Sandakan company probed for diverting subsidised cooking oil to unauthorised retailers
A view inside the repacking facility inspected by KPDN Sandakan officers.
KOTA KINABALU: A cooking oil repacking company is under investigation for allegedly distributing subsidised cooking oil in 1kg packets to unauthorised retailers.
Domestic Trade and Cost of Living Ministry branch in Sandakan said a compliance audit last week found that 13-tonne, around 38% of the company's total allocation of 34-tonne cooking oil, had been delivered to unapproved premises.
Its district enforcement chief Azdy Zukkry John said action had been taken against the Sandakan-based firm under the Control of Supplies Act 1961.
In a statement on Tuesday, he said documents including invoices, sales receipts, stock records and controlled goods licences were seized from the company.
According to the statement, since August 2024, repacking companies have been required to follow strict delivery guidelines in an effort to prevent leakage and misuse of subsidised goods.
The ministry reminded all parties involved in the distribution of subsidised cooking oil to comply with government directives to ensure this aid reaches its intended recipients.
Under the Control of Supplies Act, individuals found guilty of offences may face fines of up to RM1mil, imprisonment for up to three years, or both. Companies can be fined up to RM2mil, with higher penalties for repeat offences.
Consumers are encouraged to report any suspected irregularities in the supply chain via the 1-800-886-800 hotline, whatsapp at 019-848 8000, e-aduan portal (http://eaduan.kpdn.gov.my), email (eaduan@kpdn.gov.my), the Ez Adu KPDN app or the enforcement command centre at 03-8882 6088/6245.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Star
an hour ago
- The Star
Dr Wee: Do your homework first
KUALA LUMPUR: Amending the Control of Supplies (Amendment) Act 2021 (Act 122) was never about regulating the use of subsidised liquefied petroleum gas (LPG), said Datuk Seri Dr Wee Ka Siong (pic). The MCA president, who referred to parliamentary hansards in 2021, said the amendments only gave wider enforcement powers to Domestic Trade and Cost of Living Ministry officers. Dr Wee also said the amendments were debated by numerous MPs from both sides of the political divide before it was passed in Parliament in March 2022. 'Not a single MP mentioned the permit for three subsidised LPG gas cylinders or the use of commercial LPG for restaurants,' said Dr Wee in a video posted on Facebook on Sunday. Dr Wee said when then Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi was giving a Parliament reply in March 2022, he never mentioned the regulation on subsidised gas cylinders. 'Datuk Armizan Mohd Ali, you were not at the Dewan Rakyat then, but you could have checked the Hansard. Do your homework before accusing me,' Dr Wee said. Armizan, the current Domestic Trade and Cost of Living Minister, had claimed that the law behind the enforcement, where eateries are required to use 14kg commercial LPG cylinders, was passed when Dr Wee was in the Cabinet in 2021. 'Maybe the regulation on the use of cooking gas in a subsidised gas cylinder not exceeding 42kg was an internal ministerial order, or an instruction from the administration,' added Dr Wee. Dr Wee said the law behind the enforcement where eateries are required to use 14kg commercial liquefied petroleum gas (LPG) was introduced since the 2000s, but it was never enforced until the first Pakatan Harapan government in 2019. 'In early 2019, the domestic trade and consumer affairs minister issued orders making it compulsory for restaurants, coffee shops and hawkers to use commercial LPG. 'But Chong Chieng Jen, who was the deputy minister, announced the postponement of that policy following public concerns over price hikes on food. He said food and beverages (F&B) operators are allowed to use subsidised LPG,' said Dr Wee. 'And now, they are trying to enforce it again under the Madani government in 2025.' He also demanded an apology from Armizan. 'You should apologise to me for your carelessness. As the spokesman of the people, I should have not been sacrificed,' he said. Meanwhile, Armizan shot back at Dr Wee, saying he was talking about the Control of Supplies (Amendment) Regulations 2021 during a press conference on June 5 and not the Control of Supplies (Amendment) Act 2021 which the MCA president was referring to. 