KLANG – Domestic Trade, Co-operatives and Consumerism . Minister Datuk Seri Hamzah Zainudin said traders would not be able to reap much profit by selling recycled cooking oil because the production cost for processing was expensive.
Dismissing claims that recycled subsidised cooking oil in packets was being sold locally, Hamzah said the recycling process where new and old oil are mixed was far more expensive than the RM2.50 set by the government for a 1kg-packet of cooking oil.
“The process of producing recycled cooking oil is more expensive than the RM2.50 set by the government for the 1kg-packet. If they want to sell at RM2.50, they cannot compete (with us).
“This is only propaganda from certain parties to create panic buying,” he told reporters after visiting a repackaging factory for packed and bottled cooking oil, Soon Hup Edible Oil Sdn Bhd, at the Klang Utama industrial area here today.
The Malaysian Consumer Protection and Welfare Board Deputy President Dr Lee Nan Sang was recently quoted as saying he had received complaints from consumers who were worried that recycled cooking oil was being widely sold in packets in the market.
Following the restructuring of the Cooking Oil Stabilisation Scheme on Nov 1, the price of a 1kg-packet cooking oil was set at RM2.50 but prices of cooking oil sold in bottles above 1kg was subject to market price.
On claims that cooking oil sold in packets was of low quality, Hamzah said there was no difference in the quality sold in packets and bottles.
He said any packaging factory found selling subsidised cooking oil overseas to make big profits will face stern action including having their licences revoked.
Hamzah added that the persons involved could be fined up to RM1 million or imprisoned three years, or both, while for subsequent offences, a fine of RM3 million or five years jail or both can be imposed.
On Soon Hup Edible Oil, Hamzah said the company could produce 700 metric tonnes of cooking oil in packets a month which can meet the demands of the people in the surrounding areas.
Hamzah said the shortage in supply of cooking oil in packets in the market would be resolved at the latest by next week since factory operators and those involved in repackaging cooking oil had already been directed to increase production.
Earlier, he visited the Meru Main Market here to check on the prices of goods. – BERNAMA