Government Takes Immediate Steps to Stabilize Supply of Bottled Cooking Oil

PUTRAJAYA, MALAYSIA 7 March 2025 – The Ministry of Domestic Trade and Cost of Living (KPDN) held a special briefing this morning with Prime Minister Dato’ Seri Anwar Ibrahim regarding the disruption in the supply of pure bottled palm cooking oil affecting the market. Also present at the briefing was the Second Finance Minister, Datuk Seri Amir Hamzah Azizan.

According to a statement today by the Minister of Domestic Trade and Cost of Living, Datuk Armizan Mohd Ali, the supply disruption has been identified as stemming from rising production costs due to a surge in global crude palm oil (CPO) prices, which have been climbing over the past two years.

Data shows that the average CPO price in January 2025 was recorded at RM4,672.50 per tonne, rising to RM4,759.00 in February 2025. The persistently high CPO prices have forced bottled cooking oil packaging companies to reduce production to manage costs, as they are bound by a maximum price control order.

“For instance, a 5-kilogram bottle of cooking oil is retailed at RM30.90, significantly lower than the global market price of RM36.16,” Armizan explained.

Following the briefing, the Prime Minister decided that immediate intervention measures must be implemented to stabilize the supply of bottled cooking oil in the market.

“Among the immediate actions announced is a proposal to provide special incentives to bottled cooking oil packaging companies. These incentives aim to ensure that these companies can ramp up production promptly to meet market demand,” Armizan said.

KPDN has been directed to engage further with the packaging companies to ensure production returns to sufficient levels. Additionally, enforcement efforts will be intensified to curb hoarding and misappropriation of cooking oil supplies at all levels.

“KPDN will ensure that today’s decisions are implemented immediately by the involved companies so that the production of bottled cooking oil can be increased without delay. We aim to stabilize the supply in the near term,” Armizan stated.

He also expressed gratitude to the Prime Minister and the Ministry of Finance for their swift action in considering the allocation of these special incentives. This step is seen as crucial to ensuring that the public continues to have adequate access to cooking oil supplies, particularly ahead of Ramadan and Syawal.