KOTA BHARU, Oct 19 — The Kelantan Ministry of Domestic Trade and Cost of Living (KPDN) has suggested that the exportation of subsidised cooking oil to Thailand be conducted through legal channels to reduce leakage and misappropriation of the subsidy.
Kelantan KPDN Director, Azman Ismail, stated that the suggestion is important because certain parties are taking advantage by selling subsidised cooking oil to the neighbouring country for quick profit, even though the subsidy is intended for Malaysians.
“If you want to sell to Thailand, do it legally through official channels and follow the export laws. We have the mechanism for that, not illegally.
“The factor of high demand in southern Thailand encourages misappropriation to occur. Residents in that area are more inclined to use Malaysian cooking oil because they are confident in its quality, halal status, and lower price compared to local products,” he told Bernama recently.
Azman said that even though Thailand has its own cooking oil production, residents still buy oil from Malaysia.
He said the price of cooking oil in Thailand reaches more than RM8 per litre for corn oil, making Malaysian products more preferred to the extent that people are willing to obtain them through illegal channels.
“The halal factor actually has a very big influence. For them, Malaysian cooking oil is not just cheap but is more reliably halal. That is what makes smuggling difficult to curb completely,” he said.
According to him, the high demand has caused some parties to be willing to take advantage by selling subsidised cooking oil to the neighbouring country for quick profit.
“In the end, it is the government that bears the loss because this subsidy is supposed to be for the Malaysian people. Some parties are willing to take risks simply to earn more money,” he said.
He emphasised that the smuggling of subsidised cooking oil not only affects the government but also results in losses because the subsidy intended for the Malaysian people is being misappropriated abroad.
At the same time, KPDN will continue to cooperate with other enforcement agencies to curb misappropriation in border areas, including Rantau Panjang and Pasir Mas.
Meanwhile, a recent survey by Bernama at a morning market near the Sungai Golok town in southern Thailand found Malaysian-made cooking oil being widely sold.
Local products are easily identifiable by the Malay-language labels and the Malaysian halal logo, and are openly sold alongside other kitchen items without restriction.
The observation also found that some traders were selling large quantities of the cooking oil to local customers, believed to have been brought in through illegal routes along the border to meet the high demand from residents in southern Thailand.
Local trader, Somchai Prasert, 42, said he sold subsidised Malaysian packet oil illegally because it is cheaper than local products and is in high demand from customers.
“Malaysian oil is popular because it is cheap and halal, whereas local oil is more expensive. If I don’t sell it, customers will buy it elsewhere. This is a way to stay competitive and meet demand,” he said.
Another trader, Niran Chai, 35, added that the activity provides immediate profit despite the risks involved.
“We know there are laws, but if we don’t take this opportunity, we lose out because many customers want to buy Malaysian oil,” she said. — Bernama
Malay Mail – Malaysia
