October 15, 2024

Malaysia urged to consider more targeted price control for chicken eggs before ending subsidy

The Malaysian government has been advised to consider a more flexible or targeted price control mechanism for chicken eggs before taking steps to completely remove the subsidy for the commodity.

Malaysian Consumer Associations Federation (Fomca) chief executive officer T. Saravanan said that price control was an alternative measure to ensure that the poor could still buy eggs at a low price and allowed the market to operate freely for those who could afford to buy at the current price.

He said Fomca believed that providing subsidies was a temporary measure to ensure that basic goods remained affordable for consumers during a supply crisis.

However, he added that it must be done carefully so as not to negatively affect consumers, especially low-income groups.

"Fomca supports the removal of the chicken egg subsidy, provided that the supply is fully restored and the market price of eggs remains stable without sudden increases," Saravanan noted. "Any drastic changes could impact the cost of living.

"Consumers must be protected by ensuring that egg prices remain reasonable."

He added that the government should look into strengthening the supply chain and improving local productivity to ensure that the supply of chicken eggs remains sufficient in the long term without relying on subsidies.

"This step must be closely monitored to prevent disruptions to food-related prices," Saravanan said. "This is because any increase in the cost of basic food supplies could trigger other chain effects."

- Sinar Daily