'It is surely impossible to find the legal provisions that I was referring to because as I mentioned A, he was referring to Z,' said Armizan in a statement on Facebook yesterday. Previously, Armizan had said Ops Gasak is being carried out under three existing laws – the Control of Supplies Act 1961, the Price Control and Anti-Profiteering Act 2011 and the Control of Supplies (Amendment) Regulations 2021. Armizan had also said that the regulation was enforced during the previous administration in 2021, of which Dr Wee had served as a Cabinet Minister. Yesterday, Dr Wee had said though he served as a Cabinet Minister in 2021, he has never been involved in approving such regulations. On Thursday, Armizan had said that small and micro-scale F&B operators will be exempted from enforcement under the ongoing Ops Gasak Armizan said the Cabinet agreed to review the regulations on the use of subsidised LPG cylinders by such traders, after recommendations submitted by the Domestic Trade and Cost of Living Ministry. Ops Gasak, which began on May 1 and will run until Oct 31, is meant to curb illegal activities such as decanting (transferring gas from subsidised LPG cylinders to non-subsidised ones), smuggling and the misuse of subsidised LPG by medium and large-scale industrial sectors. Dr Wee had said Ops Gasak should have focused on large-scale operations and at the borders, and not on petty traders and hawkers. The crux of the issue, he said, is the smuggling activities at the borders and abuse of targeted subsidies. The Petaling Jaya Coffeeshop Association has also said a switch to commercial LPG by hawkers could lead to consumers paying higher food prices.
New Straits Times
2 hours ago
- New Straits Times
PR frenzy, poor fundamentals: Disappointing IPO darlings
KUALA LUMPUR: Over the past 18 months, Bursa Malaysia witnessed a surge in new listings, many accompanied by high expectations and polished narratives. Behind the scenes, public relations consultants and investment advisors played pivotal roles organising media briefings, analyst meetings and investor briefings to generate interest and drive early demand. However, as the dust settles, some of these companies have fallen short of their promises, with share prices slipping below IPO levels despite the initial fanfare. Here are three companies that illustrate the disconnect between pre-listing optimism and post-listing realities: Alpha IVF Group Bhd •Recent Price: 28 sen (as of June 6) Alpha IVF, a fertility services provider, made its debut on Bursa Malaysia with a compelling narrative centred around expanding fertility awareness and clinical capabilities. The company positioned itself as a beacon of hope for couples struggling to conceive, backed by cutting-edge technologies and a regional footprint. Public relations consultants heavily promoted the IPO, emphasising emotional branding - stories of successful IVF journeys, warm imagery of smiling babies - and reassuring interviews with founders and doctors. Investor briefings were held, reinforcing the company's regional growth story. The IPO was oversubscribed, and the stock saw a slight uptick upon listing. However, the honeymoon phase was short-lived. Analysts began to question the valuation multiples, especially given the thin margins and rising operational costs of running fertility centres. The company's expansion plans, initially perceived as bold, began to look like expensive bets in a niche and price-sensitive market. Despite the promotional efforts, Alpha IVF's share price gradually declined, slipping below its IPO price and staying there. Notably, the IPO price of RM0.32 corresponded to a price-to-earnings (P/E) ratio of 21.92x, based on a net profit of RM54.79 million and earnings per share (EPS) of 1.46 sen for the financial year ended May 31, 2023. This valuation was higher than the industry's average P/E ratio, raising concerns about the company's valuation amidst the optimism. CPE Technology Bhd •IPO Price: RM1.07 •Recent Price: 71 sen (as of June 6) CPE's entry into Bursa was anything but quiet. As a precision engineering company with clients in the semiconductor, life sciences, and industrial automation sectors, it was touted as a proxy for Malaysia's high-tech ambitions. The IPO narrative leaned heavily on its global supply chain connections, particularly its exports to the US, Europe and China. In the weeks leading up to its listing, CPE's name was everywhere. PR consultants rolled out a carefully staged campaign: glossy investor kits were circulated, media interviews were arranged with top executives, and photos of high-tech assembly lines flooded financial pages. There were even organised tours for analysts and key fund managers to CPE's Johor-based facilities, complete with safety helmets, walkthroughs, and sales pitch presentations over coffee. The message was clear: CPE was not just another component maker - it was a growth story in a fast-evolving tech ecosystem. Investors initially responded with enthusiasm. The IPO was oversubscribed, and there was buzz about CPE being well-positioned to ride the next wave of industrial demand. But reality, as it often does, proved more complicated. Just a few quarters in, cracks began to