Malaysia proposes higher fines of up to RM1 million for corporations to curb misconduct in the padi and rice industry.
KUALA LUMPUR: The government has proposed heavier penalties, including increasing fines of up to RM1 million, to curb misconduct in the country’s padi and rice industry through the Control of Padi and Rice (Amendment) Bill 2026.
Deputy Agriculture and Food Security Minister Datuk Chan Foong Hin said the amendments were proposed following changes in the industry landscape, market dynamics and current developments, which require the Control of Padi and Rice Act 1994 (Act 522) to be strengthened to ensure it remains relevant, dynamic and effective in regulating the industry.
The Bill proposes amendments to Section 22 of Act 522 by increasing general fines for offences where specific penalties are not provided under the existing Act, as the current fines are no longer sufficient to serve as an effective deterrent against large-scale misconduct.
“For individuals, the proposed fine is increased from a maximum of RM15,000 to RM250,000 for the first offence, while for the second or subsequent offence, it is increased from RM25,000 to RM500,000.
“For corporations, the proposed fine is increased from a maximum of RM25,000 to RM500,000 for the first offence, while repeat offences will carry a fine of up to RM1 million,” he said when tabling the Bill for its second reading in the Dewan Rakyat today.
Chan said proposed amendments would also be made to Section 29 of Act 522 to expand the minister’s powers in formulating more comprehensive regulations.
These include matters relating to padi buyer licensing, rice grading and price controls according to grades, as well as the control, prohibition or regulation of the physical movement of padi and rice to curb hoarding and smuggling activities.
“The amendments also provide that violations of any prescribed regulations may be made an offence punishable by a fine not exceeding RM15,000 or imprisonment of up to six months, or both,” he said.
He said the Cabinet agreed on Dec 10, 2025 for Act 522 to be amended to ensure that the regulatory mechanism for the padi and rice industry remains effective and meets current requirements.
Chan said the Ministry of Agriculture and Food Security (KPKM) carried out the amendment process inclusively through various engagement sessions with industry players, consumer associations and Members of Parliament, in addition to undergoing the Regulatory Impact Analysis (RIA) process under the Malaysia Productivity Corporation (MPC).
He said the MPC also stipulated that a post-implementation review be carried out within two years after the Act comes into force.
He added that among the key engagement sessions was one held on June 18, which brought together 137 industry representatives comprising associations of millers, wholesalers, retailers and consumers from across the country, including Sabah and Sarawak, to ensure the amendments are holistic and fair.
