THE government is expected to save RM135 million over three months following a targeted reduction in egg subsidies, according to Agriculture and Food Security Minister Datuk Seri Mohamad Sabu.
Speaking in the Dewan Rakyat, Mohamad Sabu (or Mat Sabu) said the reduction in subsidy from 10 sen to five sen per egg, which came into effect on 1 May, is projected to reduce government expenditure by RM45 million each month ahead of the full removal of price controls scheduled for 1 August.
“Egg supply is currently stable and prices in the market remain reasonable,” he said, noting that as of 2 July, monthly production was estimated at 1.75 billion eggs, while domestic demand stood at around 1.06 billion — creating a surplus of approximately 690 million eggs, part of which is exported.
He was responding to a question from Datuk Seri Sh Mohmed Puzi Sh Ali (BN–Pekan), who asked about the fiscal impact of the subsidy adjustment and its implications for prices and the cost of living.
Mohamad stressed that the reduction and eventual removal of subsidies would not disrupt the egg industry, which he said is currently benefiting from lower chicken feed prices and stable market conditions.
“This move allows the government to reallocate funds to programmes that benefit the public more directly,” he added.
The minister also noted that the inflation rate for eggs dropped by 5.3 per cent in May, although not all egg grades experienced the same reduction, as the market continues to adjust under the new subsidy mechanism.
To ensure supply and pricing stability, Mohamad said the Ministry of Agriculture and Food Security (KPKM), together with the Ministry of Domestic Trade and Cost of Living, will maintain close monitoring of the market.
“This is to prevent supply issues and stop profiteering that could burden consumers,” he said. - July 22, 2025
