The Malaysian Domestic Trade and Cost of Living Ministry (KPDN) has deactivated 179 companies from the Cooking Oil Price Stabilisation Scheme (eCOSS) for regulatory violations, including unauthorized storage and illegal sales to non-citizens. According to Deputy Minister Datuk Fuziah Salleh, the ministry is leveraging digital verification tools like eKYC and MyDigital ID to combat subsidy leakages across a supply chain that has served over 5.01 million users since the app’s 2025 pilot launch.
Why is the government deactivating eCOSS companies?
KPDN officials identified systemic failures among 179 registered entities that threatened the integrity of the subsidised cooking oil program. According to Deputy Minister Fuziah Salleh, these companies violated the Control of Supplies Regulations by maintaining dubious purchase-sales ratios, exceeding legal storage limits, and operating on expired licenses. The ministry’s enforcement actions are designed to ensure that the 1kg cooking oil packets reach their intended demographic—low-income Malaysian citizens—rather than being diverted to the black market or sold to ineligible buyers.
Since the introduction of the eCOSS app, the ministry recorded 13,354 complaints in 2024, followed by 5,320 in 2025, and 9,050 complaints as of mid-2026. This trend highlights the public’s growing role in monitoring supply chain transparency.
How does digital verification prevent subsidy misuse?
The eCOSS system now employs a multi-layered security architecture to verify the identity of every consumer. According to KPDN, the app integrates electronic Know Your Customer (eKYC) technology, which forces users to match a live selfie against their official identification documents during registration. This process is further cross-referenced with the National Registration Department’s database and MyDigital ID, a move intended to neutralize the “identity misuse” concerns that previously went viral on social media.
What are the legal consequences for subsidy fraud?
Violating the Control of Supplies Regulations carries tangible financial risks for both retailers and unauthorized purchasers. Official records from KPDN show that recent enforcement actions led to the seizure of goods valued at over RM15,000 in three separate cases involving non-citizens. Fines totaling RM7,000 were issued in these instances. The ministry maintains that any report of identity theft or fraudulent transactions will trigger a thorough investigation, provided that complainants submit sufficient evidence via the eAduan Portal.
| Violation Type | Action Taken |
|---|---|
| Sale to non-citizens | Seizures and fines |
| Dubious sales ratios | Company deactivation |
Future trends in subsidy monitoring
The transition toward a fully digitized supply chain suggests that Malaysia is moving away from manual enforcement toward real-time data auditing. By tracking the flow of goods from manufacturer to wholesaler and finally to the consumer, the KPDN aims to minimize the “leakage” of controlled goods. According to ministry statements, the current 91 million packets sold through the app serves as a baseline for future adjustments to subsidy allocation, ensuring that supply better matches actual local demand.
Frequently Asked Questions
- What should I do if I suspect subsidy fraud? Report the suspicious activity immediately through the KPDN eAduan Portal or email the ministry directly with evidence.
- Is my personal data safe in eCOSS? The app uses eKYC and MyDigital ID to cross-check identities, ensuring only verified Malaysian citizens access the subsidised packets.
- Why were 179 companies removed from the system? They violated regulations including unauthorized storage, selling above limits, and failing to verify the citizenship of buyers.
Pro tip: Always check your receipt when purchasing subsidised goods to ensure the transaction is correctly recorded, as this helps the ministry maintain an accurate digital trail of supply.
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