More funds for social aid with lifting of subsidy

KANGAR: The move to end the chicken subsidy and price control would mean more funds would be available for other needs of the community in a targeted manner, says a university lecturer.

Universiti Malaysia Perlis’ Business and Communication Faculty senior lecturer Assoc Prof Dr Mohd Zukime Mat Junoh said the removal of the subsidy, effective from Nov 1, would allow the government to use the money to support other efforts such as social assistance programmes for the needy.

“By ending the chicken subsidy, the government can reduce the direct expenditure required to support the price of chicken. This will enable it to use financial resources more efficiently.

“The government can then provide support to target groups in need. This may include supporting education, health, social development or other assistance programmes,” he told Bernama.

On Oct 30, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced that the government had dispensed RM3.8bil in subsidies to cover the cost of chicken and eggs since February last year.

He was quoted as saying the rationale for ending the wholesale subsidy of chicken was to reduce leakages that allowed foreigners and high-income earners to also enjoy subsidies.

Mohd Zukime said if the funds that were previously used for the chicken subsidy were diverted to the assistance programmes, it could help improve economic equality by providing direct benefits to the underprivileged.

“I believe that when the government decided to end the subsidy and price control, chicken prices would remain stable as long as the cost of input factors in chicken production was still under control,” he said.