Penalties for these offences under Section 5 (2) of the Film Censorship Act 2002 include fines of from RM 5,000 to RM 50,000 and up to six months in jail.
Additionally, charges under Section 292 of the Penal Code, which covers distributing or possessing pornography may be brought, could result in further fines and up to three months in prison upon conviction.
The moves come upon the heels of a recent sex scandal involving former Health Minister Datuk Seri Dr Chua Soi Lek.
"Currently, police investigations are underway to narrow down individuals or syndicates behind the distribution or possession of the VCDs," Datuk Mohd Johari Baharom, Internal Security Deputy Minister, said.
Three suspects are currently in police custody for distributing VCDs and DVDs featuring the former health minister.
According to Johari, individuals possessing illicit VCDs or DVDs should destroy them or surrender them to police.