THE subsidy for eggs will remain as supply is not yet stable.

Deputy Agriculture and Food Security Minister Chan Foong Hin said the price control for eggs will be maintained.

“The cost of producing eggs is still high.

“If prices were to be floated, each egg is expected to increase in cost by at least 10 sen, which is equivalent to a RM3 increase in the price for a tray of eggs (30 eggs),” he said.

Acting Domestic Trade and Cost of Living Minister Armizan Mohd Ali had said the price of chicken could decrease to below RM9.40 per kg even after subsidies and price controls were discontinued from yesterday.

He had said industry players have assured the government chicken price would not increase and supply would be sufficient.

“After implementing (subsidies and price controls on chicken) for 20 months, we can float chicken prices.

“The industry has also guaranteed that the supply of the protein source would be sufficient, and they would be able to sell it at a lower rate than previous controlled prices,” he said.

Agriculture and Food Security Ministry Mohamad Sabu also said subsidies and price controls for chicken would be terminated, while subsidies and price controls for grade A, B and C eggs would remain.

Chan said in order not to burden of people, the government has decided to continue to control the selling price of eggs through subsidies.

“Once the situation improves and stability is fully restored, the government will revisit this decision.”

He said the ministry is also worried that if it continues to control the egg market, it will affect farmers’ production and consumers will not be able to buy cheap eggs.

“The ministry should first take care of farmers and ensure their production is not affected. Only then can we take care of food security.

“We have a large population, and Malaysia is a country accustomed to subsidies, so if we want to move towards a sustainable approach, we have to strike a balance between the needs of both farmers and consumers, and it must be a soft landing.”

Mydin hypermarket managing director Ameer Ali Mydin had proposed to eliminate the ceiling price for eggs which can promote more efficient production and thereby achieve a more stable market supply.  

Chan said the government has agreed to the proposal, but will start first with the removal of subsidies for chicken.

“Taking into account the needs of the people, the government decided to start by removing the chicken subsidy.” – November 2, 2023.