KUALA LUMPUR: The Domestic Trade and Cost of Living Ministry (KPDN) seized nearly six tonnes of cooking oil worth around RM15 million at an illegal storage facility in Taman Reko, Kajang, on Friday.
Metro Ahad reported that the bust was triggered by intelligence on a syndicate smuggling subsidised cooking oil to Thailand.
In coordination with Selangor KPDN, enforcement officers raided the facility at 2.58pm after a man inside refused to open the gate. A local lorry driver was arrested.
Authorities found 300 boxes containing 5,100 packages (5.1 tonnes) of subsidised cooking oil and an additional tank holding 850 litres.
The seized oil's market value is nearly RM15 million.
Investigations are ongoing under the Supply Control Act 1961, with potential fines of up to RM1 million or three years' imprisonment for first-time offenders. Repeat violators face higher penalties.
On Aug 9, another syndicate was busted in Jeram, Selangor, with four tonnes of repackaged oil seized.
A July 28 raid in Kulai, Johor, confiscated 1.6 metric tonnes violating storage regulations.
Economist Dr Ahmed Razman Abdul Latiff said that there are lucrative profits for smugglers, noting they make RM2.70 per 1kg packet.
He added that the government spends RM1.8 billion subsidising cooking oil for Malaysians, but smuggling undermines this effort.
Since January, KPDN has seized RM2.66 million worth of subsidised cooking oil in 339 operations, with total seizures valued at RM80.39 million across 2,029 smuggling cases.