From June 6, 2018, the Ministry of Domestic Trade and Cost of Living has enforced the Price Control and Anti-Profiteering (Mechanism for Determining Unreasonably High Profits) Regulations 2018 to act against profiteering activities. This regulation replaces the Price Control and Anti-Profitability (Mechanism for Determining Unreasonably High Profits for Goods) Regulations 2016.

This rule uses a mark up or margin percentage calculation method on each first day of the financial year or business calendar year as a basic profit determination. The percentage is based on the mark up percentage or margin percentage on the first day of the previous year and the difference trend of the mark up percentage or margin percentage for the previous 3 years.

The determination of profitability (unreasonably high profits) is made using the measurement of one financial year or business calendar year. Profitability occurs when the mark up percentage or margin percentage of the current year exceeds the base profit percentage of the year in question.

This rule does not set the rate of profit of traded or sold goods. Nevertheless, the Ministry has a basis through the mechanism in this Regulation to ensure that the profits determined or obtained by traders for certain goods are reasonable based on past business information data.

Any party who commits the offense of making unreasonably high profits will be prosecuted under the Price Control and Anti-Profiteering Act 2011 for profiteering. If convicted, for individuals, a fine of RM100,000 or three years in prison or both will be imposed for the first offense while for the second and subsequent offenses a fine of RM250,000 or five years in prison or both will be imposed, while for organizations The corporation or company will be fined RM500,000 for the first offense while a fine of RM1 million for the second or subsequent offences.

Any complaints regarding prices and profiteering can be channeled to this Ministry through:

Anti-Profiteering Unit
Enforcement Section
Ministry of Domestic Trade and Cost Of Living