# How Malaysia Controls Price Profiteering: The Anti-Profiteering Act and Op Catut

> The Price Control and Anti-Profiteering Act 2011 makes excessive profit a criminal offence, and since 2018 it covers all goods and services. KPDN measures 'unreasonably high' profit at the same premises, not against other shops.

- Category: cost-of-living
- Language: en
- Status: published
- Updated: 2026-08-08
- Canonical: https://negaraku.md/en/cost-of-living/price-control-anti-profiteering-act

---

Raising prices because costs went up is one thing. Raising prices merely to rake in a bigger profit than last year — that can land you in court in Malaysia.

This is the heart of the Price Control and Anti-Profiteering Act 2011 (Act 723). Many assume this law is only about "controlled" goods like sugar or chicken. In reality it is far broader: since 2018, the act covers **all goods and services**.

## What does "excessive profit" mean?

The core offence lies in Section 14: it is unlawful for any person to make an unreasonably high profit by selling or supplying any goods or services.

The key point is that "excessive" does not mean "expensive". Under the act's framework, profit is deemed excessive when **a trader's margin or markup percentage exceeds the percentage at the start of the financial or calendar year**. In other words, the measure is your profit percentage today compared with the starting point of your own year.

## How KPDN calculates it, and what is not compared

The most important thing for traders to understand: KPDN assesses the price and cost structure **at your own premises**, not by comparing your shop with the competitor across the street. A shop in an upscale area and a stall in a small town are each assessed against their respective base years.

The 2018 mechanism regulations introduced a formula that takes into account, among other things:

| Factor | Example |
| --- | --- |
| Imposition of taxes | Changes in the SST rate |
| Supplier costs | Raw material prices, import costs |
| Supply and demand | Seasonal supply shortages |
| Geographical / market factors | Logistics costs to remote areas |
| Other relevant matters | Conditions specific to the product market |

The bottom line: if your costs rise and you raise prices proportionally, your percentage margin stays the same — and you are safe. Problems arise when that percentage margin **widens** beyond your base year.

## What are the penalties?

This is not merely a warning. The fines can be steep:

- **Individuals:** up to RM100,000 and/or 3 years' imprisonment for a first offence; up to RM250,000 and/or 5 years for a subsequent offence.
- **Corporate bodies (companies):** up to RM500,000 for a first offence; up to RM1 million for a subsequent offence.

## Op Catut and Ops Kesan: two different operations

KPDN does not just wait for complaints — it conducts periodic enforcement operations. Two that are often mentioned are Op Catut and Ops Kesan, but the two are not the same thing.

**Op Catut** is an anti-profiteering operation that inspects the entire supply chain — from producers, importers and suppliers to wholesalers and retailers. For example, under Ops Catut 2023, KPDN issued **1,149 notices** to obtain information on the prices and costs of goods between 1 January and 30 June 2023.

**Ops Kesan**, on the other hand, focuses on the impact of policy changes on prices — for instance after subsidy adjustments or public service remuneration reforms. According to a report in April 2026, under Ops Kesan 4.0 and 5.0, the authorities opened **1,443 investigation papers** related to anti-profiteering inspections and issued **RM142,200 in compounds**.

KPDN also introduced a digital Anti-Profiteering Calculator to help traders calculate a lawful margin and to allow consumers to check price transparency.

## What's next

If you are a trader, keep records of your costs and prices at the start of each financial year — that is the base year that will be used to assess you. If you are a consumer who suspects profiteering, a complaint can be made to KPDN. For more context on the taxes that affect prices, see our related article on SST.

## Sources

- My Say: Key rules for businesses to know about the law on profiteering — https://theedgemalaysia.com/node/722450 (The Edge Malaysia)
- Ops Catut 2023: KPDN Issues 1,149 Notices — https://www.bernama.com/en/general/news.php?id=2210744 (Bernama)
- KPDN records enforcement gains as govt tightens control over subsidy leakages and price stability — https://www.thevibes.com/articles/news/122224/kpdn-records-enforcement-gains-as-govt-tightens-control-over-subsidy-leakages-and-price-stability (The Vibes)

---
Source of truth: https://github.com/negaraku-md/NegaraKu.md
License: CC BY-SA 4.0