SANDAKAN: A local company responsible for repackaging subsidized 1kg cooking oil has been penalised under the Supply Control Act 1961 (Act 122) for violating directives issued by Malaysia’s Supply Controller regarding the distribution of subsidized goods.
On April 25, enforcement officers from the Ministry of Domestic Trade and Cost of Living (KPDN) Sandakan branch conducted an audit of subsidized 1kg cooking oil distribution at repackaging facilities and licensed retail premises, including supermarkets, across the district. A cross-check revealed that only 21 metric tons of the allocated 34 metric tons of subsidized oil had been delivered to a designated business address.
Further inspection uncovered that the remaining 13 metric tons were diverted to unauthorized locations without prior approval from the Supply Controller, breaching the terms outlined in the official distribution order.
KPDN enforcement officers seized critical documents, including invoices, sales receipts, stock records, and the company’s Controlled Goods License (CSA), for further investigation, enforcement chief Azdy Zukkry John said on Tuesday.
The Supply Controller’s distribution mandate, implemented in August 2024, requires repackaging companies to deliver subsidized 1kg cooking oil exclusively to pre-approved locations. This policy aims to curb leakage and misuse of controlled goods. Prior to 2024, re-packagers had unrestricted distribution rights, he added.
KPDN Sandakan emphasized its commitment to stringent monitoring of subsidized oil distribution, urging all supply chain stakeholders to act responsibly.
“Subsidies must reach their intended beneficiaries. We will not tolerate non-compliance,” Azdy stated. – James Leong
