KUALA LUMPUR, Nov 11 — The government has approved a special incentive of about RM15 million a month under the Cooking Oil Price Control Mechanism (MKHMM) to maintain ceiling prices and ensure a stable supply of bottled pure palm cooking oil.

Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali said the decision, made at the Cabinet meeting on Nov 6, followed a surge in global crude palm oil (CPO) prices, which had significantly increased production costs for manufacturers.

“Through this mechanism, we can maintain the existing ceiling prices for 1kg, 2kg, 3kg and 5kg bottles, while providing special incentives to manufacturers producing bottled cooking oil,” he told a media conference held in conjunction with the 22nd Annual General Meeting of the Malaysian Muslim Restaurant Owners Association (PRESMA) here today.

He said based on the average global CPO price of RM4,400 per tonne in October 2026, the price of a 5kg bottle of cooking oil could have risen to RM34 without the intervention.

Under the mechanism, the ceiling prices of bottled pure palm cooking oil will remain at RM6.90 for 1kg, RM13.30 for 2kg, RM19.60 for 3kg and RM30.90 for 5kg, as stipulated under the Price Control and Anti-Profiteering Act 2011.

Armizan said the sustained increase in global CPO prices since June 2025 had placed mounting cost pressures on manufacturers, prompting some companies to halt production of bottled cooking oil.

He said the ministry (KPDN) had worked with the Finance Ministry and other relevant ministries to implement the mechanism as an intervention to ease cost-of-living pressures amid global market disruptions caused by the conflict in West Asia.

Meanwhile, PRESMA president Datuk Mohammed Mosin Abdul Razak said stable cooking oil prices would help restaurant operators better manage their business costs.

He also hoped the government would consider introducing targeted subsidies for restaurant operators in the future, similar to the assistance provided to manufacturers. — Bernama