Recent reports that cooking oil around Malaysia are facing shortages have raised many concerns. According to the Sundry Goods Merchants’ Association, the smaller retailers like sundry shops and convenient stores are worried that if manufacturers do not increase their production, the situation would worsen. In fact, it is a valid reason to worry with the holiday season coming up and Chinese New Year approaching in January 2012.

According to Lean Hing Chuan, the president of the association, contrary to some who shrug off the situation as a rumour, it is actually more serious than it seems. If cooking oil is facing shortage, it would have a chain reaction where price of food will increase as well as other related businesses. This surely will not be a favourable situation especially if people are gearing up for the holidays.

The Ministry of Domestic Trade, Cooperatives and Consumerism has also been informed to actually get to the bottom of the issue where Datuk Tan Lian Hoe, the Deputy Minister should actually conduct random checks on the stock of cooking oil in hypermarkets. In most cases, the hypermarkets and bigger players would surely have stock and this would affect the smaller players.

Some have even claimed that cooking oil shortage have become quite an ‘annual event’ in Malaysia, most specifically when it is approaching Chinese New Year. Who is to blame? Some have claimed that it is those who are manipulating supplies from the hypermarkets to the re-packaging companies and other suppliers.

Instead of sitting back and brushing the cooking oil shortage as rumours, the ministry should perhaps take pro-active action against those who are manipulating the situation and the market demand for their own profit. While no one can ascertain that it is done by certain parties, if it happens every year, particularly during these times, then the pattern is very alarming. This is the time when items like cooking oil and rice are very much demanded and if the situation continues, households would have to pay more just to have a festive celebration. Maybe a more effective price control mechanism should be put in place where supply and demand are controlled and monitored, but whatever it is, the ministry must do something.