Malaysia's Public Accounts Committee (PAC) has formally called for a major overhaul of the national cooking oil subsidy program following findings that billions of ringgit in public funds have failed to reach intended recipients. The committee's investigation, prompted by the Auditor-General's Report 2025, revealed that the current Cooking Oil Price Stabilisation Scheme (COSS) allocates a monthly quota of 60,000 metric tonnes, which is significantly higher than the estimated domestic demand of 19,000 to 30,000 metric tonnes. This massive oversupply, combined with a lack of targeted distribution, has led to widespread misuse of subsidised 1kg packets by ineligible groups, including foreign nationals and commercial operators.
Between 2019 and February 2025, the government spent approximately RM10.879 billion on these subsidies. The PAC identified several systemic weaknesses, including poor enforcement at the retail level, which has allowed for stock hoarding, conditional sales, and prices exceeding the RM2.50 ceiling. Furthermore, the committee noted that the government has been paying subsidies for damaged cooking oil stocks due to the absence of clear standard operating procedures at packaging companies.
To address these issues, the PAC has recommended that the Ministry of Domestic Trade and Cost of Living (KPDN) expedite the transition to a fully digital, targeted subsidy system using the eCOSS platform. The committee also urged the government to review the current subsidy rate of RM600 per metric tonne paid to packers to ensure it aligns with actual operational costs. Additionally, the PAC suggested that authorities consider redistributing refining quotas to prioritize competitive local companies, as foreign firms currently control 67% of the sector. The government is now expected to review these recommendations to curb further wastage and ensure that financial assistance effectively supports eligible Malaysian households.