Cooking Oil Subsidy is Unjustified

The media has highlighted the growing issue of smuggling and diversion of subsidized cooking oil to neighboring countries, a problem that is increasingly affecting Malaysians, particularly the poor and B40 groups who are struggling to obtain subsidized cooking oil.

According to a recent report, 60 million packets of subsidized cooking oil are being sent to neighboring countries every month. This represents a significant leakage. If the supply was distributed equitably, every Malaysian would be able to  purchase two packets of subsidized cooking oil per month. However, this is not the case, because the available supply fails to meet the needs of the intended recipients.

A survey conducted by the Consumers’ Association of   Penang (CAP) found that subsidized cooking oil was not available in the market for those who need it most. To address this, CAP suggests using technology platforms such as MyKad, MySejahtera, or e-wallets to ensure that only eligible individuals can purchase subsidized cooking oil.

Alternatively, CAP recommends introducing special identification cards for this purpose. Moreover, there is a call to reassess and strengthen enforcement measures to curb the smuggling of cooking oil to neighboring countries.

More decisive and effective action is needed to ensure that subsidized oil reaches those who truly need it. The authorities are urged to take a more focused approach in tackling the issue of smuggling, which has detrimental effects on the Malaysian population.

Mohideen Abdul Kader
President
Consumers Association of Penang (CAP)

Press Statement, 29 November 2024