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The Ministry of Domestic Trade and Cost of Living (KPDN) is weighing a significant policy shift that would see mandatory audits enforced on all fuel retailers located within a 50km radius of the national border
This proposed "dragnet" is designed to choke the supply lines of sophisticated cross-border smuggling syndicates that continue to exploit Malaysia's fuel subsidies, according to The Star.
Deputy Minister Datuk Dr Fuziah Salleh confirmed that the government is currently reviewing existing policies to further restrict fuel purchases in high-risk zones. While certain purchase limits are already in place in border areas, Fuziah acknowledged that these measures have not completely halted leakages.
The proposed 50km audit zone would encompass hundreds of petrol stations across northern states such as Kelantan, Perlis, and Kedah, as well as border towns in Sabah and Sarawak.
The ministry is also considering implementing a stricter compliance system for fleet cards
This follows a recent Cabinet approval to deploy police officers directly at petrol stations near border areas to strengthen enforcement and provide a visible deterrent against smuggling activities.
Fuziah issued a stern warning to petrol station operators, stating that there will be "zero tolerance" for those found colluding with syndicates. She characterised such collusion as a betrayal of the Malaysian public, as it misappropriates billions of ringgit in subsidies intended for eligible citizens.
The ministry's strategy has also evolved to target the masterminds behind these operations rather than focusing solely on fuel seizures
Authorities are now invoking the Anti-Money Laundering Act (AMLA) to dismantle syndicate networks at their core. This approach allows the government to freeze assets and track financial flows, effectively preventing these criminal groups from re-emerging under different identities.
Fuziah called on local communities to act as the nation's "first line of defence". Residents in border towns are urged to remain vigilant and report any suspicious activities through the ministry's official communication channels, including hotlines, social media platforms, and dedicated service applications.
