PETALING JAYA: A consumer group has urged the government to introduce a mechanism for targeted cooking oil subsidies to curb leakage and ensure that the subsidies are only channelled towards the target groups.

The Federation of Malaysian Consumers Associations (Fomca) said reports of subsidy leakages through the misappropriation of cooking oil packets were becoming more common, and that immediate action was needed.

Fomca treasurer-general Nur Asyikin Aminuddin said the government must act quickly to prevent losing millions of ringgit due to subsidies that do not reach their target groups.

“The issue isn’t just about foreigners – even traders are purchasing subsidised cooking oil packets because the manner in which the cooking oil can be purchased is easily manipulated.

“On the other hand, those who are truly in need aren’t able to purchase the subsidised cooking oil,” she told FMT.

Nur Asyikin added that Putrajaya could use its new basic expenditure of decent living measurement as a foundation for the targeted cooking oil subsidy mechanism.

Last week, domestic trade and cost of living ministry officials in Perak raided a shop in Taiping which was found to be selling the 1kg cooking oil packets to “certain customers” only.

Officials in Pahang also seized 112kg in subsidised cooking oil after raiding a restaurant which allegedly purchased the subsidised packets for business.

There have also been reports of the cooking oil, sold in 1kg polybags, being found for sale at shops in Thailand.

In 2023, Umno vice-president and Titiwangsa MP Johari Ghani suggested that the government replace the cooking oil subsidies with direct cash aid for eligible households to curb leakage.

Johari, who is now the plantation and commodities minister, said there had been cases of wholesalers purchasing the polybags at the subsidised price of RM2.50, only to sell them to micro enterprises at a higher price.