KUALA LUMPUR: The public can breathe a sigh of relief. The government has chosen to absorb RM15 million a month to ensure bottled cooking oil prices do not rise, even though world Crude Palm Oil (CPO) prices have surged since June 2025.
Bottled cooking oil prices remain at RM6.90 (1kg), RM13.30 (2kg), RM19.60 (3kg) and RM30.90 (5kg) through the Cooking Oil Price Control Mechanism (MKHMM) approved by the Cabinet on 6 November under the Price Control and Anti-Profiteering Act 2011.
Domestic Trade and Cost of Living Minister, Datuk Armizan Mohd Ali, said the intervention involves a government allocation of RM15 million a month in the form of special incentives for manufacturers to ensure the supply of bottled cooking oil remains stable in the market.
“This decision was made after taking into account the upward trend in world CPO prices since June 2025, which has put high cost pressure on the manufacturing industry, to the point that some companies have stopped production.
“Based on the average world CPO price of RM4,400 per tonne last October, the price of 5kg bottled cooking oil was estimated to potentially soar to RM34.00 if the government had not intervened,” he said in a KPDN media statement.
He stressed that the initiative is in line with the government’s commitment to addressing the impact of rising global supply prices due to geopolitical conflict in West Asia, similar to the approach of increasing RON95 petrol and diesel subsidies.
Armizan also touched on the issue of labour shortage in the restaurant sub-sector and said the Ministry of Human Resources (KESUMA) is processing applications based on the ceiling quota of 15,000 foreign workers announced on 5 August.
However, he said the government remains committed to reducing dependence on foreign labour in stages in line with the Thirteenth Malaysia Plan (RMK13) target of limiting foreign workers to 10 per cent by 2030.
In this regard, he called on stakeholders such as the Malaysian Muslim Restaurant Owners Association (PRESMA) to submit data-based proposals to reduce foreign workers in order to maintain a fair wage structure and increase the income of local people.
