Don’t count them yet: A source says that the effect of the stronger ringgit on poultry prices may only be seen in a few months. — FAIHAN GHANI/The Star
Retailers: Despite stronger ringgit, no cheaper poultry for now
PETALING JAYA: Despite the ringgit’s strong performance against the US dollar in recent weeks, retailers say there will be no immediate impact on poultry prices due to currency and economic fluctuations.
Bumiputra Retailers Association president Datuk Ameer Ali Mydin said it is difficult to expect lower prices during this period, adding that any possible price changes can only be observed within the next two to three months.
“Suppliers have also already bought the livestock feed needed for poultry and it will take time before a new intake is needed,” he said when contacted.
Ameer, who is Mydin Mohamed Holdings Berhad managing director, added that the price of chicken had already dropped down to RM6.50 per kg in recent months before gradually increasing to hover between RM8.20 and RM8.50 per kg.
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He also observed a general drop in sales for necessities like food items, despite Malaysia’s positive economic development.
“The statistics are good but its impact has yet to trickle down to those who really need it.
“One way to really ease the rakyat’s cost of living is increasing the minimum wage,” he said.
On the government’s consideration to remove subsidies for Grade A, B and C eggs, he said they had been advocating it for a “very long time”.
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Similarly, an industry source said it would be difficult to predict whether poultry produce will be cheaper soon.
“It’s a very subjective matter and depends on how individual corporations and companies manage their funds.
“We also haven’t seen the full effect of the strengthening ringgit, given that its rise also took us all by shock.
“Also, lower prices may only be observed if the ringgit continues to maintain its strength over the next two to three months, where industry players can adjust their expenditures appropriately,” said the source.
Meanwhile, economist Prof Dr Yeah Kim Leng said the stronger ringgit, by over 8% against the US dollar since January, would lead to lower prices for imported food, beverages and consumables.
“For consumers travelling and studying overseas, and likewise purchasing or acquiring foreign assets, will be cheaper with a stronger ringgit,” he said.
Bank Muamalat Malaysia Berhad chief economist Mohd Afzanizam Abdul Rashid said there was always the possibility of businesses reducing their prices to gain market share, especially when import costs have been greatly reduced due to the stronger ringgit.
“It’s more towards behaviour among firms as the reduction in selling prices would have an immediate impact on their profits.
“Any move to cut prices also has to be justified so it will bring profits in the future,” he said.
