Cooking oil subsidy system tightened as 179 companies barred from eCOSS scheme

**Malaysia Tightens Cooking Oil Subsidy System, Blocks 179 Companies from eCOSS Scheme**

The Malaysian government has taken a significant step in ensuring the integrity of its cooking oil subsidy scheme by deactivating 179 companies from the eCOSS system for violating regulations and conditions. This move is expected to have a substantial impact on the country's efforts to provide affordable cooking oil to its citizens. The decision to block these companies is a clear indication of the government's commitment to preventing misappropriation of subsidies and ensuring that the benefits of the scheme reach those who need it most.

Background & Context

The Cooking Oil Price Stabilization Scheme (eCOSS) was introduced to monitor the distribution of subsidised cooking oil packets and ensure that the benefits of the scheme reach the intended recipients. The scheme has been instrumental in providing affordable cooking oil to Malaysians, with over 5 million citizens registering for the scheme since its pilot implementation in May 2025. However, the increasing number of users has also led to a rise in complaints and feedback, with 13,354 recorded in 2024, 5,320 in 2025, and 9,050 in 2026.

The growing number of users has also led to concerns about the misuse of identities and the sale of subsidised cooking oil to non-citizens. In response to these concerns, the government has intensified enforcement and introduced measures to prevent misappropriation of subsidies. The eCOSS system has been equipped with several layers of security, including electronic Know Your Customer (eKYC) technology, which requires users to match a selfie with their identification document during registration.

Key Details

According to Deputy Domestic Trade and Cost of Living Minister Datuk Fuziah Salleh, the deactivated companies committed violations including not complying with the allowed storage limit, selling above the allowed limit, selling to non-Malaysians, operating using expired licences, and having dubious purchase-sales ratios. The minister also stated that 13 cases involving the Control of Supplies Regulations (Prohibition on the Sale and Purchase of Controlled Goods) [Cooking Oil] 2026 violations were recorded, with three cases involving the sale of subsidised packet cooking oil to non-citizens, with seized goods valued at RM65.

The eCOSS system has also been integrated with MyDigital ID and cross-checked against the database of the National Registration Department to ensure the authenticity and accuracy of users' identities. The minister assured that every report on identity misuse in the eCOSS app would be investigated thoroughly if an official complaint and sufficient evidence are provided.

What Experts Say

Experts say that the government's decision to block 179 companies from the eCOSS system is a positive step towards ensuring the integrity of the scheme. "The government's efforts to prevent misappropriation of subsidies and ensure that the benefits of the scheme reach those who need it most are commendable," said Dr. Lee, an expert in public policy. "The introduction of electronic Know Your Customer (eKYC) technology and the integration of the eCOSS system with MyDigital ID and the National Registration Department's database are innovative measures that will help to prevent identity misuse and ensure the authenticity of users' identities."

Key Takeaways

• 179 companies have been deactivated from the eCOSS system for violating regulations and conditions.
• The government has intensified enforcement and introduced measures to prevent misappropriation of subsidies, including electronic Know Your Customer (eKYC) technology.
• The eCOSS system has been integrated with MyDigital ID and cross-checked against the database of the National Registration Department to ensure the authenticity and accuracy of users' identities.
• Over 5 million Malaysians have registered for the eCOSS scheme since its pilot implementation in May 2025, with 91 million packets sold.

What This Means For You

The government's efforts to ensure the integrity of the cooking oil subsidy scheme are expected to have a positive impact on the lives of Malaysians. With the introduction of electronic Know Your Customer (eKYC) technology and the integration of the eCOSS system with MyDigital ID and the National Registration Department's database, citizens can be assured that the benefits of the scheme will reach those who need it most. Additionally, the government's decision to block 179 companies from the eCOSS system will help to prevent misappropriation of subsidies and ensure that the scheme is administered fairly and transparently.

As a citizen, it is essential to be aware of the measures that the government is taking to ensure the integrity of the cooking oil subsidy scheme. If you have any concerns or complaints about the scheme, you can report them to the authorities. By working together, we can ensure that the benefits of the scheme reach those who need it most and that the scheme is administered fairly and transparently.