What is eCOSS and how will it curb cooking oil subsidy leakages?

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eCOSS is a system developed to facilitate targeted cooking oil subsidies and prevent leakages.

The Cooking Oil Stabilisation Scheme System, or eCOSS, is a digital platform being developed and implemented by the Ministry of Domestic Trade and Cost of Living (KPDN) since 2023. Its primary objectives are to enable the precise distribution of cooking oil subsidies and to mitigate existing leakages within the supply chain. The system is designed to enhance transparency and prevent irregularities.
eCOSS Implementation and Phases

KPDN is rolling out eCOSS in two distinct phases to ensure a comprehensive integration across the cooking oil supply chain. The first phase involves the gradual enforcement of the system among all participants in the supply chain, ensuring that each touchpoint is brought under its purview. Following this, the system's reach is being expanded through the eCOSS Mobile Application, which has been undergoing pilot testing since May 2025. This phased approach allows for systematic integration and refinement of the system's functionalities.
Mechanisms to Curb Leakages

The full implementation of eCOSS is considered a critical improvement and a proactive risk management strategy aimed at curtailing subsidy leakages. By digitising record-keeping and transaction processes, the system effectively prevents the manipulation of manual records and the misappropriation of cooking oil supplies. This digital oversight ensures that subsidies are directed to their intended beneficiaries, thereby reducing opportunities for fraudulent activities.
Future Enhancements for Targeted Distribution

Further enhancements to eCOSS are planned to increase its precision in subsidy distribution. Future iterations will incorporate a new version of the identity card, which will feature QR code scanning capabilities for identity verification. This will allow for more accurate identification of eligible recipients and a more targeted distribution of subsidies. Crucially, this measure is expected to prevent foreign nationals from accessing these subsidised goods, ensuring that the benefits are reserved for Malaysian citizens.
Encouraging Local Refiner Participation

In addition to the digital system, KPDN is implementing phased intervention measures to encourage repackers to source their cooking oil supplies from locally owned refineries. This includes the introduction of quota replacement requirements, which incentivise the use of local suppliers. Furthermore, a business matching mechanism is being established to facilitate direct connections between local refiners and repacking companies, thereby fostering a more robust and domestically focused supply chain.

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What is eCOSS and how will it curb cooking oil subsidy leakages?

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