PRICE controls and subsidies for chicken eggs will be phased out starting tomorrow, as part of a retargeting of subsidies under the government’s initiative.
The Ministry of Agriculture and Food Security (KPKM) announced in a statement that the chicken egg subsidy rate will be reduced from RM0.10 to RM0.05 per egg starting tomorrow, while the full subsidy will end on August 1.
According to the statement, the decision was made after considering the industry's commitment to ensure sufficient and stable egg production, as production costs have stabilised.
"This was proven when the supply of eggs during the Aidilfitri festive season was sufficient at competitive prices," the statement read.
The ministry added that from February 2022 to December 2024, the government has spent almost RM2.5 billion in subsidies to the egg producing industry to cover the increased production costs following the Covid-19 pandemic and the effects of the war between Ukraine and Russia which caused the import prices of corn and soy to soar.
"The government also takes into account that providing subsidies and price controls for too long is unsustainable for the survival of the local egg producing industry as well as the country's finances".
The retargeting measure, according to the Ministry of Finance, is also considered fairer because the previous subsidy was also enjoyed by foreigners and high-income earners.
“The results of this subsidy savings can later be channeled to the financing of certain projects for the well-being of the people,” the ministry added.
To minimise the impact on the cost of living, the Ministry of Domestic Trade and Cost of Living (KPDN) will implement intervention measures including introducing special grade eggs at reasonable prices.
Chicken egg subsidies were introduced in February 2022 to stabilise egg prices during supply shortages.
In October last year, the ministry stated that the subsidy would be reviewed if egg supply stabilised. – April 30, 2025
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