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The Malaysian Ministry of Domestic Trade and Cost of Living has confirmed the implementation of the Cooking Oil Price Control Mechanism to maintain ceiling prices for pure palm-based bottled cooking oil. Minister Datuk Armizan Mohd Ali stated that under this regulatory framework, governed by the Price Control and Anti-Profiteering Act, the government will enforce retail price caps at RM6.90 for 1kg, RM13.30 for 2kg, RM19.60 for 3kg, and RM30.90 for 5kg bottles.
Approved by the Cabinet on November 6, the mechanism responds to the sustained upward trajectory of global crude palm oil (CPO) prices since June 2025. According to the Minister, these market conditions have placed significant cost pressures on manufacturers, with some already halting production to avoid losses under the current price caps.
Calculations based on October's average global CPO price of RM4,400 per tonne suggest that without government intervention, the price of a 5kg bottle would have likely surged to RM34. To prevent supply disruptions and mitigate the burden on consumers, the government will provide approximately RM15 million per month in special incentives to manufacturers to ensure the continued supply of bottled oil at the stipulated rates.
Furthermore, Armizan addressed labor challenges within the restaurant subsector. While acknowledging requests from operators to facilitate foreign worker recruitment, he urged stakeholders, including the Malaysian Muslim Restaurant Owners Association (Presma), to submit research-driven proposals aimed at reducing long-term reliance on foreign labor. He emphasized that while the government understands the current difficulties, a serious commitment is required to transition the industry toward a more sustainable domestic workforce strategy.
Source: The Star