THE northern border regions, particularly Perlis, Kedah and Langkawi, have been identified as among the most critical hotspots for the misuse and smuggling of subsidised fuel, authorities have revealed.
Home Minister Datuk Seri Saifuddin Nasution Ismail said the assessment was based on enforcement records compiled by the Malaysian Maritime Enforcement Agency, highlighting persistent illicit activities along both land and maritime borders.
“Fuel smuggling activities in these zones have been detected using various modus operandi, including through land routes and border waters,” he said during a press conference at the Padang Besar ICQS Complex on Saturday.
His remarks come amid growing concern over subsidy leakages, driven in part by the widening price gap between subsidised domestic fuel and open market rates.
The minister disclosed that Malaysia’s monthly fuel subsidy expenditure has surged dramatically from around RM700 million to nearly RM6 billion, reflecting mounting pressure from global economic conditions.
He outlined distinct patterns of smuggling activity across different regions. In the east coast states of Kelantan, Terengganu and Pahang, subsidised fuel is being collected at fisheries jetties before being transferred via ship-to-ship operations in offshore waters.
“In the eastern zone such as Kelantan, Terengganu and Pahang, there are activities involving the collection of subsidised fuel at LKIM jetties, but it is used for ‘ship to ship’ activities in the waters of the Exclusive Economic Zone.
“In the southern zone, in the Strait of Malacca and Johor, it involves unauthorised bunkering activities. In Sabah, it involves several areas including Sandakan, Lahad Datu, Semporna and Tawau with different modus operandi,” he said.
Enforcement data shows that between January 1 last year and March 31 this year, authorities foiled 753 smuggling attempts and arrested 1,460 individuals, with total seizures valued at RM2.81 billion.
The government has reaffirmed its commitment to intensifying enforcement measures to curb subsidy leakages and ensure that fuel subsidies are channelled exclusively to those eligible. - April 12, 2026
