Its deputy director of enforcement (operations), Shamsul Nizam Khalil, said such stern action was necessary to remind packaging companies and wholesalers not to get involved in such activities.

He said these companies were found to have transferred 1kg polybag packets of cooking oil to 2kg, 3kg and 5kg bottles and also transferred LPG from 14kg barrels to industry-level canisters to sell them at a higher price or smuggle them to neighbouring countries.

“Such crimes have a huge impact on the supply of these goods in the market for the use of the public, especially the needy.

“At the same time, this has caused the government to incur millions of ringgit in losses in the provision of special subsidies to alleviate the cost of living of the people,” he said in a statement.

Shamsul added that investigations were conducted in accordance with Section 21 of the Control Supplies Act 1961, read together with Regulation 3(1) of the Control of Supplies Regulations 1974.

He said other offences, under Section 20(1) of the Control Supplies Act 1961 and Section 4(1) of the Anti-Money Laundering, Anti Terrorism Financing and Proceeds of Unlawful Activities Act 2001 (AMLATFPUAA), were being investigated.

Shamsul said those convicted may be fined up to RM1 million or imprisoned for up to three years, or both. The company can also be fined up to RM2 million.

“The ministry is committed to curbing misappropriation of controlled and subsidised goods to ensure a stable supply in the market,” he said.