KUALA LUMPUR, October 31 — As part of a phased subsidy reevaluation approach, the Malaysian government has decided to discontinue subsidies and price controls for chicken starting from November 1. The Minister of Agriculture and Food Security, Datuk Seri Mohamad Sabu, announced that subsidies and price controls for Grade A, B, and C eggs will continue using the current mechanisms. He stated that since February 2022, the government has subsidized RM3.8 billion for eggs and chicken, with RM100 million dedicated to chicken alone.
“The rationale behind the bulk subsidy termination for chicken is to reduce the subsidy leakages, which are currently benefiting foreigners and high-income groups,” explained Datuk Seri Mohamad Sabu during a press conference held at the Farmers’ Organization Building here on Monday. He added that ending the chicken price controls also supports the sustainability of the local chicken production industry. Furthermore, through this approach, the government can enhance various socio-economic and welfare initiatives for the people, including cash assistance.
“This discontinuation of chicken subsidies takes into account the current supply and pricing trends, with farm prices and chicken production costs stabilizing, contributing to the current market prices falling below the ceiling price,” he stated. In this regard, he noted that the government would ensure that chicken sale prices, which will be floated, remain reasonable. Moreover, the government is expanding access to chicken supplies through continuous Agro Madani and Rahmah sales throughout the country to provide options to consumers. I assure the people that they will be able to obtain chicken supplies at reasonable prices and below the ceiling price, Datuk Seri Mohamad Sabu concluded.
