Kota bharu: Subsidised fuel oil smuggling activities along the Malaysia-Thailand border continue to raise concerns as syndicates use the strategy of renting private land as an “illegal base” and exploit geographical constraints and the limited enforcement powers in river areas. Kelantan Domestic Trade and Cost of Living (KPDN) director Azman Ismail said smugglers rent land along the Golok River to turn the location into a small jetty for illegal oil transfers before sending it to neighbouring countries.
According to BERNAMA News Agency, landowners often give the excuse of using it for agriculture or flood clean-up work, but the area is actually used for illegal operations. Azman explained that the landowner rents out the area, but the operations are managed by other parties such as supervisors, transporters, watchmen, and payment collectors. Each individual involved is compensated according to their role in the successful oil smuggling transaction.
Azman elaborated that the subsidised fuel oil brought to Thailand is sold by weight, unlike in Malaysia, where it is sold by the litre. The price structure fluctuates with market demand in Thailand, with recent transactions indicating a shift from RM31 for a three-litre drum to about RM2.60 per litre. This illegal activity not only results in economic losses due to subsidies but also raises security concerns.
Operations in the river border zone complicate enforcement efforts as smugglers can quickly retreat into Thai waters. Azman noted instances of shootings from smugglers when Malaysian authorities approached, posing significant risks to personnel due to the proximity of the border and limited night visibility. He highlighted the lack of lighting and control on the Malaysian side of the river, which contrasts with the more organised infrastructure on the Thai side.
Azman supported a proposal by Kelantan police chief Datuk Mohd Yusoff Mamat for constructing a security wall on the Kelantan-Thailand border to curb illegal smuggling. However, he pointed out that issues like land ownership, budget allocation, and compensation need resolution before such a project can proceed. Immediate actions could involve securing state government land to close known illegal jetties, while private land issues would require acquisition and compensation processes.
He called for coordinated efforts between agencies and cross-border discussions with Thai authorities to tackle activities adversely impacting subsidies and public safety. From January 1 to the end of last month, KPDN seized various subsidised controlled goods worth RM375,185. These included major controlled goods like petrol, diesel, and cooking oil, which were smuggled to neighbouring countries and sold on the black market.
Azman reported that the seizures included petrol (75,929.44 litres), diesel (29,483 litres), and subsidised packet cooking oil (38,750 kilogrammes). The total value of seized goods, vehicles, and other contraband amounted to RM3.52 million from enforcement operations across the state between January and September 2025. During this period, 1,086 cases were taken under KPDN legislation, and 197 arrests were made involving both local individuals and foreigners.