KUALA LUMPUR, July 23 — Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali today said the ministry is prioritising efforts to ensure the effective distribution of 60,000 metric tonnes of subsidised cooking oil each month reaches its intended recipients without leakage, before considering alternative subsidy mechanisms such as cash transfers under the SARA programme.
He explained that the ministry began implementing its digital monitoring system in 2023 to track the movement of subsidised oil from packaging plants to retailers.
However, the current system does not yet monitor purchases at the consumer level.
“To address this, KPDN will expand the system starting in 2025 through the rollout of eCOSS mobile application, currently being piloted under the Rahmah Sales Programme.
“This app will be integrated with data from the National Registration Department (JPN) to identify legitimate buyers and prevent purchases by ineligible groups, such as foreign nationals,” he said during the debate on the Auditor-General’s Report in Parliament today.
The ministry said the system will enable the government to collect detailed data on who is buying the subsidised oil, where it is being bought, and in what quantity, allowing for more accurate assessment of subsidy beneficiaries and better targeted policies.
He said the government previously had no clear data on who was actually using the subsidised packet cooking oil, but with the eCOSS system and new mobile app, it will soon be able to identify subsidy recipients more accurately.
In response to Pulai MP Suhaizan Kayat, the minister said that although 3.16 million households need only around 20,000 tonnes of cooking oil monthly, the 60,000-tonne allocation also covers small traders, restaurants, school canteens, hostels, and care centres.
“The original 2016 estimate of 40,000 metric tonnes, based on 1.5kg per capita, was later revised to 60,000 metric tonnes to accommodate these broader usage patterns.
“It was also noted that in 2022, even the then prime minister (Datuk Seri Ismail Sabri Yaakob) acknowledged that enforcement should not be taken against small food vendors using subsidised oil,” he explained.
This, he said, reflects how the programme has expanded beyond household use in practice.
He then said KPDN remains committed to curbing leakage, preventing misuse and smuggling, and ensuring that subsidies reach the people who truly need them.
