KUALA LUMPUR, Nov 11 – The Malaysian government has approved a special monthly incentive of approximately RM15 million under the Cooking Oil Price Control Mechanism (MKHMM) to stabilize supply and maintain existing retail ceiling prices for bottled pure palm cooking oil.
Domestic Trade and Cost of Living Minister Datuk Armizan Mohd Ali announced the intervention on Wednesday, November 11, 2026, during a media conference at the 22nd Annual General Meeting of the Malaysian Muslim Restaurant Owners Association (PRESMA) in Kuala Lumpur.
Armizan revealed that the decision was finalized during the Cabinet meeting on November 6 following sharp increases in global Crude Palm Oil (CPO) prices, which significantly pushed up manufacturing costs.
Based on October 2026 global CPO prices averaging RM4,400 per tonne, retail prices for a 5kg bottle of palm cooking oil could have surged to RM34 without government intervention.
Under the MKHMM framework, official retail ceiling prices enforced under the Price Control and Anti-Profiteering Act 2011 remain fixed:
- 1kg Bottle: RM6.90
- 2kg Bottle: RM13.30
- 3kg Bottle: RM19.60
- 5kg Bottle: RM30.90
Armizan noted that persistent CPO price increases since June 2025 had created severe operational cost pressures, leading several packaging manufacturers to halt production. The Ministry of Domestic Trade and Cost of Living (KPDN) collaborated with the Finance Ministry and related agencies to structure the special incentive to mitigate cost-of-living impacts stemming from West Asian geopolitical conflicts.
Welcoming the decision, PRESMA President Datuk Mohammed Mosin Abdul Razak stated that price stability enables restaurant operators to manage operational overheads effectively, while expressing hope that targeted subsidies could eventually be extended to food service operators.
Incentive Breakdown, Ceiling Price Limits, and CPO Market Context
Key financial incentives, regulated ceiling prices, and market parameters include:
- Approved Special Subsidy: ~RM15 million monthly to manufacturers under the Cooking Oil Price Control Mechanism (MKHMM).
- Cabinet Approval Date: Friday, November 6, 2026 (Announced Nov 11).
- Fixed Statutory Ceiling Prices: 1kg (RM6.90), 2kg (RM13.30), 3kg (RM19.60), 5kg (RM30.90).
- Unsubsidized 5kg Price Impact: Projected to reach RM34 based on October CPO average of RM4,400 per tonne.
- Primary Market Catalyst: Sustained global CPO price rallies since June 2025 exacerbated by West Asian regional conflicts.
–NMT
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