appear. Order flows from major clients slowed as the global tech sector cooled. Margins came under pressure, not least due to rising raw material costs and a strong US dollar. Earnings missed early projections, and suddenly, the glow around CPE started to fade. The same analysts who had attended the factory tours began to revise their outlooks. Despite the polished communications campaign and well-managed listing strategy, CPE's share price drifted below its IPO level. The company had a credible story - but not enough momentum to keep the market convinced. DXN Holdings Bhd •IPO Price: 70 sen •Recent Price: 50 sen (as of June 6) DXN's return to the stock market after years in private hands was framed as a rebirth. PR consultants spoke of a "new chapter" for the direct-selling giant, with aggressive outreach to media and investor groups. Yet, cracks began to appear when earnings underwhelmed and overseas sales growth slowed. Despite the well-orchestrated relisting campaign, investors began to question whether DXN's golden era was behind it. Conclusion: Hype Fades, Fundamentals Remain Industry observers said new IPOs often arrive on a wave of excitement, backed by slick presentations, aggressive PR campaigns, and promises of untapped potential. But investors must learn to separate story from substance. Just because a stock is trending or being heavily marketed doesn't mean it's a good buy. PR blitzes can create temporary buzz, but they can't sustain valuations if earnings disappoint and growth stalls. The observers said the message is clear: don't get carried away by headlines or hype, and stick to fundamentals, scrutinise the financials and invest with discipline.
The Star
2 hours ago
- The Star
Ipoh landmark to become community hub with RM15mil facelift
An artist's impression for the winning design presented by Penang-based architectural firm BEu Tan Architect for a revitalised Ipoh Central Market. THE Ipoh Central Market at Jalan Dato Onn Jaafar, Ipoh, is set to be revitalised with a 'market in a park' concept. The concept was selected as the winning entry at a design competition held following the Housing and Local Government Ministry's plan to upgrade markets in the country. The winner Tan Bee Eu is the founder of Penang-based architectural firm BEu Tan Architect (Beta). She said the market would have more public spaces and be surrounded by greenery. 'We conducted multiple site visits to understand the problems and scenario at the existing market premises. 'Our goal was not only to address the problems faced by the ageing market but to also reimagine it as a vibrant new landmark for the city,' she told reporters at an executive talk event organised by Ipoh City Council at the Ipoh Convention Centre in Greentown. Beta was announced the winner of the competition at the event held in conjunction with the city's 37th anniversary celebration. Housing and Local Government Minister Nga Kor Ming had earlier this year said the Ipoh market would be given a major upgrade. About RM15mil was allocated to transform it into a landmark resembling the iconic Kuala Lumpur Central Market. The project was the ministry's initiative to revitalise heritage markets of over 50 years old. Tan said the Ipoh Central Market was strategically located but 'looked tired'. 'This revitalisation is timely and offers an opportunity to transform it into something iconic,' she said. 'Our project will transform the marketplace into a space for everyone, similar to a 'market in a park' concept. 'We've included plenty of public areas, such as playground for children and meeting spots for the elderly, to make it more community-focused.' Tan said the market's existing courtyard would be turned into a public square with an amphitheatre, spaces for bazaars and long-running community activities. 'It's similar to how atriums in shopping malls function as gathering points. 'The courtyard will also be surrounded by greenery and lots of trees,' she added. Ipoh mayor Zamakhshari Hanipah said upgrading works for the market would start by this year. The new mayor thanked his predecessor Datuk Rumaizi Baharin for laying a strong foundation and positioning Ipoh as a symbol of success. 'As the new mayor, I intend to return to basics by reevaluating the core responsibilities and role of a local authority,' he added. Zamakhshari said the five areas of focus are cleanliness, waste management, roads, street lighting and drainage, as the main issues often raised by the residents. 'We have been receiving various complaints regarding these services. 'As a local authority, we are entrusted with collecting assessment taxes and returning that value to the people through quality services. 'The people of Ipoh are our stakeholders and it is our duty to serve them. 'That is my vision throughout my term as the mayor of Ipoh.'
