KUALA LUMPUR: The Government is concerned over the recent increases in the price of consumer goods and is committed to ensuring that this is addressed quickly for the welfare of Keluarga Malaysia (the Malaysian Family), said Prime Minister Datuk Seri Ismail Sabri Yaakob on Jan 24.
On Jan 31, he chaired the National Action Council on Cost of Living (NACCOL), which decided to lower the maximum price of standard chickens by 20 sen, from RM9.10 to RM8.90 per kg. Ceiling prices of chicken eggs for all grades will remain the same. This will be in force until June 5.
This was done under the Malaysian Family Maximum Price Scheme (or Skim Harga Maksimum Keluarga Malaysia, SHMKM). This was the third time that the price of chicken has been reduced.
During the Deepavali celebration, the price was fixed at RM9.50 per kg. During the initial SHMKM (Dec 7 to Dec 31, 2021), it was lowered to RM9.30. The price was further lowered to RM9.10 when SHMKM was extended to Feb 4. And now, it has come down to RM8.90.
Other steps are being taken to increase the supply of chicken in the local market. Ismail Sabri said that import permits for whole chickens are now open to all chicken importers with approved permits (AP). Before this, the import of only chicken parts such as wings and thighs was permitted. In addition, chicken import APs are to be extended to hypermarkets.
Another method to control inflation is to intensify the Keluarga Malaysia Sales Programme (PJKM), slated for all 222 parliamentary constituencies, to help the people have more access to cheaper basic necessities.
“Kedai Harga Patut (Fair Price Shops) also need to be reactivated nationwide, while Pasar Tani (Farmers Markets) must operate as frequently as possible,” said Ismail Sabri on Jan 31.
“Cooperatives involved in the agricultural industry will be roped in to offer basic necessities without the involvement of middlemen as a way to stabilise prices,” he added.
The NACCOL meeting also agreed to instruct the Malaysian Competition Commission to investigate the possibility of cartels fixing the price of chicken and eggs.
Domestic Trade and Consumer Affairs Minister Datuk Seri Alexander Nanta Linggi said on Feb 2 that if the government did not control prices, the retail price of chicken would probably exceed RM10 per kg because the cost of poultry farming has increased by 70 percent.
For one, the grains to feed the birds are no longer “chicken feed”. Since Oct 2020, the cost of corn has shot up by more than 60%, while soybean meal prices have gone up by more than 40%. Another problem is the lack of foreign workers, many of whom have returned to their home countries during the Covid 19 pandemic.
Thus, the lowering of retail prices (while costs have gone up) may jeopardise the chicken farming industry (and our food security), with smaller farms being forced to close down.
To deal with this, Ismail Sabri said on Jan 31 that the government will provide subsidies to the industry to help them as well. Details on the subsidies will be implemented by a cost of living task force until prices stabilise. The task force is headed by the Agriculture and Food Industry Ministry (MAFI), in association with several other ministries, representatives of government-linked companies and consumer bodies
As for the lack of foreign labour, the Prime Minister said applications to hire Bangladeshi workers were opened in stages on Jan 28.
The NACCOL meeting also discussed the longer-term measures needed to address the issue of food supply and production, especially for chicken and chicken eggs.
For one, the Finance Ministry will look into tax incentives to facilitate a transformation of the chicken farming industry, said Ismail Sabri.
Another step is to support research carried out by the Malaysian Agricultural Research and Development Institute (MARDI) on how oil palm kernel can replace corn and soy as chicken feed to lower costs.
The Prime Minister also proposed that state governments extend the period for agricultural activities for lands under temporary occupation licences (TOL).
“(More) long-term action plans will be discussed in detail in the next NACCOL meeting,” he said.
“Proactive action must be taken by the government to ensure prices remain reasonable, while at the same time also ensuring the chicken farming industry is not impacted and able to ensure supply remains stable.”