KUALA LUMPUR: The withdrawal of government subsidies for eggs and chicken has not disrupted supply or led to price increases, says Datuk Fuziah Salleh.
The Deputy Domestic Trade and Cost of Living Minister said the decision to remove the egg subsidy, which took effect on Aug 1, has shown positive results.
“When the egg subsidy was removed, we found that there were no issues with supply or prices,” she said in Parliament on Wednesday (Aug 6).
Citing an earlier example, Fuziah said similar action was taken with chicken in November 2023, when subsidies were ended and the price ceiling of RM9.40 was lifted.
“Before that, we struggled to control chicken prices, even with subsidies and price caps in place. Consumers still had to pay extra, such as for cutting charges.
“But after the subsidy was removed, we tightened monitoring across the supply chain — from production costs and raw materials to distribution and retail. We recorded chicken prices daily to ensure the move was working,” she said.
As a result, she noted that chicken prices have since stabilised, with some selling at lower prices than before.
Fuziah said the ministry has the authority under various laws, including the Price Control and Anti-Profiteering Act, the Supply Control Act, and the Competition Act, to monitor and control supply and pricing at every level of the supply chain.
She was responding to Dr Taufiq Johari (PH–Sungai Petani), who had asked how the National Action Council on Cost of Living (Naccol) ensures that government interventions truly benefit the people.
“We want to show that our policies are working and having a real impact on the ground,” she said.
The government officially discontinued the egg subsidy on Aug 1, after spending around RM2.5bil since February 2022 to support the industry.
These subsidies were introduced in response to the global disruptions caused by the Covid-19 pandemic and the Russia-Ukraine war, which pushed up the prices of essential feed ingredients like soybeans and corn.
The financial aid aimed to help local egg producers manage higher input costs, prevent supply shortages, and shield consumers from drastic price hikes.
