Oil Syndicates Exploit Private Land As Conduit To Smuggle

KOTA BHARU, Oct 18 (Bernama) -- 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.

He said landowners often give the excuse of using it for agriculture or flood clean-up work but the area is actually used for illegal operations.

"I can say that the landowner only rents out the area, the operations are handled by other parties such as supervisors, transporters, watchmen and payment collectors.

He said each individual will be paid a fee according to the role in the successful oil smuggling transaction.

Azman said subsidised fuel oil brought to Thailand is sold by weight (kilogramme) not litre like in Malaysia and the price structure changes according to market demand there.

"Previously, a three-litre drum was sold at around RM31, now the delivery is at about RM2.60 per litre but buyers over there are becoming more cautious because their market is also affected," he said.

Apart from the economic loss to the country's subsidies, he said the activity also raises security issues.

"Operations in the river border zone make enforcement actions difficult because smugglers can easily escape into Thai waters.

"There have been shootings from smugglers when Malaysian authorities approached a situation that put personnel at risk because the border is only a few metres and night visibility is quite limited," he said.

He also explained the technical constraints on the ground, the neighbouring country's side of the water is seen to be more organised with riverbank infrastructure while the Malaysian side often lacks lighting and control.

"Surveillance technology alone is not enough. The risk is higher at night with no lights, limited visibility and various possibilities can occur when smugglers act aggressively to escape," he said.

Meanwhile, touching on the proposal by Kelantan police chief Datuk Mohd Yusoff Mamat regarding the construction of a security wall on the Kelantan-Thailand border to curb illegal smugglers, Azman supported Mohd Yusoff's suggestion that the construction of a fence or border wall be considered in selected areas.

However, he reminded that main issues including land ownership, budget allocation for land acquisition and compensation to owners need to be resolved.

“The natural boundary is the river, we need to determine where the wall or fence is placed. For immediate action, state government land located in several locations can be taken first to close known illegal jetties, while the issue of private land requires acquisition and compensation process,” he said.

Azman called for coordination between agencies as well as cross-border discussions with Thai authorities to curb activities that not only affect subsidies but also public safety.

Meanwhile, KPDN seized various subsidised controlled goods worth RM375,185, for the period from Jan 1 to the end of last month.

Azman said the amount included major controlled goods under the Control of Supplies Act 1961 such as petrol, diesel and cooking oil which were diverted by smuggling to neighbouring countries and sold on the black market.

According to him, among the seizures included petrol (75,929.44 litres), diesel (29,483 litres) and subsidised packet cooking oil (38,750 kilogrammes).

"The total seizure including vehicles and other contraband goods amounted to RM3.52 million as a result of various enforcement operations throughout the state from January to September 2025.

During the same period, a total of 1,086 cases were taken under the KPDN legislation while 197 arrests were also made involving local individuals and foreigners.

-- BERNAMA