Latest news with #Act122
The Star
4 days ago
- Business
- The Star
Syndicates greasing the system
Spot check: (Left) Fuziah inspecting a packet of cooking oil during her visit to a repackaging factory at Kempas, Johor Baru. — THOMAS YONG/The Star PETALING JAYA: A web of syndicates has been exposed for misappropriating subsidised cooking oil, repackaging it and selling it illegally as used or industrial-grade oil, reaping hefty profits by exploiting public subsidies. Deputy Domestic Trade and Cost of Living Minister Dr Fuziah Salleh said the groups had been buying one-kilogramme packets of subsidised cooking oil at RM2.50 each, then transferring the contents into drums and mixing it with low-grade or used oil. ALSO READ: Subsidised cooking oil misused for profit The adulterated product was then sold for RM4 to RM5 per kg, falsely labelled as used or industrial oil. 'Investigations revealed several organised syndicates behind these schemes. Thousands of kilogrammes of subsidised oil have been seized after being diverted for illegal resale,' she said. The ministry's enforcement teams uncovered the operations through on-ground inspections and online monitoring, including the discovery of suspicious online listings. Syndicates used unlabelled or falsely labelled drums to conceal the oil during transport, with some attempts even made to export the illicit product. Fuziah said three cases were initiated under the Control of Supplies Act 1961 (Act 122) last year, all in Selangor, involving seizures worth over RM364,000. Two cases are already in court, while one remains under investigation, she said. Under the Act, companies found guilty of misappropriating controlled goods like subsidised cooking oil face fines of up to RM2mil, while individuals risk up to RM1mil in fines, three years' jail, or both. Repeat offenders face even harsher penalties of up to RM5mil for companies and RM3mil or five years' imprisonment for individuals. To crack down on these abuses, the ministry has intensified enforcement through multi-agency collaboration involving the Customs Department, police, Malaysian Maritime Enforcement Agency, Malaysian Anti-Corruption Commission, and the Malaysian Palm Oil Board (MPOB). The report in 'The Star' on subsidised cooking oil being resold as used cooking oil. For digital spaces, the ministry has partnered with e-commerce platforms and social media companies to identify and remove suspicious listings. The ministry also leverages its Cooking Oil Price Stabilisation Scheme monitoring system to trace the subsidised oil supply chain from refineries to retailers, and has implemented zoning distribution systems in local markets to prevent misdirection. Fuziah said the ministry is also conducting audits on manufacturers and packagers to ensure compliance and deter misuse. This coordinated strategy, she added, enables swift responses to public complaints and digital surveillance findings, triggering investigations, digital traceability and joint enforcement raids. Legal action may also be taken under other relevant laws, including the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (Act 613). 'This is a serious matter involving the abuse of public subsidies. The ministry will not hesitate to act against those who profit at the expense of the rakyat,' Fuziah stressed. The Star previously reported that subsidised cooking oil, sold at RM2.50 per kg, can fetch up to RM3.50 per kg when resold as used cooking oil (UCO), raising concerns over profiteering. Collectors have reported cases of new oil being misrepresented as UCO to exploit the price difference. In response, the MPOB is reviewing standards to better distinguish UCO from palm oil by-products such as sludge palm oil, particularly in the export stream.
