KUALA LUMPUR, July 13 — The Dewan Rakyat today passed the Control of Padi and Rice (Amendment) Bill 2026 to strengthen enforcement, improve market regulation and protect the country’s paddy and rice supply chain.
The Bill was passed with a majority vote following debate by 23 government and opposition Members of Parliament.
Deputy Agriculture and Food Security Minister Datuk Chan Foong Hin said the amendments were aimed at strengthening the government’s ability to regulate the paddy and rice industry, particularly in terms of enforcement, market control and industry development.
“The amendment to Act 522 is by no means intended to suppress or place additional burdens on paddy farmers. Instead, it serves as a protective shield for them. Through the strengthening of this legislation, the government aims to ensure that no party takes advantage of the market by manipulating prices or supply in ways that could affect farmers’ income and rights.
“Safeguarding farmers’ rights and ensuring the sustainability of their livelihoods remain the Madani Government’s top priorities, which will not be compromised,” he said during his winding-up speech in Dewan Rakyat today.
He then said the Control of Padi and Rice Act 1994 (Act 522) remained the main legislative instrument used by the government to oversee the industry, but required updates to address current challenges.
Chan said the amendment would introduce stronger enforcement measures, including higher general penalties and specific penalties for certain offences, to deter irresponsible parties from manipulating the market.
He said the existing penalty rates had not been revised since the Act was introduced in 1994 and were no longer sufficient to reflect the severity of offences committed today.
Under the amendments, he explained the general penalty for individuals would be increased to a fine of up to RM230,000.
Chan said the government had also introduced specific penalties to ensure enforcement remained fair and would not impose excessive punishments for technical offences.
The specific penalties include a fine of up to RM15,000, imprisonment of up to six months, or both for offences such as failing to display licences, failing to renew licences within the required period, unclear price labels and failure to maintain daily records.
He added that higher general penalties would instead target more serious offences involving paddy and rice seizures, including operating without a licence, illegal possession, unauthorised sales, possession without permits and smuggling activities.
Chan then cited several cases to justify the need for tougher penalties, including a July 2025 seizure in Gerik, Perak involving 45 tonnes of rice worth about RM117,000, where the court imposed only a RM5,000 fine.
He also highlighted a January 2025 case in Kubang Pasu, Kedah involving 49 tonnes of rice worth about RM137,000, which resulted in a RM5,500 fine.
On rice self-sufficiency, Chan said Malaysia’s self-sufficiency ratio (SSR) stood at 52.9 per cent in 2024, still below the government’s target of 75 per cent by 2025 and 80 per cent by 2030 under the National Agrofood Policy 2021-2030.
He said the government acknowledged the challenge and would continue providing input and output subsidies, while focusing on increasing productivity in existing paddy granary areas, expanding large-scale farming management and introducing technology-based solutions.
Chan also addressed concerns regarding Sabah and Sarawak, saying the ministry was prepared to engage with the Sabah and Sarawak Padi and Rice Boards to strengthen food security and ensure the orderly development of the industry in both states.
He said the government would maintain flexibility in rice supply management, including allowing different approaches for Sabah, Sarawak and Labuan based on their respective market conditions.
On Bernas, Chan said the government recognised the company’s role as the sole rice importer under the existing concession agreement, which would expire in 2031.
He said Bernas was responsible for implementing 10 social obligations set by the government, valued at about RM3.2 billion throughout the concession period.
Chan added that the government intended to review the concession agreement before its expiry to ensure national food security, consumer interests and farmers’ welfare remained protected.
“I would like to emphasise that the ministry has conducted several engagement sessions to ensure these amendments are holistic and fair. Among them was an engagement session held on June 18, 2026, involving 137 industry players comprising representatives from wholesalers’ associations, retailers’ associations, consumer groups and industry representatives from across Malaysia, including Sabah and Sarawak.
“The process was carried out in an inclusive and comprehensive manner, taking into account the current developments within the industry as well as the needs of the public,” he added.
Chan then said the Control of Padi and Rice (Amendment) Bill 2026 was not merely a routine legislative amendment, but a reform effort aimed at strengthening the enforcement framework, curbing market manipulation, protecting the country’s staple food ecosystem, enhancing transparency in paddy and rice transactions, and ensuring long-term national food security.
