Price Control and Anti-Profiteering Enforcement

Starting from 1st January 2017, the Ministry of Domestic Trade and Consumer Affairs has enforced the Price Control and Anti-Profiteering (Mechanism to Determine Unreasonably High Profit for Goods) Regulations 2016 to act upon the profiteering activity. This Regulations revokes the earlier Price Control and Anti-Profiteering (Mechanism to Determine Unreasonably High Profit for Goods) (Net Profit Margin) Regulations 2014 that came into effect until 31st December 2016.

This Regulations applies the mark-up percentage calculation mechanism or margin percentage mechanism on each first day of financial year or calendar year of business as the determinant of basic profit. The percentage is based on the mark-up percentage or margin percentage on the first day of the previous year and the trend difference of mark-up percentage or margin percentage for the period of previous 3 years.

The determinant of profiteering (unreasonably high profit) is formulated using the measurement of one financial year period or calendar year period of business. The profiteering occurs when the mark-up percentage or margin percentage of the current year exceeds the percentage of basic profit for that year.   

This Regulations does not set the profit rate of the goods traded or sold. However, the Ministry has the basis through mechanism in this Regulations in ensuring that the profit set or gained by the sellers for such goods is reasonable based on the previous company information data.

The Ministry started the enforcement and exercise of the Regulations for 2 categories of goods which are foods and beverages as well as household goods. The household goods comprise of non-durable goods including personal-care products. Priority is given to these goods as it gives direct impact on the household expenses and the cost of living of the people. However, the Ministry will expand the enforcement of this Regulations into other goods and services according to the need and suitability. This Regulations is enforced upon all levels of business for goods that are included in the scope of regulation exercise.

The transition period of 5 months started from 1st January 2017 and ended on 31st May 2017 was given to the sellers for compliance preparation to this Regulations. The Ministry is implementing the advocacy programme to provide clarification and explanation to the stakeholders especially the sellers that are subjected to the enforcement to enhance the knowledge and awareness towards the compliance of this Regulation.

Any person who commits an offense of taking unreasonably high profit shall be taken into action under Price Control and Anti-Profiteering Act 2011 for profiteering. If convicted, for individuals, such person is liable to a fine not exceeding RM100,000 or to imprisonment for a term not exceeding 3 years or to both for first offence and, for a second or subsequent offence, to a fine not exceeding RM250,000 or imprisonment for a term not exceeding 5 years or to both, whereas for Body corporate, such person is liable to a fine not exceeding RM500,000 for first offence and, for second or subsequent offence, to a fine not exceeding RM1.0 million

Any complaints regarding the price and profiteering can be directed to the Ministry through:

  • Hotline 03-8000 8000 1Malaysia One Call Centre (1MOCC);
  • Toll-Free Line Pusat Informasi dan Gerakan Operasi Strategik (PIGOS) 1-800-886-800;
  • Smartphone Application Ez ADU;
  • E-mail to this address e-aduan@kpdnkk.gov.my;
  • SMS to 15888  by typing “KPDNHEP ADUAN <butiran aduan>”; <details of the complaint>”; and
  • Report/Present to any KPDNHEP offices across the country.

Anti-Profiteering Unit
Enforcement Section
Ministry of Domestic Trade and Consumer Affairs