Illegal fertiliser repackaging op raking in RM400,000 monthly profits busted in Melaka

The Star

2 days ago

MELAKA: A company raking in monthly profits of up to RM400,000 has been exposed for running an illegal fertiliser repackaging operation from three rented bungalows in an upscale residential neighbourhood in Ayer Keroh here.
The illicit activity came to light following a raid by the Melaka Domestic Trade and Cost of Living Ministry (KPDN) under Ops Samar 5.0.
Melaka KPDN director Dr Mohd Hazimin Jamaludin said the operation was uncovered after a week of public tip-offs and surveillance.
"The bungalows were operating like small-scale factories, repackaging fertiliser purchased from other sources into smaller packets.
"Two of the homes were also used as business offices and TikTok livestream studios for online sales,' he said on Tuesday (July 15).
Dr Mohd Hazimin said the company was found to have violated two major regulations, the Supply Control Act 1961 and the Weights and Measures Act 1972.
'They've been operating for about a year without any official approval from KPDN's Supply Controller to deal in controlled items like fertiliser.
"The company also lacked local council approval, retail and wholesale licences,' he said.
Dr Mohd Hazimin said that under the Weights and Measures Act, the company was using uncertified weighing tools, raising concerns about inaccurate measurements for products sold through TikTok.
He said his team discovered 4,165kg of fertiliser worth RM6,789 ready for repackaging and distribution nationwide during the raid.
"The business model allowed the company to generate estimated monthly profits of RM400,000 with the help of 15 employees.
Dr Mohd Hazimin noted that the company's decision to operate in a high-end residential area, rather than an industrial zone, was likely a strategic move to avoid detection.
'This is the first case of its kind in the state and possibly in the country.
"It was also difficult for our enforcement team to even enter the area due to tight security to these homes are occupied by high-profile and elite individuals,' he added.