Food operators turning to ‘unlicensed’ online traders


Ceiling price for hawker fare sold by hawkers at food courts under MBPP in George Town, Penang. ( June 1, 2024.) ¡ªCHAN BOON KAI/The Star

PETALING JAYA: Some food operators are turning to online traders, believed to be unlicensed, on ecommerce sites for essential cooking ingredients – namely rice and packaged cooking oil – to deal with rising costs of doing business.

The move has led to concerns of shortages as this is seen as traders “infringing” into consumers’ supply of subsidised items.

Federation of Malaysian Consumers Association (Fomca) chief executive officer Saravanan Thambirajah said online sales of such items if not controlled could lead to shortages.

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“We hope that the relevant ministry takes action to curb this problem so that the sale of controlled items can be monitored.

“There must be a limit on purchases,” he added.

Thambirajah said while enforcement was important, ecommerce platforms have to monitor the sale of controlled goods on their sites.

Bumiputra Retailers Organisation Malaysia president Datuk Ameer Ali Mydin said ecommerce platforms should also play a role in monitoring products sold on their platform.

“There should be no problem for retailers to sell their products whether online or offline, as long as the rules are followed. The onus is on the sellers to make sure they are licensed to do so.

“At the same time, ecommerce platforms should also be controlled and online marketplaces must be responsible,” said the Mydin managing director.

Checks by The Star on some ecommerce sites and a social media marketplace platform found several shops offering subsidised packaged cooking oil and local rice.

The sale of these items online has lured buyers, especially traders, to buy them at cheaper prices.

Petty Traders and Hawkers Association president Datuk Rosli Sulaiman said his members complained that they had to fork out more than the price offered online.

“The members said that retailers would claim the stock had finished and instead offer a slightly higher priced product,” he said.

Rosli said the association’s members were left with no option but to pay the price as they were in need of cooking oil.

Pertubuhan Sahabat Tomyam Prihatin SeMalaysia adviser Che Mamad Che Mod has warned its members against any advertisements online that seem “too good to be true”.

“We understand that the cost of most materials is increasing.

“But as business operators, be careful not to fall into such traps,” he said.

On July 3, the Domestic Trade and Cost of Living Ministry said that packaged cooking oil sales scams were taking place on social media and ecommerce sites where packaged cooking oil were being offered at cheaper than market prices.

It said the scammers were believed to have enticed victims through misleading advertisements on social media and ecommerce platforms.

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