PETALING JAYA: The plan to end the egg subsidy is still in the market research stage, says the Agriculture and Food Security Ministry (KPKM).
The ministry in a brief response to The Star said there are still some arrangements to be made before presenting the matter to the National Action Council on Cost of Living (NACCOL).
On Oct 9, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu said the government was considering ending the egg subsidy involving grades A, B and C to save RM100mil a month, which could be redirected to develop other critical aspects in agro-food sectors.
Mohammad said the country has spent more than RM3bil since February 2022 in subsidies for chicken and chicken eggs.
While the ministry has not officially confirmed the timeline for the subsidy’s removal, the retail industry, said Bumiputera Retailers Association president Datuk Dr Ameer Ali Mydin, has yet to be engaged in discussions regarding the government’s plan.
“There was no discussion we are aware of, especially among the retail players,” he said.
However, Ameer Ali said the move is welcomed as it would help in addressing the subsidy leakages.
“We know that the subsidies were aimed at Malaysians who are in need but we are also concerned that this facility would be abused by other parties,” he said.
Ameer Ali said there must be political will by the government to take the bold move of removing the government’s assistance in several essential items as it was done on chicken supply last year.
The subsidy for chicken was terminated on Nov 1 last year, following which, the supply and price of chicken became more stable.
Pertubuhan Mesra Pengguna Malaysia deputy president Azlin Othman said that even if the subsidy on eggs are removed, it would only leave a minimal impact on costs borne by producers.
She said this is because the production cost is currently low owing to the stronger ringgit’s position and lower import prices of chicken feed.
She also said that with the expected removal of egg subsidies, producers might gain more flexibility in adjusting their selling prices in response to market demand and supply conditions.
