KUALA LUMPUR: The government must carefully assess its plan to remove egg subsidies, to avoid adversely affecting consumers, especially those with low incomes said Federation of Malaysian Consumer Associations (Fomca).
Its chief executive officer T. Saravanan said for the move to be implemented, the supply and price of eggs in the market must remain steady.
"Fomca understands that providing subsidies is a temporary measure aimed at ensuring the prices of essential goods remain affordable for consumers during a supply crisis.
"However, the termination of these subsidies must be done carefully to avoid harming consumers, particularly low-income groups.
"If the government feels it is time to end the subsidies, it must ensure that the supply and prices remain stable without any drastic changes that could impact the cost of living," he told BH today.
Saravanan emphasised the need to protect consumer interests by ensuring that egg prices remain reasonable.
"Before fully ending the subsidies, perhaps the government could consider implementing more flexible or targeted price control mechanisms.
"This would ensure that those who truly need assistance continue to receive help while allowing the market to operate more freely for those who can afford to pay market prices.
"Additionally, the government should explore ways to strengthen the supply chain and improve local productivity to ensure a sufficient long-term supply of eggs without relying on subsidies," he said.
He added that this initiative should also be closely monitored to prevent disruptions in the prices of related food items, as any increase in the costs of essential food supplies could trigger a chain reaction.
Earlier today, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu in his speech at the ministry's monthly assembly said the government is reviewing the removal of egg subsidies in the country.
He said savings for these subsidy cuts could be redirected to develop other critical aspects in agro-food sectors.
"When we made the unpopular decision to end the chicken subsidy, many criticised it, claiming chicken prices would skyrocket.
"Alhamdulillah, after the subsidy was removed, chicken prices did not soar, and more importantly, the country saved RM100 million a month from the removal of the chicken subsidy," he said, adding that the government's decision to end the chicken subsidy last year had proven successful, with chicken prices and supply in the market remaining stable until now.