The government will enforce a ban on the purchase of subsidized cooking oil by foreigners starting March 1.
The move aims to close the subsidy loophole that has long burdened the country's finances, thus ensuring that the subsidy reaches the right people in Malaysia.
Minister of Domestic Trade and Cost of Living, Armizan Mohd Ali stated that this ban provides clarity in enforcement after confusion arose among retailers regarding the eligibility of buyers of subsidized oil.
Without strict regulations, control in stores is difficult and the risk of abuse easily occurs.
This measure is implemented using existing legal provisions and is currently being refined with the Attorney General's Chambers to ensure that implementation is clear and does not burden small traders.
The government also relies on the eCOSS system to monitor the purchase of subsidized oil.
This system sets purchase limits based on the number of household members to prevent excessive purchases that are often misused for the benefit of certain parties.
Armizan admitted that the significant price difference between subsidized cooking oil and market oil has led to widespread fraudulent activities.
There are a few parties who take advantage by mixing and reselling subsidized oil to make a profit.
However, enforcement alone is not enough without a comprehensive tracking system. eCOSS has recorded the sale of over 20 million packets of subsidized oil to citizens since its introduction, important data to assess the effectiveness of the subsidy program.
Although this step is seen as appropriate, the question is, will this ban be able to curb fraud completely or simply change the modus operandi?
Subsidies that are supposed to help the people should not become a profit pit for irresponsible parties.
The government now needs to be more aggressive and innovative, not just hoping for a control system that is easy to bypass.
