The government has expressed confidence in the stability of egg and chicken prices and supply following the withdrawal of subsidies. Datuk Fuziah Salleh, the Deputy Domestic Trade and Cost of Living Minister, confirmed that the removal of egg subsidies, implemented from 1 August, has not led to disruptions in supply or an increase in prices. This positive outcome mirrors the situation observed after chicken subsidies and price ceilings were lifted in November 2023.

Enhanced Monitoring Ensures Fair Pricing

Before the elimination of chicken subsidies, regulating prices proved challenging, often resulting in consumers paying additional charges. To counter this, the ministry intensified its monitoring efforts across the entire supply chain. This comprehensive oversight, covering production costs through to retail, has successfully stabilised and, in some instances, even lowered chicken prices. The ministry asserts its authority through legislation such as the Price Control and Anti-Profiteering Act, the Supply Control Act, and the Competition Act to manage supply and pricing effectively.

Strategic Subsidy Withdrawal

Since February 2022, the government has allocated approximately RM2.5 billion towards egg subsidies. These subsidies were initially introduced to mitigate the impact of global disruptions, including the Covid-19 pandemic and the Russia-Ukraine war, which had significantly driven up the cost of feed ingredients. The primary objective was to support producers and safeguard consumers from drastic price escalations. The government’s current stance aims to demonstrate the efficacy of its policy adjustments.

Follow us on our official WhatsApp channel for the latest money tips and updates.

Christina Chandra

Christina writes about personal finance with an eye for making the complicated feel straightforward. She is drawn to the everyday money decisions people face and genuinely enjoys finding the clearest way to explain them. Between articles, she is probably napping, on a hiking trail, or terrorising her sister’s cats.

• TAGS:
• eggs
• price reduction

About THE AUTHOR

Christina Chandra

Christina Chandra

Christina writes about personal finance with an eye for making the complicated feel straightforward. She is drawn to the everyday money decisions people face and genuinely enjoys finding the clearest way to explain them. Between articles, she is probably napping, on a hiking trail, or terrorising her sister's cats.

See all articles

•