The Malaysian Insight

PUTRAJAYA’s backtracking on its decision to scrap subsidies and price controls for chicken and eggs is welcomed by both the business community and the public. 

Federation of Sundry Goods Merchants Associations of Malaysia president Hong Chee Meng said now was not the time to withdraw subsidies as people were trying to cope with inflationary pressures and a sluggish economy. 

“The government has the responsibility to help the people,” he told The Malaysian Insight. 

Agriculture and Food Security Minister Mohamad Sabu on June 8 announced that the subsidies for chicken and eggs would not be continued after June 30. He said the prices of chicken and eggs would be floated starting July 1. 

Before one could blink, however, Prime Minister Anwar Ibrahim announced that the subsidies and price control would be maintained. 

The Agriculture and Food Security Ministry and Domestic Trade and Cost of Living Ministry, in a joint statement, stated the decision was made after taking into account all aspects to ensure the poultry industry remained sustainable. 

“The decision to continue providing subsidies and control the price of chicken and eggs were made to ensure the welfare of the people in line with the aspirations of the Malaysia Madani government,” the statement added. 

Hong said eggs, chicken, and cooking oil are daily necessities.  

He said with the ringgit continuing to depreciate, any decision to remove subsidies and price controls “will make the people’s life miserable”.

Hong said chicken feed is largely imported and coupled with the depreciating ringgit, poultry farmers would be tempted to increase prices to cover costs. 

“I welcome the government’s decision. Eggs and chicken are in high demand and used in most daily necessities – chickens in restaurants and eggs in the making of bread, cakes, and cookies.” 

Tan Luan Huat, the chairman of the Federation of Selangor Traders Association echoed Hong’s sentiments and hoped the decision would be in place even after the state elections. 

“Whether now or after the state elections, I hope the government will continue to maintain the subsidies for these essential goods.” 

Tan said the subsidies would help reduce people’s expenses on food, particularly cooking oil. 

The government’s U-turn also set social media abuzz.  

Social media user Thean Yuen Ket posted online that cooking oil, chicken, and eggs are important and the subsidies “cannot be cancelled” while Kevin Tan said cooking oil, chicken, and egg subsidies “cannot be traded off” and removing them “will affect 99% of the people”. 

Ameer Ali Mydin, managing director of Mydin Mohamed Holdings, welcomed the government’s decision but wanted the cooking oil subsidy removed. 

In an interview with Free Malaysia Today, he said the government should scrap the subsidy for cooking oil due to its misuse, adding that its removal would have little impact on consumers.

“If the egg subsidy is removed, eggs will go up by at least 10 sen each and chicken will also go up to RM1 or RM1.50 per kg, putting a burden on middle- and lower-income groups.” – June 22, 2023.