Kota Kinabalu: The Domestic Trade and Cost of Living Ministry (KPDN) will launch Ops Kesan 4.0 starting today (July 1), to monitor and prevent unjustified increases in the prices of goods and services following adjustments to the Sales and Service Tax (SST).
Its Minister Datuk Armizan Mohd Ali said the nationwide operation would be carried out under the Price Control and Anti-Profiteering Act 2011 (Act 723) and will target businesses attempting to exploit the SST revision for excessive profit.
“The objective of Ops Kesan 4.0 is to ensure that no party takes advantage of the SST adjustments by increasing prices without basis. Any movement in prices must be reasonable and justifiable,” he said during a press conference at the Sabah International Convention Centre (SICC), Monday.
The operation will focus on three main areas: monitoring price movements, enforcing the law through written notices under Section 21 of the Act, and increasing compliance among traders along the supply and distribution chains.
The Ministry will use four main sources to guide its enforcement: data from companies registered with the Royal Malaysian Customs Department, internal daily price alerts monitored by KPDN, public complaints, and market intelligence gathered by KPDN’s enforcement teams.
“Ops Kesan is not new. We have previously implemented it under different circumstances, such as the targeted diesel subsidy and public sector wage adjustments,” said Armizan, referencing earlier versions 2.0 and 3.0.
He assured that prior to enforcement, KPDN already gathered baseline price data and strengthened collaboration with key agencies, including the Customs Department and the Ministry of Finance. Standard operating procedures have also been outlined to manage complaints efficiently.
Armizan stressed that not all goods and services are affected by the SST revision.
“If a good or service is not listed under the revised SST scope or has been exempted, there is no basis to increase prices due to SST,” he said.
He also warned companies with annual revenue below RM1 million not to use SST as a justification for price hikes, as the threshold only applies to registered companies.
Armizan added that some businesses that only registered for SST after July 1 but immediately raised prices would be investigated for non-compliance. Price increases must be both timely and legally justified, not opportunistic.
KPDN will also evaluate whether a price movement falls within the legal bounds of Act 723, using a set formula and data to assess whether an increase is reasonable or considered profiteering. Traders are encouraged to consult KPDN for clarification before adjusting prices.
He warned that individuals found guilty of profiteering can face a fine of up to RM100,000, three years’ imprisonment, or both. Companies can be fined up to RM500,000.
“We will not tolerate any form of exploitation. This is about protecting the rakyat from unreasonable costs,” he added.
