Malaysia maintains cooking oil subsidies, plans targeted mechanism
The Malaysian government has confirmed that it will not increase the price of subsidised cooking oil, despite the ongoing economic challenges faced by the country. Domestic Trade and Cost of Living Minister Salahuddin Ayub stated that the government will instead introduce a targeted subsidy mechanism once the Central Database Hub (PADU) system is fully operational. The decision comes as many Malaysians continue to struggle with rising living costs.
Salahuddin Ayub explained that the government will initiate targeted subsidies for the people because the government spends a significant amount on subsidies for cooking oil, RON95 petrol, and other essential goods. He added that the current subsidies will be maintained for the sake of the people, and when the economy recovers, a perfect ecosystem will be re-established with targeted subsidies to save on expenditure. This statement was made during the Minister’s Question Time at the Dewan Rakyat sitting.
In response to a question about the high demand for used cooking oil for biofuel, Salahuddin said it has the potential to be an economic resource, especially for housewives and micro, small, and medium enterprises. He revealed that preliminary discussions had been held with Petronas, which could act as a government agency to assist the industry in achieving economies of scale, thereby increasing the income of the country and the people involved.
Regarding used cooking oil, Salahuddin informed that the Ministry of Plantation Industries and Commodities is responsible for issuing licences to used cooking oil collection companies. He also mentioned that, to date, no major case involving the reprocessing of used cooking oil and its sale at a cheap price has been brought to court. This was in response to a question about the control of licensed companies that collect used cooking oil following allegations that some companies mix used cooking oil with non-halal used cooking oil before reselling it at a low price.
