Starting March 1, foreign nationals will no longer be allowed to purchase subsidised 1kg packets of cooking oil priced at RM2.50, Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali announced.
Speaking in the Dewan Rakyat yesterday, he said regulations would first be drafted under the Control of Supplies Regulations pursuant to Section 6 of the Control of Supplies Act 1961 and submitted to the Attorney-General’s Chambers before the ban is enforced.
“The move aims to strengthen control over subsidised cooking oil and ensure that the assistance reaches its intended beneficiaries,” he said.
Armizan noted that there have been numerous calls to prohibit purchases by foreigners, but retailers previously raised practical concerns over implementation, including monitoring and enforcement.
To enforce the ban, a Cooking Oil Price Stabilisation Scheme will digitally track transactions across the entire distribution chain. By linking purchases to national identity card details, retailers and enforcement agencies can effectively implement the restriction.
The system will monitor purchases to prevent diversion and smuggling of subsidised packet cooking oil, a long-standing issue in the country.
Acknowledging concerns that the system’s mobile app may be challenging for senior citizens, low-income groups, and rural residents without internet access, Armizan explained that the app has been gradually rolled out since May 2025, starting in Putrajaya, followed by selected Rahmah Madani outlets in Johor and other states. During this pilot phase, manual purchases remain available, and retailers provide on-site assistance for those without mobile devices.
The system will also be integrated with the MyKasih platform, allowing purchases to be verified using the national identity card, similar to the Sara programme. The updated MyKad’s QR code can be scanned to confirm eligibility for subsidised cooking oil.
Armizan noted that the cost of implementing the system is substantial, reaching nearly RM1.9 billion, but it addresses a lack of data on who was purchasing subsidised oil in previous years. The pilot project, which began on May 1 last year, recorded that Malaysian citizens had bought 20,361,432 packets.
He said the system will continue to be improved to ensure digital recording at every stage of the supply chain and at retail outlets. “Recording end-consumer purchases ensures that subsidies benefit the people while curbing leakages caused by misappropriation and smuggling,” he added.
Under the subsidised cooking oil programme, a monthly allocation of 60,000 metric tonnes is provided primarily for Malaysian households, especially those in the B40 income group. The subsidy applies only to 1kg polybag packets to prevent misuse for industrial purposes or smuggling, a policy in place since 2007.
Before the ban on foreign nationals, consumers were already required to scan QR codes at retail outlets to verify eligibility and ensure purchases were limited to Malaysians.
