THE Government has intensified its national crackdown on fuel and subsidised goods smuggling, with the government establishing a dedicated task force in Sabah and Labuan under the expanded and integrated Ops Tiris 4.0, as global energy market disruptions continue to drive subsidy leakage risks.
Deputy Prime Minister II Datuk Seri Fadillah Yusof said the move comes amid an ongoing West Asia conflict that has triggered a global energy crisis, pushing up oil prices and disrupting supply chains following restrictions in the Strait of Hormuz.
Fadillah, who also serves Minister of Energy Transition and Water Transformation, said the situation has had direct repercussions on Malaysia, including rising subsidy costs, while reinforcing the need to ensure subsidies reach only targeted groups and essential goods remain accessible to the public.
“In facing these challenges, including the significantly rising implications of fuel subsidy costs, the Government remains committed to continuing the fuel subsidy programme by ensuring it reaches the intended target groups, while also guaranteeing that the people continue to have access to essential goods.
This effort will be strengthened by curbing smuggling activities and the misuse of controlled goods, particularly diesel and petrol,” he said.
The government said the widening price gap between Malaysia’s subsidised fuel and neighbouring countries such as Indonesia and the Philippines has further increased the risk of cross-border smuggling, particularly in Sabah and Sarawak due to their extensive maritime and land borders.
Following decisions made by the National Coordination Committee on Enforcement Agencies to Combat Leakage and Smuggling (JTPAP) and the Cabinet, two integrated task forces have been established under Ops Tiris 4.0, covering Sarawak as well as Sabah and the Federal Territory of Labuan.
Fadillah said the Sabah and Labuan task force will strengthen coordinated enforcement efforts among federal and state agencies to address high leakage risks in border and coastal areas.
He chaired the inaugural meeting for the Sabah and Labuan task force in Kota Kinabalu, which was attended by Sabah state agencies, the Federal Territories Department, and federal enforcement bodies already part of the central coordination mechanism.
Fadillah said enforcement under Ops Tiris 4.0 has already shown significant results at the national level.
From 16 March to 19 April 2026, a total of 18,261 inspections were carried out nationwide, resulting in 320 recorded offences.
Of these, 138 cases involved diesel, 77 petrol, 41 liquefied petroleum gas (LPG), 35 cooking oil, 22 sugar and seven wheat flour seizures. A total of 85 individuals were arrested to assist investigations.
“The results reflect a firm government stance against those attempting to profit illegally from public subsidies,” he said.
The government said enforcement success was driven by inter-agency cooperation, with 185 cases handled directly by the Domestic Trade and Cost of Living Ministry’s enforcement division, while 135 cases were contributed by other enforcement bodies.
The General Operations Force accounted for 74 cases, the Marine Police 36 cases, and the Royal Malaysia Police 19 cases. Other contributing agencies included the Malaysian Maritime Enforcement Agency, Immigration Department, Royal Malaysian Customs Department, Road Transport Department, Eastern Sabah Security Command and local authorities.
Sabah recorded the highest number of cases nationwide with 82, while Labuan recorded two cases.
Enforcement actions in both territories resulted in the seizure of 102,144 litres of diesel and 23,907 litres of petrol, alongside 9,605 kilograms of cooking oil, 3,726 kilograms of LPG and 198 kilograms of sugar.
Fadillah said the newly formed task force will be led by the Sabah Federal Secretary together with the Sabah State Secretary, with the Domestic Trade and Cost of Living Ministry in Sabah serving as secretariat.
He said the task force will focus on three key areas, including tailored enforcement planning for Sabah and Labuan, addressing smuggling tactics in border and maritime zones, and improving coordination among federal and state agencies such as port authorities and relevant regulatory bodies.
He stressed that the government will not tolerate any form of subsidy abuse or smuggling activity.
“I want to emphasise that the government will not compromise. Anyone attempting to profit illegally through smuggling and leakage will face firm action under the law,” he said.
He also called on residents in Sabah and Labuan to support enforcement efforts under the KITA GEMPUR initiative, urging the public to act as the “eyes and ears” of authorities.
“Close cooperation between the Federal Government and the State of Sabah as well as the Federal Territory of Labuan is the key to ensuring that our economic sovereignty is safeguarded for the well-being of future generations,” he added. - April 20, 2026