The Star
09-06-2025
- Business
- The Star
Dr Wee: Do your homework first
KUALA LUMPUR: Amending the Control of Supplies (Amendment) Act 2021 (Act 122) was never about regulating the use of subsidised liquefied petroleum gas (LPG), said Datuk Seri Dr Wee Ka Siong (pic). The MCA president, who referred to parliamentary hansards in 2021, said the amendments only gave wider enforcement powers to Domestic Trade and Cost of Living Ministry officers. Dr Wee also said the amendments were debated by numerous MPs from both sides of the political divide before it was passed in Parliament in March 2022. 'Not a single MP mentioned the permit for three subsidised LPG gas cylinders or the use of commercial LPG for restaurants,' said Dr Wee in a video posted on Facebook on Sunday. Dr Wee said when then Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi was giving a Parliament reply in March 2022, he never mentioned the regulation on subsidised gas cylinders. 'Datuk Armizan Mohd Ali, you were not at the Dewan Rakyat then, but you could have checked the Hansard. Do your homework before accusing me,' Dr Wee said. Armizan, the current Domestic Trade and Cost of Living Minister, had claimed that the law behind the enforcement, where eateries are required to use 14kg commercial LPG cylinders, was passed when Dr Wee was in the Cabinet in 2021. 'Maybe the regulation on the use of cooking gas in a subsidised gas cylinder not exceeding 42kg was an internal ministerial order, or an instruction from the administration,' added Dr Wee. Dr Wee said the law behind the enforcement where eateries are required to use 14kg commercial liquefied petroleum gas (LPG) was introduced since the 2000s, but it was never enforced until the first Pakatan Harapan government in 2019. 'In early 2019, the domestic trade and consumer affairs minister issued orders making it compulsory for restaurants, coffee shops and hawkers to use commercial LPG. 'But Chong Chieng Jen, who was the deputy minister, announced the postponement of that policy following public concerns over price hikes on food. He said food and beverages (F&B) operators are allowed to use subsidised LPG,' said Dr Wee. 'And now, they are trying to enforce it again under the Madani government in 2025.' He also demanded an apology from Armizan. 'You should apologise to me for your carelessness. As the spokesman of the people, I should have not been sacrificed,' he said. Meanwhile, Armizan shot back at Dr Wee, saying he was talking about the Control of Supplies (Amendment) Regulations 2021 during a press conference on June 5 and not the Control of Supplies (Amendment) Act 2021 which the MCA president was referring to. 'It is surely impossible to find the legal provisions that I was referring to because as I mentioned A, he was referring to Z,' said Armizan in a statement on Facebook yesterday. Previously, Armizan had said Ops Gasak is being carried out under three existing laws – the Control of Supplies Act 1961, the Price Control and Anti-Profiteering Act 2011 and the Control of Supplies (Amendment) Regulations 2021. Armizan had also said that the regulation was enforced during the previous administration in 2021, of which Dr Wee had served as a Cabinet Minister. Yesterday, Dr Wee had said though he served as a Cabinet Minister in 2021, he has never been involved in approving such regulations. On Thursday, Armizan had said that small and micro-scale F&B operators will be exempted from enforcement under the ongoing Ops Gasak Armizan said the Cabinet agreed to review the regulations on the use of subsidised LPG cylinders by such traders, after recommendations submitted by the Domestic Trade and Cost of Living Ministry. Ops Gasak, which began on May 1 and will run until Oct 31, is meant to curb illegal activities such as decanting (transferring gas from subsidised LPG cylinders to non-subsidised ones), smuggling and the misuse of subsidised LPG by medium and large-scale industrial sectors. Dr Wee had said Ops Gasak should have focused on large-scale operations and at the borders, and not on petty traders and hawkers. The crux of the issue, he said, is the smuggling activities at the borders and abuse of targeted subsidies. The Petaling Jaya Coffeeshop Association has also said a switch to commercial LPG by hawkers could lead to consumers paying higher food prices.
