KUALA LUMPUR, July 13 — The Dewan Rakyat passed the Control of Padi and Rice (Amendment) Bill 2026 today, aimed at strengthening Malaysia’s food security ecosystem while enhancing regulatory oversight of the rice industry.
The Bill was approved by a majority voice vote after being debated by the lawmakers from both the government and Opposition blocs.
Among the key amendments is Section 22 of the principal Act (Act 522), which raises the general penalty to a fine of up to RM250,000 for individuals, while companies and corporate bodies may be fined up to RM1 million.
Winding up the debate, Agriculture and Food Security Deputy Minister Datuk Chan Foong Hin said the higher penalties were necessary as the existing fines had never been reviewed since the Act was introduced in 1994.
Official enforcement data showed that the value of seizures involving rice smuggling and the misappropriation of local white rice was substantial, yet previous punishments were not commensurate with the offences due to the low penalty ceiling.
“The existing penalties are no longer proportionate to the huge profits reaped by irresponsible parties in the multi-billion-ringgit padi and rice industry. The increase is intended to ensure that punishments reflect the seriousness of the offences,” he said.
Chan added that the amendments would also serve as a safeguard to protect the livelihoods of padi farmers from market manipulation.
Meanwhile, the increased fines of up to RM1 million to curb misconduct in the padi and rice industry was among the key issues raised during the debate.
Bagan Serai MP Datuk Idris Ahmad suggested that enforcement be supported by clear prosecution guidelines to better protect the country's food supply chain, and specialised training be provided to prosecutors to ensure appropriate sentences are sought in court.
Meanwhile, Bakri MP Tan Hong Pin urged the ministry to review the proposed penalty rates and proposed the establishment of an independent committee to periodically assess the performance of Padiberas Nasional Berhad in addressing cartel-related issues comprehensively.
Shah Alam MP Azli Yusof emphasised the importance of implementing a comprehensive digital traceability system throughout the padi and rice supply chain to curb leakages and supply disruptions, while Tenggara MP Manndzri Nasib suggested that every bag of rice be fitted with a quick-response code to enable consumers and enforcement authorities to track stock movement in real time, making it easier to detect mislabelling and hoarding.
The Dewan Rakyat sitting resumes tomorrow.
