THE retail price of chicken “will not skyrocket” with the end of price controls and subsidies as there is ample supply, Deputy Agriculture and Food Security Minister Chan Foong Hin said.

Pointing to the basic economic principle of supply and demand, Chan said prices do not go up when supply meets demand.

He said before the lifting of price control, the price of chicken had remained around RM10.40 per kg in suburban areas.

Chan said prices in two supermarket chains were even lower now than when the ceiling price was RM9.40 per kg.

“Mydin hypermarkets were selling them at RM7.99 per kg, while Tesco Lotus was selling at RM7.49,” he said.

Malaysia ranks third among Asean countries, behind Indonesia and Thailand, in chicken production.

To allay fears of profiteering, Chan said the government would be monitoring prices from farms to retailers.

“If there is a price increase due to insufficient supply, the government will import chicken.”

Chan said price controls could be reinstated if price manipulation takes place, warning that subsidies might not be return with the price controls.

He said subsidies were discontinued so that the money could be distributed to those in need.

From February last year to September, chicken and egg subsidies cost the government RM3.8 billion, Chan said.

“By discontinuing the subsidy, the government estimates it can save RM100 million per month. This money can help the government implement various welfare policies.

“At the same time, this money will go to providing funds for small and medium-sized poultry farmers, transforming them into modern enclosed farms, or providing micro loans to help expand their businesses,“ Chan said.

He said by supporting the expansion and development of the industry, the country can ensure a steady supply of chicken as the most important protein source for the people.

“This way, even if there is a global supply disruption, we can still ensure the country’s food supply,” he said.

Ceilings on chicken and egg prices have been lifted to allow market forces to determine the prices.

But on Monday, Agriculture and Food Security Minister Mohamad Sabu said the subsidy and price control would remain for eggs.

“The termination of chicken subsidies takes into account current supply and price trends and the stabilisation of farm prices and production costs. This has caused the  market price to drop below the ceiling.

“The government will ensure the selling price of chicken remains reasonable,” the minister said.

He said chicken prices were floated after a survey and assurances of cooperation from producers. – November 2, 2023.