GEORGE TOWN, November 3 – On October 30, 2023, the Minister of Agriculture and Food Security (MAFS), YB, announced that in line with the phased approach to subsidy restructuring, the government has agreed to end subsidies and price controls for chicken starting from November 1, 2023. Subsidies and price controls for grade A, B, and C eggs will continue to be provided through the existing mechanism. Since February 2022, the government has shouldered RM3.8 billion for egg and chicken subsidies.
The mass termination of chicken subsidies is aimed at reducing subsidy wastage, which is currently enjoyed by foreigners and high-income groups. The termination of chicken price controls also supports the sustainability of the local chicken production industry. Additionally, through this method, the government will be able to enhance various socio-economic and welfare initiatives, including cash assistance. The termination of chicken subsidies has taken into account the current supply and pricing trends, as well as stable chicken production and farm costs, which have contributed to current market prices being below the price ceiling.
In this regard, the Penang State Government, in close collaboration with the Federal Agricultural Marketing Authority (FAMA) and the Farmers’ Organization Authority (LPP), has played a significant role in expanding access to chicken supplies through 31 FAMA Agrobazaar Outlets and 16 Runcit NAFAS Outlets. The ongoing Agro MADANI Sales Program and Rahmah Sales Program throughout the districts in Penang also provide choices and assurances for people to obtain chicken supplies at reasonable prices and below the price ceiling.
The Penang State Ministry of Trade and Consumer Affairs will monitor and enforce the Price Control and Anti-Profiteering Act 2011 (AKHAP 2011) to ensure that there is no excessive profiteering activity and price manipulation by irresponsible retailers at the retail level. In addition, the Penang State Government will continue to collaborate with all relevant parties to ensure the status of chicken supply and prices at the farm level remains stable and does not burden the people, and to prevent any profiteering activities throughout the supply chain.
The Penang State Government, with support from the Ministry of Agriculture and Food Security (MAFS), will continue to focus on strengthening the poultry farming industry through incentive support, such as financing for small and medium-sized farmers, microcredit schemes as working capital support for community farmers, and the open chicken coop transformation program to enclosed chicken coops. These initiatives will enhance direct access to supplies from community farmers to wholesalers in the market.
