Malaysia will fully phase out its egg subsidy by 1 August, as part of a broader subsidy retargeting initiative under the MADANI framework. The Ministry of Agriculture and Food Security announced that the subsidy will be halved from RM0.10 to RM0.05 per egg starting 1 May, before being completely removed two months later.

The government said this policy shift is aimed at ensuring long-term fiscal sustainability while focusing support on sectors and communities that need it most. The decision follows industry assurances that egg supply has stabilised, with sufficient production capacity and competitive pricing, even during high-demand periods such as the recent Aidilfitri celebrations.

From February 2022 to December 2024, the government spent nearly RM2.5 billion on egg subsidies to help producers manage cost increases brought on by the COVID-19 pandemic and global disruptions, particularly the war in Ukraine, which drove up prices of imported soybean and maize, key inputs in poultry feed.

Officials now argue that maintaining subsidies indefinitely is no longer financially viable and risks undermining the resilience of local egg producers. Moreover, they noted that the current subsidy structure has benefited not only low-income groups, but also high-income earners and non-citizens, a situation they deem inequitable.

Funds saved from the subsidy phase-out, the ministry said, will be redirected to targeted development projects that support public welfare in line with the MADANI values.

To cushion the impact on consumers, the government has outlined several support measures. Egg producers have agreed to introduce special-grade eggs at more affordable prices, and competitively priced eggs will continue to be available nationwide through Agro MADANI and Rahmah Sales programmes, including at all Federal Agricultural Marketing Authority (FAMA) and Farmers’ Organisation Authority (LPP) outlets.

Meanwhile, the Ministry of Domestic Trade and Cost of Living will step up enforcement efforts under the Price Control and Anti-Profiteering Act 2011 to prevent unscrupulous traders from exploiting the situation through price manipulation or profiteering.

Consumers can direct any enquiries or complaints regarding egg supply to the Ministry of Agriculture and Food Security via email at [email protected], or contact the headquarters in Putrajaya at 03-8000 8000.

(Source: KPKM)

• TAGS:
• Chicken Egg
• Egg Prices
• Ministry of Agriculture and Food Security
• Subsidy