The Malaysian government has ended its subsidies and chicken price controls (ceiling) with effect from 1 November 2023.
The removal of the subsidy will allow the government to channel the funds to other more meaningful social assistance programs.
Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu said that government issued RM3.8 billion (US$810 million) in subsidies to cover the cost of chicken and eggs since February 2022. The removal of subsidies is to reduce the unnecessary exploitation by high-income earners and non-Malaysians.
Sabu added, “I believe that when the government decides to end the subsidy and chicken price control, chicken prices will remain stable as long as the input cost in the chicken production is still under control… the government and market monitoring bodies may need to play an important role in monitoring the activities of chicken traders and impose strict measures if needed in the event of market manipulation.”
The government will then focus on assistance to be provided to the lower-income groups, and ensure that chicken meat can be accessed at reasonable prices for all.
Currently, the supply of eggs and chicken have stabilised and the retail price is far below the ceiling prices fixed by the government earlier on.