KUALA LUMPUR: Agriculture and Food Security Minister Datuk Seri Mohamad Sabu today announced that subsidies and price controls for chicken would be discontinued from Nov 1, while subsidies and price controls for chicken eggs remain unaffected.
He said the chicken supply in the country remains sufficient.
"The termination of chicken subsidies has taken into consideration the current supply and price trends, and the cost of chicken production has begun to stabilise, contributing to the current market prices being below the ceiling price.
"Subsidies and price control for Grade A, B, and C chicken eggs will continue using the existing mechanism.
"We are maintaining the subsidies for eggs because if we were to discontinue them at this point, the price of each egg is expected to increase by RM0.10, and typically, people purchase eggs not individually but in trays," he explained.
The retail ceiling price for grade A eggs is 45 sen each, grade B (43 sen) and grade C (41 sen).
Mat Sabu said the government had obtained a commitment from the industry to prevent substantial price hikes for farm-gate chicken, which would burden consumers.
"We would ensure the floating selling price of chicken remains reasonable.
"Also, egg producers and other stakeholders have given their assurance they will make an effort to ensure an adequate supply of eggs in the future," he said.
He assured that the government would secure additional supplies from external sources in case of a shortage of chickens.
He also reminded the public not to panic buy, "just get the amount that you need; do not stock up since that might cause an unwanted supply shortage."
Mat Sabu said the Domestic Trade and Consumer Affairs Ministry will carry out monitoring and enforcement to ensure that there is no excessive profiteering and price manipulation by irresponsible retailers.
The minister also said the announcement aligns with the phased approach to subsidy restructuring.
"The rationale behind discontinuing bulk subsidies for chicken is to reduce subsidy leakage, which currently benefits foreign residents and high-income groups. The termination of chicken price controls also supports the sustainability of the local chicken production industry.
"Since Feb 2022, the government has incurred RM3.8 billion for egg and chicken subsidies. Through this method, the government can enhance various socio-economic and welfare initiatives, including cash assistance," he said.
Also present was Finance Ministry secretary-general Datuk Johan Mahmood Merican who said the government spends around RM 100 million a month on chicken subsidies.
Meanwhile, Domestic Trade and Consumer Affairs Ministry secretary-general Datuk Seri Mohd Sayuthi Bakar said if the prices of chickens become excessively burdensome, the government can reimplement price controls, either through subsidies or without subsidies.
When presenting 2024 Budget on Oct 13, Prime Minister Datuk Seri Anwar Ibrahim said the government was considering floating the price of chicken and eggs as the supply of both items were now stable.