Ban on sale of 1kg polybags through price stabilisation scheme that digitally tracks transactions ensures assistance reaches intended beneficiaries: Minister
PETALING JAYA: Foreign nationals will no longer be allowed to purchase subsidised packet cooking oil priced at RM2.50 from March 1, said Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali.
Speaking in the Dewan Rakyat yesterday, he said before it is enforced, regulations would be drafted under the Control of Supplies Regulations pursuant to Section 6 of the Control of Supplies Act 1961 and referred to the Attorney-General’s Chambers.
“The move is aimed at strengthening control over subsidised cooking oil and ensuring that the assistance reaches its intended beneficiaries.
“There have been numerous calls to prohibit purchases by foreigners previously. However, retailers raised practical concerns, particularly on the mechanisms for implementing the ban, including monitoring and enforcement methods.”
Armizan said to enforce the ban on subsidised cooking oil sales to non-citizens, a Cooking Oil Price Stabilisation Scheme would digitally track transactions across the entire distribution chain.
“By linking purchases to national identity card details, the system allows retailers and enforcement agencies to implement the ban effectively.”
Armizan said the system monitors purchases and transactions, helping to prevent the diversion and smuggling of subsidised packet cooking oil, which has been a long-standing issue.
He said the ministry acknowledged concerns that the system’s mobile app may affect senior citizens, low-income groups and rural residents without internet access.
“To address this, we rolled out the app gradually from May 2025, starting in Putrajaya, followed by Rahmah Madani outlets in Johor and selected outlets in other states.
“During the pilot phase, manual purchases are still allowed, and retailers will provide on-site assistance for those without mobile phones or internet access.”
He added that the system would also be integrated with the MyKasih platform, allowing purchases using the national identity card, similar to the Sara programme.
“The QR code on the updated MyKad can also be used to verify purchases of subsidised cooking oil.”
He said the cost of implementing the system is substantial, reaching nearly RM1.9 billion.
He added that there was no data for many years on who was actually buying subsidised packet cooking oil.
Armizan said the app made this data available via the pilot project which began on May 1 last year.
He said it recorded that 20,361,432 packets had been bought by Malaysian citizens.
“We will continue to improve the management of the system, whether through the mobile app or other options, to ensure digital recording at every stage of the supply chain and sales transactions.
“Recording of end-consumer purchases at retail outlets aims to ensure that the subsidy benefits the people while curbing leakages of packet cooking oil subsidies caused by misappropriation and smuggling, which have long been a problem.”
Under the subsidised cooking oil packet programme, a monthly allocation of 60,000 metric tonnes is provided mainly for Malaysian households, particularly those in the B40 income group.
The subsidy applies only to 1kg polybag packets to ensure that they are used for household consumption and to curb misuse for industrial purposes or smuggling, a policy that has been maintained since 2007.
Prior to the ban on foreign nationals, consumers were required to scan QR codes at retail outlets to verify eligibility and restrict purchases to Malaysians.
