October 30, 2023

Malaysia to stop subsidies and price control for chicken in November 1

 

 

Malaysia's Agriculture and Food Security Minister, Datuk Seri Mohamad Sabu, said on October 30 that the Malaysian government has agreed that subsidies and price control for chicken will be completely discontinued starting on November 1.

 

He said chicken eggs graded A, B and C however, will continue using existing subsidy mechanisms.

 

"Since February 2022, the government has borne RM3.8 billion for egg and chicken subsidies," Mohamad said. "The rationale for ending subsidies in bulk for chicken is to reduce the leakage of subsidies which at this point are also enjoyed by foreigners and high income groups.

 

"The end of chicken price controls also supports the sustainability of the local chicken production industry.

 

"In addition, through this method, the government will also be able to increase various socio-economic initiatives and people's welfare including cash assistance."

 

Mohamad added thay the termination of the chicken subsidy has taken into account the current situation and trend of supply, farm prices and stabilised chicken production costs, which contributes to the current market price being below the ceiling price of RM9.40 (US$1.97).

 

"In this regard, the government will ensure that the selling price for the chickens that will be floated continues to be at a reasonable rate," he said.

 

"In addition, the government will continue to work with all parties to ensure that the supply status and price of chicken in the farm is stable and does not burden the people, and that there is no profiteering activity along the supply chain.

 

"The government will continue to focus on empowering the poultry farming industry through incentive assistance in terms of financing revolving funds for small and medium-sized farmers and micro credit schemes as working capital assistance for community farmers as well as a programme to transform open chicken coops into closed chicken coops."

 

This step will provide an increase in terms of supply access directly from community farmers to wholesalers in the market.

 

At a press conference, Treasury secretary-general Datuk Johan Mahmood Merican revealed that the government will save about RM100 million (US$21 million) per month with the discontinuation of chicken subsidy.

- Malay Mail