Latest news with #CookingOilStabilisationScheme
The Star
24-07-2025
- Business
- The Star
New app to tackle cooking oil subsidy abuse
KUALA LUMPUR: The Mobile eCOSS (Cooking Oil Stabilisation Scheme) Application will be able to provide data on the demand of cooking oil to curb smuggling and subsidy leakages, says Datuk Seri Armizan Ali ( pic ). The Domestic Trade and Cost of Living Ministry said the data will also help in deciding government policy in ensuring the delivery of cooking oil subsidy. 'We didn't have the exact updated data on the usage of cooking oil, but with eCOSS, we will have the purchase data. 'From here, than we can draft the way forward policy to target cooking oil subsidies to those who are eligible,' he said when wrapping up his ministerial replies when debating the Auditor-General's Report in Dewan Rakyat, a first in Parliament. Armizan also said that his ministry has initiated a pilot project on the app in Johor in May. He added that the mobile app would also allow the government to monitor sales of cooking oil to foreigners. 'The application will be rolled out gradually, ensuring system stability before full implementation. 'Through the Mobile eCOSS App, retail purchase data will be recorded, allowing the ministry to monitor retailer sales records and consumer purchase data, including identities based on National Registration Department records. 'This strategy enables monitoring and enforcement against sales and purchases exceeding limits or to foreigners,' he added. The latest A-G report found that the current policy on subsidised cooking oil is not comprehensive and has allowed non-targeted groups, including non-citizens, to benefit from the subsidy. The department said the existing framework under COSS lacked clear eligibility requirements for the purchase of subsidised cooking oil, with the Auditor-General recommending that the ministry improve its COSS guidelines to tackle leakages.
The Star
11-07-2025
- Business
- The Star
Cooking oil mix-up of hot profits and holy fry-ups
EVERY Malaysian recognises the RM2.50 polybag of cooking oil (palm olein) – a kitchen essential subsidised under the Cooking Oil Stabilisation Scheme (Coss) to support B40 households. But behind this golden staple lies a simmering problem of misuse, leakages and profiteering that risks undermining the subsidy's purpose. Let's talk numbers. Each month, 60 million subsidised 1kg oil packets enter the market or 720,000 tonnes per year. With a population of 36 million, that's nearly two packets (1.7kg/month) per Malaysian – alarmingly high. In 2024 alone, this programme cost taxpayers RM1.945bil. Uniquely, much of this cost is for B40 in the nation and levied from the palm oil industry itself via a windfall profit levy (WPL) on oil palm growers. In principle, it's a noble arrangement. In practice, there are cracks. The border problem One big crack is at our borders. The Star on April 24, 2025, reported that authorities in Kelantan busted a syndicate trying to smuggle 7,000kg of subsidised cooking oil into a neighbouring country. And that wasn't an isolated incident. Time and again, middlemen have been caught buying up large quantities of these RM2.50 polybags locally, then quietly ferrying them across borders where the same oil can fetch higher prices. In economic terms, it's textbook arbitrage: when a commodity is cheaper on this side of the border and pricier just miles away. Kudos to our enforcement agencies for their vigilance and successful busts of these smugglers. But the system remains vulnerable to leakage. Smuggling might not be rampant in every state, but even small-scale syphoning adds up fast – and it hurts the very group the subsidy is meant to help. From frying pan to fake prayer bottle If smuggling is the external leak, repackaging and resale is the internal bleed. The Star on June 26, 2025 reported that the Penang Hindu Association raised the alarm that subsidised cooking oil was being rebottled and sold as 'prayer oil'. And we're not talking a subtle price hike, either. One particular brand was being peddled at RM8.20 per litre as 'holy' lamp oil – an eye-popping 228% holy markup. How do they get away with this? By literally 'disguising' the cooking oil. Reports suggest some unscrupulous suppliers commingle or mix the subsidised cooking oil with paraffin-based lamp oil, add dyes and perfumes, and sell it as doppelgänger 100% prayer oil. Let's call it what it is: at best, a waste of taxpayer-funded aid repackaged for profit under a spiritual guise. Using oil in rituals is one thing – flipping subsidised oil for cash with a holy label is another. So, what can we do? For starters, push for clearer packaging and labelling, and spread the word – before someone accidentally baptises their chicken curry in