The division, under the agriculture and food security ministry, seized 645.75 metric tonnes of rice in a joint operation with the police and the Malaysia Checkpoints and Border Agency on May 15 and 16.

“Upon inspection, it was found that the business premises did not have a licence under the Control of Padi and Rice Act 1994.

“Investigations are also being conducted on the company to determine if it was misappropriating price-controlled goods, specifically imported white rice,” the ministry said in a statement.

The ministry also said that for Sabah, Sarawak and Labuan, the government had agreed to give a subsidy of RM950 per tonne for imported white rice beginning October last year, with a retail price of RM31 per 10kg.

“We remind all licence holders to comply with the Control of Padi and Rice Act and its regulations. Strict action will be taken against those who fail to comply,” it said.