THE Ministry of Domestic Trade and Cost of Living (KPDN) briefed Prime Minister Datuk Seri Anwar Ibrahim this morning on the ongoing disruption to the supply of bottled pure palm oil in the Malaysian market.
The main cause of the supply disruption is the significant rise in production costs due to the surge in global crude palm oil (CPO) prices, which have increased sharply over the past two years, the ministry said in a statement today.
KPDN highlighted in the first two months of 2025, the average price of CPO stood at RM4,672.50 in January and RM4,759.00 in February.
“As a result of these high and persistent CPO prices, palm oil packaging companies have been forced to reduce production in order to control costs, as they are constrained by the maximum price control order on bottled oil.
“For example, this regulation mandates that the retail price of a 5-kilogram bottle of palm oil be sold at RM30.90, while the market price based on CPO rates stands at RM36.16, the ministry said.
One of the key intervention strategies includes considering special incentives for palm oil packaging companies to encourage them to ramp up production and meet market demand promptly.
In line with this, KPDN has been directed to follow up on this decision by instructing oil packaging companies to restore production rates to meet current needs.
At the same time, the ministry is intensifying enforcement efforts to prevent hoarding and any other forms of misappropriation of cooking oil supplies.
The ministry has emphasised that the decisions made today must be immediately implemented to ensure that companies involved increase their production rates of bottled palm oil without delay, aiming to restore stability in the market in the near future.
These factors were decided upon following a special briefing with the Prime Minister which called for immediate intervention measures to stabilize the supply of bottled palm oil.
The ministry expressed its appreciation for the swift response from Prime Minister Datuk Seri Anwar Ibrahim and the Ministry of Finance II, who are considering immediate special incentive allocations for palm oil packaging companies.
“This move is to ensure the public has a steady and reliable supply of bottled cooking oil, particularly during the upcoming Ramadan and Syawal months,” it said
The briefing was attended by Datuk Seri Amir Hamzah Azizan, the Deputy Minister of Finance II.
Minister of Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali expressed his gratitude for the proactive measures taken to ensure that the public’s needs for essential supplies are met promptly. – March 7, 2025