altar oil. And we need policymakers to drive for smarter subsidy systems. Red palm oil caught in the crossfire Amid this oily confusion, red palm oil (RPO) has become an innocent casualty. RPO is a vibrant, nutrient-rich edible oil pressed from palm fruit – in fact, it contains 15 times more pro-vitamin A carotenoids than carrots and 300 times more than tomatoes. It's richly packed with antioxidants. It's a genuinely healthy cooking oil. Yet, thanks to product differentiation, RPO can get mistaken for non-edible prayer oil (and vice versa). The bottles look similar, the oil inside looks similar, and in many small shops they're even shelved side by side. The result? Reports of unsuspecting customers sometimes grabbing the wrong bottle – with cringe-worthy outcomes. Imagine someone trying to cook dinner with paraffin lamp oil, or someone pouring nutritious RPO into their temple lamp. These mix-ups do happen, and they are dangerous not to mention bad public relation for palm oil. A few simple fixes could prevent oily mix-ups: use distinct bottles for non-edible oils – bright caps, odd shapes, anything that says 'not for cooking'. Print bold, clear warnings in multiple languages and store edible and non-edible oils separately. These small steps could spare us more tales of curries in lamp oil. Government digital intervention In response to the growing concerns especially over subsidised oil leakages, the government is eyeing a high-technology solution. The Star on June 28, 2025, announced that the authorities will start to roll out a mobile application – eCoss – to monitor the sale of subsidised cooking oil. How would this work? Essentially, retailers would be required to log buyers' details into the app every time someone purchases the subsidised oil. Buyers must download the eCoss application and scan a QR code when purchasing subsidised oil. This data would feed into the Domestic Trade Ministry's system, allowing them to track who is buying subsidised oil, how often and in what quantity. It's a welcome move into the digital age. With proper implementation, such tools can enhance transparency and enforcement. However, the success of this app will hinge on a few things: retailer cooperation, system reliability (let's hope it doesn't crash come festive grocery rush) and public trust in data privacy. Case for shared responsibility and reform Strong enforcement is key – random audits, supply chain tracking and real penalties for tampering with subsidised goods. But public education matters too. Consumers need to know the difference between red palm oil, prayer oil and subsidised cooking oil. Ministries, non-governmental organisations, religious bodies and industry groups can all help through posters, social media and community workshops. Keeping the system honest takes everyone. At its heart, the subsidised cooking oil saga isn't just about cooking, religion or economics – it's about safeguarding public trust. The government rolled out this subsidy to benefit the rakyat and it's on all of us to make sure that trust isn't betrayed. Policymakers must design smarter, leak-proof subsidy systems. Enforcement agencies must uphold the rules without fear or favour. Industry players should distribute and label products responsibly. And we consumers should stay alert – report abuses, avoid selfish hoarding and yes, double-check the labels on that oil bottle in our hand. The government must also re-evaluate whether the responsibility of sustaining the Coss should fall solely on the palm oil sector via the WPL – originally intended for this purpose, though currently channelled into consolidated tax revenue. If the subsidy is to continue, it's only fair that all sectors benefiting from windfall profits share in the responsibility of supporting the rakyat. A declining and unsustainable oil palm sector will affect Coss in future. While plugging loopholes and going digital are great, we should also ask a bigger question: is there a smarter way to deliver this subsidy altogether? Many policy experts have long suggested targeted assistance – basically, give the subsidy to people in cash rather than to the product. In other words, directly support B40 households and let them buy cooking oil at market price. This way, the benefit is in the recipient's wallet, not in the oil packet. No more arbitrage opportunity, no more black market. We must do more to make sure subsidised cooking oil feeds B40 families and not fuels fraud. The only thing worse than bland food is knowing your stir-fry lit a shrine while someone else pocketed your tax ringgit. Joseph Tek Choon Yee is the past-president of the Malaysian Estate Owners Association and former chief executive of the Malaysian Palm Oil Association. The views expressed here are the writer's own.
