The raid led to the arrest of two men, both Malaysians, aged 48 and 67.

The ministry’s enforcement director-general, Azman Adam, said the syndicate used fake vehicle registration plates.

He said the premises was an illegal storage facility used to transfer subsidised diesel before it was sold on the black market.

“A further inspection of the facility uncovered 9,000 litres of diesel as well as equipment used for the illegal activities,” he said in a statement today.

Azman said a lorry, several intermediate bulk container tanks and a skid tank containing diesel, a motor pump, documents and other equipment were seized from the premises. Their total value was estimated at RM88,300.

He said the case is being investigated under the Control of Supplies Act 1961 (Act 122) to identify individuals or companies involved in the diesel distribution chain.

The companies would be investigated under the Anti-Money Laundering, Anti-Terrorism Financing and Proceeds of Unlawful Activities Act 2001.