MP proposes phasing out cooking oil price stabilisation scheme

A Public Accounts Committee report has exposed weaknesses in Malaysia's cooking oil price stabilisation scheme (COSS), prompting calls to phase it out and redirect funds to targeted assistance. The scheme, which has seen RM10.879 billion spent from 2019 to 2025, has faced issues such as quota oversupply, poor subsidy management, and transparency concerns.

Tan Kar Hing, a lawmaker, proposed abolishing the COSS in stages to better utilise public funds, suggesting the government focus on more targeted schemes like Sumbangan Asas Rahmah (SARA). Notably, 67% of the quota is controlled by foreign-owned companies, while local participation is limited. The lawmaker also addressed concerns about increased costs for food and beverage traders and consumers, noting that the scheme was not originally intended for businesses.

Regarding Malaysia's fiscal position, Tan cautioned about the government's 2027 revenue projection of RM380 billion, stating it does not account for new fiscal measures like tax cuts. The government has also ordered a RM10 billion cut in operating expenditures this year, with debt servicing costs projected to reach RM61 billion next year.

Tan questioned the government's ability to maintain a surplus budget and sought clarification on measures to prevent repeated spending cuts.