KUALA LUMPUR — Frozen food prices could go up by about 10%, the Malaysian Food Manufacturers Association (MFMA) said, citing higher diesel prices which will lead to higher transportation costs as a result of ongoing Middle East conflict.
Bus operators have also warned of impact on fares as they have to buy diesel at market price first and only claim fuel subsidies from the government later, creating a “liquidity crisis”.
The government’s move announced yesterday to temporarily reduce quota limits for subsidised RON95 petrol and manage tank refill limits for subsidised diesel in Sabah and Sarawak does not impact manufacturers and bus operators.
MFMA president Ding Hong Sing suggested the price of diesel be brought down to about RM3 per litre for food producers to manage pressures resulting from the conflict.
They also want a six‑ to 12‑month moratorium on loan interest repayments, and fast‑tracked special loans to help businesses, Ding Hong Sing told a press conference, reported by The Star.
The Federation of Sundry Goods Merchants Associations of Malaysia and the Malaysian Bakery, Biscuit, Confectionery, Mee and Kuey Teow Merchants Association also joined the press conference yesterday to make these demands.
“If the price can be adjusted to around RM3‑plus per litre in Peninsular Malaysia, we can manage,” Ding said, noting that a prolonged conflict and spiralling world oil prices will lead to manufacturers either closing down or passing costs on to consumers.
Ding said the food manufacturing sector, comprising many small and medium-sized producers, was paying RM60,000 to RM80,000 a month to cover rising costs.
Besides higher diesel prices, they have to contend with other pressures along the supply chain, where components such as plastic, are petroleum based.
Unsubsidised diesel in Peninsula rose 80 sen to RM5.52 per litre for this week until April 1.
Pan Malaysian Bus Operators Association president Datuk Ashfar Ali meanwhile said that although express bus operators received diesel subsidies, they still had to deal with a “liquidity crisis”.
Although bus operators are allocated a quota of 6,000 litres of diesel at RM1.88 per litre, they must first pay the market price when refuelling and can only claim the subsidy refund later.
“The government only refunds the price difference after the individual company’s statement date. This means our cash flow is constantly stuck until the end of the billing cycle. It is a significant burden for express bus operators,” New Straits Times reported him saying. – March 27, 2026