Malaysians selling meals below $2 find it harder to stay sustainable

KUALA LUMPUR – At 3am, while most of Kuala Lumpur was still asleep, Ms Zainab Dali was already busy in her kitchen in Kampung Datuk Keramat in the heart of the capital city.

By 5.30am, the 55-year-old had made her way to a vending machine in Ampang Park MRT station, a 10-minute walk from the Petronas Twin Towers. There, she loaded trays of food into the machine – fried rice, spaghetti aglio e olio, macaroni and kuih – all affordably priced between RM3 and RM5 (S$1 and S$1.60).

The former hotel chef is among the few who continue to offer RM5 meals under government initiatives aimed at ensuring that lower-income communities have access to affordable food.

But three years into running her vending operation, Ms Zainab said the margins are tight and rising costs have forced her to make some adjustments to her meals.

“Before, I could include whole chicken pieces. Now, I use fillets as they are cheaper. You have to be smart. I usually look for supermarket offers,” she told The Straits Times.

Profit margins are tight at about 20 per cent for food, offset by higher margins for bottled mineral water. Despite collecting around RM10,000 monthly with a profit of RM7,000 to RM8,000, she is worried about the future.

Government support currently subsidises her vending machine and rental space, but with her two-year contract set to expire at the end of May, costs could jump significantly.

Ms Zainab’s business is part of the Economy Ministry’s programme known as the People’s Income Initiative, which enables participants to sell affordable food through vending machines at a ceiling price of RM5. It aims to raise the earnings of the bottom 40 per cent of households, also called the B40 group.

“If the rent and machine fees increase, I am not sure I can continue,” she said.

Like many vendors, she is feeling the impact of global energy and supply shocks.

Another government initiative aimed at supporting lower-income communities is the Rahmah Menu, which helps ensure access to affordable meals. The programme has lost four in five of its operators since 2023, raising questions about its future.

Today, these RM5 meals are harder to find, even as many urbanites are looking for affordable options as costs rise, precipitated by the energy crisis after the US-Israeli attack on Iran.

Rising costs squeeze out RM5 meals

Rahmah Menu, which means “compassionate menu” in Malay, was introduced in 2023 as a lifeline for low-income groups. The initiative quickly took off with some 15,000 food outlets, from Indian-Muslim restaurants, known locally as “mamak” eateries, to major chains offering budget meals to help Malaysians cope with the rising cost of living.

By October 2025, just 3,141 operators were still offering such meals, said Deputy Domestic Trade and Cost of Living Minister Fuziah Salleh.

For many small operators, sustaining RM5 meals has become increasingly difficult as food and energy prices have climbed.

In comparison, a roadside stall burger currently costs at least RM5, rising to RM6 with an egg, while a plate of mixed rice at a stall can now cost around RM10 to RM15. Dining out on a simple meal can quickly cost RM20 or more.

Compounding the situation, the initiative lost its chief architect early on. The then Domestic Trade and Cost of Living Minister Salahuddin Ayub, who championed the initiative, died in July 2023, less than half a year after its roll-out.

Some large chains have managed to sustain the initiative by absorbing the increased costs.

Mydin Mohamed Holdings managing director Ameer Ali Mydin said the company remains committed to serving its Rahmah Menu meals, which typically consist of a plate of rice, chicken or fish, vegetables and a glass of iced tea.

“There are no changes to our objective of serving RM5 meals, even with cost pressures. This is about helping the community, especially the B40 group,” Datuk Ameer told ST.

Fast-food chain KFC also continues to serve a RM5 set, consisting of a piece of chicken, a bun and a bottle of mineral water.

Thin margins, steady demand

Smaller outlets, however, face tighter constraints.

One new outlet that has started offering meals below RM5 is Kesum, a social enterprise founded by former economy minister Rafizi Ramli. There, a plate of nasi lemak with “berempah” or spiced fried chicken sells for RM4.90, while fried noodles can be as cheap as RM3.90.

Supervisor and cook Izzan Ilham said Kesum’s focus is on affordability. Despite this, the outlet still manages to meet some diners’ expectations on taste.

“It is not about whether the food is nice or not, the price is the main thing. But customers tell us the food is nice,” he told ST.

Kesum serves between 200 and 300 customers daily, with dishes like the nasi lemak, curry noodles or nasi minyak with ayam masak merah – ghee rice and chicken with a spicy tomato-based gravy – among its bestsellers. Drinks are priced as low as RM1.20.

“In this economy, people need food at this price every day. We have many regulars who come for breakfast, lunch, and before we close at 8pm,” said Mr Izzan.

Margins, however, are razor-thin. “The profit is very small, but we can still survive,” he added.

Since Hari Raya Aidilfitri in March, he noted that customer numbers have grown, which could reflect tightening household budgets.

The struggles of the operators selling cheap meals are part of a broader pattern flagged by an April 2026 report by policy think-tank Khazanah Research Institute. The report warned that global crises from pandemics to wars and energy disruptions have exposed structural weaknesses in Malaysia’s economy.

“Rising costs of energy and logistics affect both firms and households, with lower-income groups facing the greatest pressure due to already stagnant wages and high living costs,” said the report.

The bottom 70 per cent of households struggle to keep up with rising living costs, while wage growth has stagnated. The report cited Malaysian central bank data showing that real wages for the bottom 50 per cent households grew by merely around RM56 annually between 2010 and 2019.

Homemaker Norlisa Ayub, 34, dined at Kesum for the first time in early May after seeing it in a TikTok post.

“The food is good and affordable. It is hard to find prices like this any more,” she said, adding that she would return.

She has also felt the impact of rising costs when buying items for her home-baking business. “Cocoa powder used to be RM20-plus per kg, now it’s RM40. Butter went up from around RM10 to RM16.90,” she said.

Another Kesum diner, lorry driver Din Ali, 40, summed up the dilemma facing many Malaysians: “People want cheap and tasty food. The economy now is not good, we can’t control it. Even nasi lemak sold by the roadside is RM7 now.”

He added: “I think Kesum should open up in other places. The food is good. It’s a nice-looking place, and it’s air-conditioned, too.”

Back in the Ampang Park MRT station, Ms Zainab said she sees her work as a modest but meaningful contribution to the community.

“For me, it is more like charity. I don’t make a big profit, just enough to survive. But people still depend on it, so I will try to continue for as long as I can,” she said.