How will the Control of Padi and Rice Bill 2026 strengthen enforcement?

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The Control of Padi and Rice Bill 2026 Introduces Enhanced Penalties and Enforcement Measures

The Control of Padi and Rice (Amendment) Bill 2026 will significantly strengthen enforcement within Malaysia's paddy and rice industry by introducing more robust penalties and a clearer regulatory framework. These amendments aim to deter market manipulation and protect the integrity of the nation's food supply chain by updating legislation that has remained largely unchanged since 1994. The overarching goal is to provide a more effective legal instrument for regulating the sector and safeguarding the interests of paddy farmers.
Increased General Penalties to Deter Serious Offences

The amended legislation will see a substantial increase in general penalties for individuals, raising the maximum fine to RM230,000. This elevated penalty structure is specifically designed to target more serious violations. These include critical offences such as operating without the necessary licences, engaging in illegal possession of paddy and rice, conducting unauthorised sales, holding stock without proper permits, and participating in smuggling activities that undermine the domestic market and supply.
Introduction of Specific Penalties for Technical Infringements

In addition to higher general penalties, the Bill introduces specific penalties for a range of technical offences. These are intended to ensure fair enforcement and avoid disproportionate punishment for administrative lapses. Fines of up to RM15,000, imprisonment for up to six months, or a combination of both, will be applicable for infractions like failing to display required licences, not renewing licences within the stipulated period, displaying unclear price labels, and neglecting to maintain accurate daily records.
Addressing Inadequacy of Previous Penalty Rates

The necessity for these legislative changes is underscored by the inadequacy of existing penalty rates, which have not been revised since the Control of Padi and Rice Act 1994. The amendments highlight specific cases to illustrate this point. For instance, a seizure of 45 tonnes of rice valued at RM117,000 in Gerik, Perak, in July 2025, resulted in a mere RM5,000 fine. Similarly, a case in Kubang Pasu, Kedah, in January 2025, involving 49 tonnes of rice worth RM137,000, led to a fine of only RM5,500. These examples demonstrate how current penalties fail to reflect the scale of illicit activities and do not serve as a sufficient deterrent.
Broader Aims of Strengthening Market Regulation and Farmer Protection

Beyond enhanced enforcement mechanisms, the Control of Padi and Rice (Amendment) Bill 2026 is intended to bolster the government's capacity for market regulation and industry development. The legislative update serves as a protective measure for paddy farmers, aiming to prevent market manipulation that could adversely affect their income and rights. By strengthening the legal framework, the government seeks to ensure greater transparency in transactions and safeguard the long-term sustainability of the national paddy and rice ecosystem.

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How will the Control of Padi and Rice Bill 2026 strengthen enforcement?

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