Bakers, hawkers in Malaysia say they will not crack under pressure without egg subsidy

Straits Times

07-05-2025

Malaysia has announced that it will end egg subsidies on Aug 1, 2025. ST PHOTO: HAZLIN HASSAN
Bakers, hawkers in Malaysia say they will not crack under pressure without egg subsidy
GEORGE TOWN - Bakeries and local hawkers in Penang, Malaysia will absorb any extra cost after the removal of the egg subsidy to ensure their customers are happy.
Ms Phor Yok Eng, 62, who has been selling char kway teow for 26 years, said she uses five trays of eggs every day.
'I buy them daily at the local market here near my stall. I do offer the option of servings without eggs, which is cheaper, but many still prefer it with eggs, as it's tastier.
'I charge 5.50 ringgit (S$1.70) per plate without an egg and an extra 1 ringgit with an egg.
'While I know my pricing is considerably cheaper than other places, people will still grumble if I suddenly increase the price,' she said when met at her stall in Air Itam.
Ms Phor said when she raised her prices two years ago, she received backlash from customers.
'You must be mindful of your customers, as many of them are retirees... The removal of the price control on chicken eggs will affect me, but I will have to absorb it,' she said.
Ms M. Tan, 34, who runs a bakery selling an array of pastries and cakes, said she uses 30 trays of eggs a week for baking.
'Eggs are our key ingredient after flour... It is in pretty much everything we make at our ­bakery and, usually, each cake requires a few eggs, never just one.
'While it will definitely affect me, I cannot afford to raise prices.
'There is plenty of competition when it comes to cake and pastry shops in Penang, especially on the island. 'If I suddenly raise prices, I will lose customers as they can easily go somewhere else.'
Ms Tan said she would rather take a profit cut than risk losing her customers.
'It will add up to a hefty amount but I will manage it,' she said.
The Agriculture and Food Sec­urity Ministry announced recently that the price control on ­chicken eggs had been lifted, with subsidies reduced from 10 sen to 5 sen per egg, effective May 1.
The egg subsidy will be completely abolished on Aug 1.
From February 2022 to Decem­ber 2024, the government spent nearly 2.5 billion ringgit on egg subsidies to cover rising production costs due to the Covid-19 pandemic and the impact of the Ukraine-Russia war.
The government has also taken into account that the extended duration of price controls and subsidies is not sustainable for the ongoing viability of the local egg production industry and the nation's finances. THE STAR/ASIA NEWS NETWORK
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