The Star
08-06-2025
- Business
- The Star
Don't make accusations without basis, Dr Wee tells Armizan
KUALA LUMPUR: Amendments to the Control of Supplies (Amendment) Act 2021 (Act 122) was never about regulating the use of subsidised liquefied petroleum gas (LPG), says Datuk Seri Dr Wee Ka Siong. The MCA President, who referred to the 2021 parliamentary Hansards, said the amendments only gave wider enforcement powers to Domestic Trade and Cost of Living Ministry officers. He said the amendments were debated by numerous MPs before it was passed in Parliament in 2021. "Not a single MP mentioned the permit for three subsidised LPG gas cylinders and the use of commercial LPG for restaurants," Dr Wee said in a video posted on social media on Sunday (June 8). He said when then-domestic trade and cost of living minister Datuk Seri Alexander Nanta Linggi gave a Parliament reply in March 2022, he never mentioned regulations about subsidised gas cylinders. "Datuk Armizan Mohd Ali, you were not at the Dewan Rakyat then but you could have checked the Hansard – do your homework before accusing me," he said. Armizan, who is Domestic Trade and Cost of Living Minister, had claimed that the law where eateries are required to use 14kg commercial LPG cylinders, was passed when Dr Wee was part of the Cabinet in 2021. "Maybe the regulations on the use of gas in subsidised gas cylinders not exceeding 42kg was an internal ministerial order, or it could be an instruction from the administration," he said. Dr Wee added that the law was never enforced until the first Pakatan Harapan government in 2019. "During early 2019, the domestic trade and consumer affairs minister issued orders making it compulsory for restaurants, coffee shops and hawkers to use commercial LPG. "But Chong Chieng Jen, who was the deputy minister then, announced a postponement of that policy following concerns food prices may go up. "And now, they are trying to enforce it again under the Madani government in 2025," he said. Dr Wee also demanded an apology from Armizan. "You should apologise to me for your carelessness," he said, adding he was acting as "the spokesman of the people". On Thursday (June 5), Armizan said small and micro-scale food and beverage operators would be exempt from enforcement under the Ops Gasak. Ops Gasak, which began on May 1 until Oct 31, is meant to curb illegal activities such as decanting (transferring gas from subsidised LPG cylinders to non-subsidised ones), smuggling and the misuse of subsidised LPG by medium and large-scale industrial sectors. Dr Wee said Ops Gasak should have focused on large-scale operations and at borders – not petty traders and hawkers. The Ayer Hitam MP also said consumers would ultimately bear the cost of eateries using LPG for commercial use, which costs 170% more than subsidised gas for domestic purposes.
New Straits Times
23-05-2025
- Business
- New Straits Times
KPDN probes wholesaler for supplying LPG to unlicensed retailer
ALOR STAR: The Ministry of Domestic Trade and Cost of Living (KPDN) has launched an investigation into a liquefied petroleum gas (LPG) wholesaler for supplying the controlled item to an unlicensed retailer. Kedah KPDN branch director Muhammad Nizam Jamaludin said the offence was uncovered after its enforcement team raided a retail premises on 17 May under 'Ops Gasak 2025'. "The enforcement team took action against a retail business operating in Alor Star for selling a controlled item, LPG, without a valid licence or authorisation from the Controller of Supplies. "The team subsequently seized 20 LPG cylinders and purchase documents for further investigation. The total estimated value of the confiscated items is RM2,494," he said in a statement. Nizam said that following the seizure, the ministry launched an investigation on Tuesday into the wholesaler for supplying controlled LPG to an unauthorised party. The case is being investigated under Section 21 of the Control of Supplies Act 1961 [Act 122], under which any individual found guilty may be fined up to RM1 million. For subsequent offences, the penalty may increase to a fine of up to RM3 million or imprisonment for a term not exceeding three years, or both. For companies, the fine may be up to RM2 million and, for repeat offences, up to RM5 million. The ministry reminded the public that any individual intending to trade in or store controlled items must obtain valid permission, or a relevant licence or permit.
The Sun
21-05-2025
- Business
- The Sun
Negeri Sembilan KPDN seizes RM60,000 worth of LPG tanks
SEREMBAN: A total of 255 tanks of liquefied petroleum gas (LPG) of various weights and brands were seized in Op Gasak 2025 in Negeri Sembilan with an estimated total value of RM 67,365.60 from May 1 until yesterday. State Entrepreneurship, Human Resources, Climate Change, Cooperatives and Consumerism Action Committee chairman, S. Veerapan said inspections were carried out on 25 premises around the state involving wholesalers, distributors, retailers and also industry. Through the operation, five investigation papers were opened, with one individual arrested, and a case was opened under the Control of Supplies Act 1961 (Act 122). 'KPDN continues to strengthen its enforcement role through a targeted, data-based as well as consumer and trader education-oriented approach,' he told reporters here today. Meanwhile, Veerapan said Op Gasak was not intended to withdraw LPG subsidies from eligible consumers, but rather it was an enforcement of existing regulations to ensure that the subsidies reached the target groups in need. Veerapan said the leakage of LPG subsidies caused huge financial implications for the government, with estimated losses reaching RM3 billion a year. 'The public needs to be more informed, responsible and protected consumers. KPDN calls on all citizens to continue to be strategic partners in combating trade misconduct and supporting the government's efforts towards creating a fair, sustainable and resilient business ecosystem,' he said.
