KUALA LUMPUR – Targeted subsidies and price controls for chicken in Malaysia will end on November 1, while subsidies for eggs (grades A, B, and C) will continue using the existing mechanism.
During a press conference here, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the Domestic Trade and Cost of Living Ministry will carry out monitoring and enforcement efforts to deter profiteering activities.
He added that the government is prepared to turn to foreign sources for additional chicken supplies if prices spike.
“While the government continues to focus on a sustainable poultry farming industry, it will also expand access to chicken supplies through continuous Agro Madani and Rahmah sales programmes nationwide.
“The lifting of subsidies for chicken is meant to reduce leakage, as such assistance is seen to be enjoyed by foreigners and high-income earners.”
By lifting price controls for chicken, Mohamad said the government will be able to increase various socioeconomic and welfare initiatives for the people, including cash assistance.
“The move also takes into account the current supply trends and farm prices, as well as the cost of chicken production, which has stabilised. These factors have contributed to the current market price being lower than the ceiling price (set by the government).
“During an engagement session with industry players on October 22, the government has obtained a commitment from the industry that the prices of farm-raised chicken does not significantly increase to the point of burdening consumers.”
Mohamad said the government has allocated a total of RM3.8 billion in subsidies to cover the costs of chicken and eggs since February this year.
Also present at the press conference today are Mohamad’s deputy Chan Foong Hin, Treasury secretary-general Datuk Johan Mahmood Merican and Domestic Trade and Cost of Living secretary-general Datuk Mohd Sayuthi Bakar.
On October 19, Mohamad said discussions and meetings were being held with the stakeholders and industry players, with the team headed by the ministry’s chief secretary, to ensure prices remain at a reasonable rate after the announcement.
During the tabling of the 2024 national budget on October 13, Datuk Seri Anwar Ibrahim said temporary price controls for chicken and eggs would be lifted as current trends indicated a stable supply, and the move would enable the local market to function freely in ensuring sufficient supply. – October 30, 2023