Three individuals were arrested in Sabah on Wednesday after Malaysian marine police intercepted an alleged smuggling operation involving subsidised cooking oil destined for a neighbouring country.
The Sabah Region 4 Marine Police Force (PPM) confirmed the operation, which targets the illegal export of state-subsidised edible oils that are meant for domestic consumption only.
The arrests underscore the ongoing enforcement challenges facing Malaysia’s subsidy regime, which has been a focal point for policymakers seeking to control domestic food inflation while managing fiscal outlays.
Authorities have intensified border checks and inter-agency cooperation in recent months to curb the arbitrage trade, where subsidised goods are sold at a profit in neighbouring markets with higher prices.
This latest development follows a series of similar crackdowns across the country.
In recent weeks, six individuals were charged in Shah Alam for possessing more than six tonnes of unlicensed subsidised cooking oil, while authorities in Kelantan intercepted over 20 tonnes of packet cooking oil bound for Thailand.