Datuk Seri Alexander Nanta Linggi admitted that the crime is rampant in border states of neighboring countries including Kedah, Kelantan, Sabah and Sarawak due to the high price of the commodity in the global market. — photo by Bernama
Wednesday 06 July 2022 18:26 MYT
KLANG, July 6 – The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) will intensify law enforcement to combat the smuggling and diversion of subsidized cooking oil to neighboring countries.
His Minister Datuk Seri Alexander Nanta Linggi admitted that the crime is rampant in border states of neighboring countries including Kedah, Kelantan, Sabah and Sarawak due to the high price of the commodity on the world market.
“From January to yesterday, authorities seized RM1.5 million across the four states, involving 61 cases,” he told a press conference after visiting the Carsome Certified Lab here today. .
According to him, oil packaged at RM2.50 per kg in Malaysia is sold at a much higher price in countries like Thailand (RM12.60 per kg); Indonesia (RM14.27 per kg); Philippines (RM11.23 per kg) and Singapore (RM12.33 per kg).
“We admit that smuggling is not something new, but in the past it was not significant because the price difference between subsidized cooking oil and non-subsidized oil was small due to the low market price of crude palm oil (CPO).
“However, the price of CPO has increased to between RM4,000 and 5,000 per ton, thus fueling more smuggling incidents,” he said.
Apart from this, he said law enforcement cooperation in land and sea border areas between police, military and customs is needed to thwart attempts to smuggle subsidized goods.
Regarding the allegedly insufficient supply of packaged cooking oil in the domestic market, Nanta said the current allocation of 60,000 tons should meet domestic demand, as data shows that Malaysians only need 55 000 tons.
“The only problem we face now is in terms of distribution, apart from leaks, smuggling and diversion of cooking oil overseas,” he said, adding that cooking oil subsidized cooking intended for domestic use had also been detected to be channeled to traders for use in restaurants.
He said the ministry would continue to monitor and prosecute those involved in the abuse of subsidized cooking oil. — Bernama