Kuala Lumpur, Jan. 8 - The Malaysian government said it would flood the retail market with cooking oil starting Tuesday to overcome panic buying sparked by fears of a shortage ahead of Chinese Lunar New Year festivities.
Stores in many states have been depleted of palm oil-based cooking oil in recent days, prompting authorities to impose temporary rationing.
Prime Minister Abdullah Ahmad Badawi said in a statement late Monday that a special Cabinet committee has decided to "increase the production quota of subsidized cooking oil significantly in the nearest future."
Domestic Trade Minister Shafie Apdal said manufacturers and refineries across Malaysia - a key palm oil producer - have been told to boost monthly production to 70,000 metric tons starting Tuesday, up from the usual 55,000 tons.
Recent major celebrations in the multiethnic country - including the Muslim holiday of Eid al-Fitr, Christmas and the Hindu festival of Diwali - have caused cooking oil stocks to run low.
Abdullah said the problem has been compounded by hoarding and the smuggling of Malaysia's relatively cheap cooking oil to other countries, in an apparent reference to Singapore and Thailand.
Consumers have worried that the problem could worsen ahead of February's Lunar New Year revelries and cause food prices to soar. This could create political discomfort for the government, which is grappling with public complaints of rising inflation.
Abdullah expressed confidence that supply "would return to normal in a few days" after additional cooking oil is pumped into the market, adding that prices would not be raised and rationing would no longer be required.
Malaysia spent nearly MYR800 million (US$243 million) last year to subsidize cooking oil, according to Abdullah's statement.
"The authorities will tighten surveillance at the country's entry and exit points" to prevent the smuggling of cooking oil, Abdullah said.