Govt proposes fines up to RM1mil for rice industry abuses

PETALING JAYA: The government wants to increase the fine for any misconduct or abuse in the country’s padi and rice industry up to RM1 million.

Deputy agriculture and food security minister Chan Foong Hin tabled the Control of Padi and Rice (Amendment) Bill 2026 in the Dewan Rakyat today to impose the heavier penalties, Bernama reported.

He 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 also proposes amendments to Section 22 of Act 522 by increasing general fines for offences where specific penalties are not provided for 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 was quoted as saying when tabling the bill for its second reading.

He added that the Cabinet agreed to the amendments in a meeting last December.

Chan said the proposed amendments would also include expanding 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.

Chan added that key engagement sessions were held with all relevant stakeholders including rice millers, wholesalers, retailers and consumers from across the country, including Sabah and Sarawak, to ensure the amendments are holistic and fair.