Ahmed Razman Abdul Latiff of Putra Business School said the government should consider extending targeted subsidies to cooking oil, building on from last June’s diesel subsidy rationalisation.
He said the savings from the diesel subsidy rationalisation had enabled the expansion of the Sumbangan Asas Rahmah programme to 5.4 million recipients this month, up from 700,000, and boosted annual aid for Sumbangan Tunai Rahmah and e-Kasih households from RM1,200 to RM2,100.
“Those who qualify would be able to purchase cooking oil at a subsidised price under this system.
“This approach can significantly reduce leakage and ensure that only eligible groups benefit from the subsidies,” he told FMT, adding that the mechanism could be linked to MyKad usage.
Finance minister II Amir Hamzah Azizan reportedly said the diesel subsidy rationalisation was projected to save Malaysia between RM7.2 billion and RM7.5 billion annually.
Universiti Kuala Lumpur academic Aimi Zulhazmi Abdul Rashid supported the idea, saying the savings put the government in a better position to extend targeted subsidies to other essential goods still covered under blanket subsidy schemes.
“Blanket subsidies are inefficient. Like fuel, cooking oil is often misused by industries and smuggled across borders, leading to significant leakage,” he said.
Deputy domestic trade and cost of living minister Fuziah Salleh previously said the government had spent RM1.945 billion in 2024 under the cooking oil price stabilisation scheme.
The programme provides 60,000 tonnes of subsidised oil packets monthly at RM2.50 per kg.
However, the scheme drew criticism after enforcement operations revealed that foreigners were among those benefiting from the subsidised packets.
This led to renewed calls for the replacement of the subsidy with a cash transfer system based on verified household consumption to ensure that only deserving Malaysians receive the aid. - FMT
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