PETALING JAYA: The decision to reduce the price of eggs by three sen each could lead to a shortage, says Datuk Seri Dr Wee Ka Siong.
The MCA president said even a small 5% increase in demand could lead to a shortage of one million eggs, with current supply at 21 million.
"Should this happen, shortages will re-occur and prices will go up again as production of eggs cannot be ramped up overnight," said Dr Wee in a Facebook post on Tuesday (June 18).
"While everyone welcomes a reduction in staple food prices, such an announcement will cause more harm than good, creating higher cost to the government with higher subsidies for eggs which currently exceeds RM927mil a year," he said.
Dr Wee said the supply of eggs has stabilised in recent months but added that reports show it had yet to return to pre-pandemic levels.
"The government must do its best to ensure the supply of eggs is not disrupted like before as the poultry industry has yet to rebuild its production buffer," added Dr Wee.
