Malaysia’s food prices could rise by as much as 50% as the energy crisis linked to the Iran war drives up fuel costs, trade associations have warned.
Traders say the cost of raw materials used to prepare everyday staples, such as the popular nasi lemak (rice and meat served on pandan leaf with spicy chili paste) has already climbed sharply, leaving little room but to pass on the increases to consumers.
“Even before the fuel price increase, prices had already risen by around 20% to 30%,” said Rosli Sulaiman, president of the Federation of Malaysian Hawkers and Traders Associations, as reported by The New Straits Times.
“When costs are high and there are no profits in return, traders are forced to raise their selling prices, even with only a small margin. Those most affected are small traders, hawkers and the public.” he said.
Earlier last week, the Malaysian Muslim Restaurant Owners Association (Presma), which represents the country’s popular 24-hour eateries operated by the Indian-Muslim community, said it had already faced cost increases of up to 30% over the past year.
These hikes span raw ingredients such as chicken and vegetables, as well as plastic packaging and cooking gas.
“If these price pressures persist, a minimal adjustment in prices may be unavoidable,” Presma President Mosin Abdul Razak was quoted as saying by online news portal Free Malaysia Today.
Government data shows Malaysians spent more than MYR870 (US$216) a month dining out in 2024, a 17% increase from the previous year, reflecting a growing preference for eating out rather than cooking at home.
This spending accounted for more than 12% of the median monthly household income of MYR7,017.
Source: VN Express