Govt must approve additional quota of subsidised cooking oil: Domestic Trade Ministry

PUTRAJAYA – The government has to approve an additional quota of subsidised cooking oil for operational purposes, as well as to ensure sufficient supply in the market, according to the Domestic Trade and Cost of Living Ministry.

The ministry, in a statement today, said it is also because some packaging companies are unable to use the allocated quota in full due to several situations, like the company not operating, factory closure, machine damage or quota suspended due to suspected wrongdoing.

“Quotas that are not used will be rationalised to be distributed to other operators to cover the shortfall. However, this additional quota does not cause expenses to exceed the stipulated limit,” it said.

The statement was issued in response to two local media reports over allegations that the ministry’s officials spent more than RM9 million to provide additional quota for subsidised cooking oil subsidy last year, in addition to allegations that there were quota cuts or quota rationalisation and quota approval given to two companies with the same registered address.

According to the ministry, the reports were not true since the expenditure for cooking oil subsidy is between 88% and 99% of the total quota allocation of 60,000 metric tonnes per month.

The ministry said although at the production level, the quota reaches 60,000 metric tons per month, there may be a supply situation at the retail level that is insufficient for the people’s use, among other things, due to the confiscation of cooking oil based on cases of malpractices, and its use in cheap sale programmes by the government.

“This shortage is evidenced by the increase in complaints from consumers that there is a shortage of packet cooking oil in the market,” said the ministry.

Regarding the quota rationalisation implemented by the ministry, it said it is a normal process, implemented in 2018 and 2021, taking into account current issues such as insufficient supply in the market and ensuring efficient distribution.

For issues related to the approval of quotas given to two companies with the same registered address, a check has been made with the Malaysian Companies Commission, and it was found that the two companies are two different companies with different owners (shareholders), said the ministry. – Bernama, April 15, 2023