Domestic trade and cost of living minister Armizan Mohd Ali said the mobile app will be used to monitor the sale of cooking oil.
He said the buyers’ data will be recorded upon purchase, and this will allow the ministry to determine if the subsidised cooking oil is sold to its target market.
Armizan said the app is currently being used in a pilot project and would be included as part of the Cooking Oil Price Stabilisation System (eCOSS).
“Currently, there is no record of who retailers sell (the subsidised cooking oil) to, which has led to leakages. Some of these subsidised products end up in the hands of unauthorised parties, including smugglers.” he said when winding-up the debate on the Supplementary Supply Bill (2024) 2025 for his ministry.
He said the app would allow the ministry’s enforcement officers to take immediate action against those who are not eligible to purchase the product.
Armizan later told FMT that eCOSS had been introduced in 2023 to track the supply chain of subsidised cooking oil.
As of last year, repackers and refineries have been required to submit subsidy claims based on eCOSS records.
However, the system only tracks distribution from refineries to repackers, wholesalers and retailers, leaving a gap at the retail level, he said.
Such limitations increased the risk of leakages, including smuggling and fraudulent repackaging of subsidised cooking oil for resale at higher prices.
“The mobile app, integrated with the eCOSS system, will provide a solution by requiring buyers to install the mobile app, which will be used to verify that the subsidised cooking oil was purchased by the target market,” he said.
Armizan said ensuring that 60,000 metric tonnes of subsidised cooking oil are available in the market every month requires more than just enforcement.
It also requires an effective leakage risk management approach, he said, adding that the eCOSS mobile app “is the answer”. - FMT
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