PETALING JAYA: Due to more expensive raw materials, prices of bakery, biscuits, confectionery, mee and kuay teow in the country have increased by 20-30% since January, and operators do not rule out the possibility of further price hikes in near future.

Malaysian Bakery, Biscuit, Confectionery, Mee and Kuay Teow Merchants Association president Lai Yee Kei said whether there would be any further price increase depends on two major factors: the margin of raw material price hikes and the manufacturers’ ability to absorb the additional cost.

He told Sin Chew Daily in a telephone interview that whether there would be more price hikes and how much the increase will also depend on the manufacturers’ mechanized production, cost control, employees and other factors.

“All these will affect how well the manufacturers are able to absorb the cost increase. It depends on how the manufacturers will adjust their selling prices.”

He said not only had the major ingredient, namely flour, become more expensive now, the prices of other raw materials such as wheat flour, corn flour and sago had also increased.

“That’s why we have increased the selling prices by 20-30% since the beginning of the year.”

He said the selling price of flour alone had increased by at least 40% since January.

“Additionally, the dearer palm oil and cooking oil prices have also prompted us to adjust our selling prices upward.

“Cooking oil cost a little over RM3,000 a ton in 2020, but is now more than RM8,000, equivalent to RM5 increase for every kilogram.”

Lai explained that higher goods prices were caused by a variety of factors, including the lockdown, labor shortage, higher shipping cost and the war between Russia and Ukraine, among others.

He said flour is a major ingredient for many foods in Malaysia, and the supply disruption will adversely impact the country’s economy with at least 20% of the population affected.