KANGAR: Cooking oil subsidised by the government of Malaysia for the lower-income group has become the target of smugglers for sale in neighbouring Thailand and Cambodia.

This was discovered following the arrest of two foreigners – a 52-year-old Thai driver and a 56-year-old Cambodian woman by customs officers, where 116 packs of 1 kg polybag palm cooking oil were found inside their car.

The cooking oil packets labelled “for domestic market only” were kept in paint containers and suitcases.

Perlis Customs Director Ismail Hashim said the arrest was made after the enforcement team flagged down a Thailand-registered Toyota Altis at the Padang Besar Immigration, Customs, Quarantine and Security (ICQS) Complex at 12:50 on 24 July.

The 116 packets of cooking oil priced at RM2.50 per packet and worth RM290 were confiscated by the enforcement officers under Section 135(1)(e) of the Customs Act 1967.

Initial investigation showed that the duo bought the cooking oil at sundry shops and supermarkets in Perlis at RM2.50 per packet.

They planned to sell the cooking oil in Thailand and Cambodia at a price between RM5 and RM6, making a more than 100% profit.

Cooking oil is more expensive in Thailand, and the 1 kg polybag and bottled cooking oil are found in markets in southern Thailand.

It was reported that Malaysia produced 60,000 metric tons of subsidised cooking oil a month to cater to the needs of 5.8 million eligible households.

The subsidy expenditure was RM500 million in 2020, RM2.2 billion in 2021, and RM4 billion in 2022.