How much has the government spent on cooking oil subsidies between 2019 and Feb 2025?

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The government has spent RM10.879 billion on cooking oil subsidies between 2019 and February 2025.

The Public Accounts Committee (PAC) has identified significant inefficiencies in the management of cooking oil subsidies, indicating that the substantial expenditure has not effectively reached its intended beneficiaries. This finding stems from an investigation into the Domestic Trade and Cost of Living Ministry's (KPDN) handling of price controls and subsidies.
Ineffective Targeting of Subsidies

The PAC's report highlights a considerable disparity between the allocated quota under the Cooking Oil Price Stabilisation Scheme (COSS) and Malaysia's actual domestic needs. The monthly quota was set at 60,000 metric tonnes, while domestic requirements were estimated to be between 19,000 and 30,000 metric tonnes. This wide gap meant that the RM10.879 billion allocated between 2019 and February 2025 did not fully benefit the intended recipients due to a lack of targeted distribution.
Misuse by Ineligible Groups

A significant issue identified by the committee was the misuse of subsidised 1kg packet cooking oil. The PAC found that ineligible groups, including foreign nationals and commercial operators, frequently obtained these subsidised products. This practice undermines the purpose of the subsidy, which is intended for genuine domestic consumers.
Weaknesses in Supply Chain Management

Further weaknesses were observed in the management of damaged cooking oil stocks, with an absence of specific standard operating procedures (SOPs) at packing companies. This resulted in the government continuing to incur subsidy costs for damaged goods that would never reach consumers. Additionally, ineffective monitoring at the retail level led to widespread conditional sales practices, stock hoarding, and sales exceeding the controlled price of RM2.50.

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How much has the government spent on cooking oil subsidies between 2019 and Feb 2025?

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