Ministry of Internal Trade proposes to set two prices of cooking oil for domestic and export use | Malaysia


Packets of cooking oil are pictured at a market in Petaling Jaya on March 2, 2021. – Image by Ahmad Zamzahuri

KUALA LUMPUR, March 15 – The Ministry of Domestic Trade and Consumer Affairs (KPDNHEP) is exploring alternatives including setting two prices for cooking oil, one for the domestic market and another for export.

Its minister, Datuk Seri Alexander Nanta Linggi, said the move was aimed at ensuring that the distribution of cooking oil subsidies reaches the target group.

“We are negotiating to find alternatives to the existing system, including considering (setting) two prices (for cooking oil)…one price for domestic use and the other for export which can follow the prices of the market.

“This is a proposal for us to solve the problem of overspending on subsidies (cooking oil),” he said when closing the debate on the motion of thanks for the royal speech of KPDNHEP. at Dewan Rakyat today.

He said this while answering a question from Isnaraissah Munirah Majilis (MP Warisan-Kota Belud) regarding the cooking oil subsidy.

Earlier, Nanta said the government has added a RM1.9 billion cooking oil subsidy to the existing allocation to ensure there is no disruption in supply.

He said that, in parallel, a study on optimization of grants under the KPDNHEP was also conducted to ensure that the grants under his supervision reached the target group.

Regarding the imposition of a limit on the purchase of subsidized cooking oil, he said that it was implemented to ensure that the sale of subsidized cooking oil was controlled from reaching only those eligible to purchase.

According to him, up to February 28, a total of 6,500 premises have been inspected, 25 investigation documents have been opened and action taken against 20 companies, including the suspension of cooking oil program quotas and the suspension of the trading license.

“KPDNHEP through its Law Enforcement Division has implemented measures such as premises inspection, supply chain audit, manufacturer and wholesaler intelligence , setting purchase limits of three packages, as well as strategic cooperation with other enforcement agencies,” he said. — Bernama


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