EGG SUBSIDY ISSUES IN MALAYSIA

THE EGG SUBSIDY ISSUES in Malaysia viral upon the The Agriculture and Food Security Ministry (KPKM) is reviewing the subsidy for chicken eggs grades A, B and C in October 2024. Their minister said the government is considering ending the egg subsidy to save RM100mil a month in which could be redirected to develop other critical aspects in agro-food sectors. There is proposal has been submitted to the Finance Ministry and Domestic Trade and Cost of Living Ministry. He said the country has spent more than RM3billion since February 2022 in subsidies for chicken and chicken eggs. The subsidy for chicken was terminated on Nov 1 2023 following which that the supply and price of chicken became more stable. When government took the unpopular decision of ending the chicken subsidy reported many people belittled our efforts and saying that the price of chicken would soar. This article in "Anim Agriculture Technology" blog I rewrite few media report on egg subsidy issues in Malaysia.

The NST media respon that 'CAP: Redirect savings from egg subsidy removal to boost food security' regarding the issues. According to Consumers' Association of Penang (CAP) president Mohideen Abdul Kader said the association has voiced its support for the government’s proposal to review the removal of egg subsidies. Its president Mohideen Abdul Kader said the funds saved from the removal of these subsidies should be redirected toward initiatives that enhance the country's food security. He said steps must be taken to reduce the cost of egg production, which can be achieved through the local production of chicken feed and other necessary inputs. For CAP by doing so they believes that production costs can be significantly lowered, making egg production more viable for local breeders and producers. CAP also highlighted the need to encourage local farmers to raise chickens in addition to growing paddy or vegetables, while government agencies should provide marketing outlets for these farmers, ensuring that their products reach consumers effectively. CAP also suggested that those who tend to overconsume eggs should be encouraged to moderate their intake, contributing to a more sustainable demand for poultry products. In June 2024 CAP said the government's initiative to subsidise egg prices should be viewed as a temporary measure, given that long-term subsidies are not sustainable. He said while CAP supported efforts to lower food prices, it urged the government to address Malaysia's deeper, long-standing food security challenges. As earlier the Agriculture and Food Security Minister in his speech at the ministry's monthly assembly said the government is reviewing the removal of egg subsidies in the country. He said savings for these subsidy cuts could be redirected to develop other critical aspects in agro-food sectors. He also said it is high time for the ministry to reevaluate the subsidy given for chicken eggs grade A, B and C. The move is similar to the subsidy removal for chicken on Nov 2023 last year in which had been deemed an unpopular decision.

Bernama reported that 'Removal of egg subsidies may impact low-income families, warns Fomca' among reaction by CAP. The Malaysian government must carefully assess its plan to remove egg subsidies, to avoid adversely affecting consumers, especially those with low incomes said Federation of Malaysian Consumer Associations (Fomca). Its chief executive officer T. Saravanan said for the move to be implemented, the supply and price of eggs in the market must remain steady. Fomca understands that providing subsidies is a temporary measure aimed at ensuring the prices of essential goods remain affordable for consumers during a supply crisis.  However the termination of these subsidies must be done carefully to avoid harming consumers particularly low-income groups. If the government feels it is time to end the subsidies, it must ensure that the supply and prices remain stable without any drastic changes that could impact the cost of living. He also emphasised the need to protect consumer interests by ensuring that egg prices remain reasonable. Before fully ending the subsidies, perhaps the government could consider implementing more flexible or targeted price control and their mechanisms. This would ensure that those who truly need assistance continue to receive help while allowing the market to operate more freely for those who can afford to pay market prices. The government should explore ways to strengthen the supply chain and improve local productivity to ensure a sufficient long-term supply of eggs without relying on subsidies. CAP added that this initiative should also be closely monitored to prevent disruptions in the prices of related food items, as any increase in the costs of essential food supplies could trigger a chain reaction. Earlier the Agriculture and Food Security Minister in his speech at the ministry's monthly assembly said the government is reviewing the removal of egg subsidies in the country. He said savings for these subsidy cuts could be redirected to develop other critical aspects in agro-food sectors. When we made the unpopular decision to end the chicken subsidy, many criticised it, claiming chicken prices would skyrocket. Targetted after the subsidy was removed, chicken prices did not soar, and more importantly, the country saved RM100 million a month from the removal of the chicken subsidy. The government's decision to end the chicken subsidy last year had proven successful, with chicken prices and supply in the market remaining stable until now.

In other respons reported that 'Subsidies can be redirected to enhance food security- CAP' related to this issues. The Consumers' Association of Penang (CAP) has voiced its support for the steps taken by government's proposal to remove the subsidies for eggs. Its president Mohideen Abdul Kader said the funds saved from these subsidies should be redirected toward initiatives that enhance the country's food security. He said steps must be taken to reduce the cost of egg production, which can be achieved through the local production of chicken feed and other necessary inputs. By doing so, CAP believes that production costs can be significantly lowered, making egg production more viable for local breeders and producers. Additionally, according to CAP there is a need to encourage local farmers to raise chickens in addition to growing padi or vegetables. He said government agencies should provide marketing outlets for these farmers and ensuring that their products reach to the consumers effectively. CAP urged those who tend to overconsume eggs to practice moderation in their intake. He said this will contribute to a more sustainable demand for poultry products. Reported ini June 2024 the government's initiative to subsidise egg prices should be viewed as a temporary measure, given that long-term subsidies are not sustainable. He said while CAP supported efforts to lower food prices, it urged the government to address Malaysia's deeper, long-standing food security challenges. Earlier today from the Agriculture and Food Security Minister said the government is reviewing the removal of egg subsidies in the country. He said savings for these subsidy cuts could be redirected to develop other critical aspects in agro-food sectors. He also said it was high time for the ministry to reevaluate the subsidy given for chicken eggs grade A, B and C. Thanks...

By,

M Anem,

Melaka,

Malaysia.

(October 2024).