Scrapped subsidies fuel shortage of cheap cooking oil in Malaysia

Smuggling, the scrapping of subsidies, and fertiliser and labour shortages are some factors fuelling a shortage of the cheapest cooking oil in Malaysia, the second-largest producer of palm oil in the world.

The government abolished subsidies for 1kg, 2kg, 3kg and 5kg bottled cooking oil on July 1 but kept them for 1kg polybag packets, which economists say has led to consumers scrambling to buy the cheaper product.