By DayakDaily Team
KUCHING, April 30: The federal government will terminate the chicken egg subsidy starting Aug 1.
In a statement today, the Ministry of Agriculture and Food Security (KPKM) informed that effective tomorrow (May 1), the subsidy rate will be reduced from RM0.10 to RM0.05 per egg, before being completely removed.
At the same time, price controls on chicken eggs will also be lifted.
“This decision takes into account the industry’s commitment to maintaining sufficient and stable egg production, as production costs have now stabilised.
“This was evident during the recent Aidilfitri celebrations, when egg supply remained adequate and prices were competitive,” the ministry said.
KPKM explained that the long-term provision of subsidies and price controls is unsustainable for both the local egg production industry and national finances.
Between February 2022 and December 2024, the government spent nearly RM2.5 billion on subsidies to offset rising production costs, exacerbated by the Covid-19 pandemic and the Ukraine-Russia conflict, which drove up the cost of imported soybean and maize feed.
The ministry added that retargeting subsidies is a fairer approach, as current subsidies are also enjoyed by foreigners and high-income groups.
“Savings from this measure could be redirected toward targeted initiatives to enhance public welfare in line with Madani values,” it added.
To cushion the impact on consumers, KPKM and the Ministry of Domestic Trade and Cost of Living (KPDN) will implement several intervention measures. These include industry agreements to introduce a special-grade egg at an affordable price.
Consumers can also continue purchasing eggs at competitive prices through the Agro Madani and Rahmah Sales initiatives nationwide, including at all Federal Agricultural Marketing Authority (FAMA) and Farmers’ Organisation Authority (LPP) outlets.
KPDN will also intensify enforcement efforts under the Price Control and Anti-Profiteering Act 2011 (AKHAP 2011) to prevent price manipulation by unscrupulous traders.
For any queries or complaints regarding egg supply, the public can contact KPKM via email at pro@kpkm.gov.my or the ministry’s hotline at 03-8000 8000. — DayakDaily
