, and both agreed to suspend planned price increases following engagement sessions. Four additional companies are currently in the consultation process.
As of 7 July, KPDN has received 16 complaints relating to OPS KESAN 4.0, which are now under investigation.
The ministry reiterated its commitment to ensuring that businesses do not exploit the SST changes to the detriment of consumers. - July 8, 2025
