The Muslim Restaurants Association Malaysia (Presma) today promised its members will not hike prices following cuts in cooking oil subsidy starting this month.

The government removed all subsidies for cooking oil, except for those sold in the 1kg polybag packets.

Presma president Noorul Hassan Saul Hameed said the subsidy cut should not affect traders.

"You must not listen to rumours that say restaurants will raise food prices. I can guarantee you, and our members have all promised not to raise the prices of food and drinks sold...

"The subsidy was only for households, not traders, so there is no reason for traders to come to us crying and complaining that their costs have gone up because price of cooking oil is higher," he said.

He told reporters this after the 13th Presma Annual General Meeting in Putrajaya.

Following the scaling back of subsidies, the prices of some cooking oil products have shot up by as much as 60 percent.

For example, the 5kg Red Eagle cooking oil which was RM14.70 rose to RM23.70, an increase of RM9 after the subsidy was removed, according to Sin Chew Daily.

Noorul said Presma will not accept excuses that Mamak restaurants are forced to increase prices due to higher cooking oil prices.

"We have good cooperation with the Domestic Trade, Cooperatives and Consumerism Ministry (KPDNKK) and we will lodge report (against those who increase their prices).

"We don't have enforcement powers but under the Price Control and Anti-Profiteering Act, they (KPDNKK) have a right to fine business owners," he said.

On another matter, Noorul urged the government to reconsider the suspension on taking in foreign workers.

"We are not asking money from the government, we just want approval to hire foreign workers in our restaurants.

"There is a desperate need (for foreign workers), the situation is serious," he said.

He urged the government to urgently approve the hiring of at least 10,000 foreign workers.

He said the almost year-long freeze on the intake of foreign workers had caused a shortage of workers particularly in mamak restaurants.

"The government needs to take this seriously as the industry contributes between RM9 billion to RM10 billion a year," he said.

Meanwhile, Domestic Trade, Cooperatives and Cooperatives and Consumerism Minister Hamzah Zainuddin who officiated Presma's AGM asked the organisation to prepare a working paper on the matter.

He asked that Presma detail how many foreign workers its members require and present it to the government next week.