As RM3 hike looms, Bintulu's small businesses say egg subsidy removal puts pressure on food, childcare costs

Malay Mail

01-05-2025

BINTULU, May 1 — The gradual reduction and upcoming removal of egg subsidies is expected to significantly impact childcare centres, home-based businesses, and consumers in Sarawak, especially with egg prices already higher in the state compared to Peninsular Malaysia.
Chairperson of the Persatuan Pengasuh dan Pendidik Awal Kanak-Kanak Bintulu (PAKB), Maraini Jaafar, 57, said that Grade B eggs are currently priced at RM12.60 per tray in Sarawak, compared to RM8.10 in the peninsula.
With subsidies being phased out, prices are expected to increase by RM0.05 to RM0.10 per egg starting today, which is equal to a hike of RM1.50 to RM3 per tray.
'By August 2025, we anticipate a 50 per cent rise in egg prices. It's becoming more difficult to obtain local Grade B eggs due to supply restrictions,' she said.
For Taska operators who prepare up to four meals a day for young children, eggs have long been a go-to protein source due to their affordability.
But the sharp increase in prices, alongside rising costs for vegetables, fruits, and wet goods, which have jumped by up to 35 per cent, is adding serious strain.
'Though it seems like a small price change, it affects our entire meal planning and budget. Operational costs are rising rapidly,' said Maraini, who runs Taska Permata Kasih and Taska Penyayang Mama.
She warned that the burden won't just fall on low-income (B40) families but also on middle-income childcare providers often excluded from financial assistance due to gross income thresholds that don't reflect real operating costs.
The expected price hike may also drive up costs for other egg-based products such as pastries, bread, and local kuih, she added.
Maraini called for a more equitable subsidy model and proposed targeted allocations for essential services like childcare, where nutrition for growing children is a priority.
Meanwhile, Francis Ngu, a grocery store operator, said the impact of the subsidy removal brings little change as regular eggs have long been missing from the local market.
'Regular grade eggs are rarely seen on shelves, with only small quantities occasionally available. Instead, higher-priced options such as selenium-enriched and organic eggs dominate the market.
'When they do appear, it's just a few trays here and there. Mostly what's available is grade AAA eggs that cost up to RM20 per tray,' he added.
However, Ngu warned that the move may provide businesses a convenient reason to raise prices across related products, deepening consumer frustration.
The decision to remove the subsidy, part of a larger policy shift to allow egg prices to float according to market rates, was announced with the aim of stabilising supply and ensuring fair competition.
However, in places like Bintulu, where consumers already face inflated prices and limited choices, the policy change has deepened frustration rather than eased burdens.
For home-based baker Mommy Sam, who operates 'Mommy Sam Home Bakery', the change could jeopardise her operations.
Eggs are a staple in her cakes and pastries, and even a small cost increase will affect her margins.
'Raising prices could drive away customers. Malaysia's market is very price-sensitive,' she said.
She added that smaller players like herself could be squeezed out of the market, as larger commercial bakeries can better absorb cost increases, creating an uneven playing field.
'The gap between us and big bakeries could widen,' she said, calling for greater support for small-scale food entrepreneurs navigating the challenging economic climate. — The Borneo Post