Supply of chicken eggs remains stable despite end to subsidies, says Mat Sabu

The Star

6 days ago

KUALA LUMPUR: Malaysians can still purchase a tray of Grade D chicken eggs for under RM10, with supplies remaining stable and prices competitive despite the full removal of subsidies on Aug 1, says Datuk Seri Mohamad Sabu.
The Agriculture and Food Security Minister said the continued availability of more affordable eggs in the market has helped mitigate the impact of the subsidy withdrawal, particularly for lower-income households.
'Grade C and D eggs remain widely available, and in some areas, a tray of 30 can still be bought for less than RM10. This ensures that B40 families are not burdened by rising prices,' he told the Dewan Rakyat on Tuesday (July 22).
'Of course, grades A and B are slightly more expensive, but C and D remain in the market, and that's what consumers are buying. This is the trend we're seeing,' he added.
The government had earlier announced that the price control mechanism for chicken eggs would be lifted and the subsidy reduced from 10 sen to five sen per egg effective May 1, 2025. The subsidy will be removed entirely starting Aug 1.
Mohamad said that from May 31 to July, the reduction in subsidies had already saved the government RM135mil, about RM45mil per month which can be reallocated to other programmes that directly benefit the people.
He gave his assurance that the decision to end subsidies would not disrupt egg supply, citing that monthly production is at around 1.75 billion eggs, while domestic demand stands at 1.06 billion. The surplus of approximately 690 million eggs will partly support exports.
'Egg supply is stable and prices are reasonable. The removal of subsidies will not affect stability because the industry has responded well. We're also seeing a drop in chicken feed costs, which helps,' he said.
To ensure prices remain stable, the Ministry, together with the Domestic Trade and Cost of Living Ministry, will continue to monitor the market and take enforcement action against profiteering or supply disruptions.
He noted that annual inflation for chicken eggs had dropped to -5.3% as of May 2025, although the price dip has not occurred across all grades — likely due to market adjustment and targeted subsidy implementation.
'We're working with all parties, such as breeders, wholesalers, and others and so far, it's been smooth. The situation is stable and well-managed,' he said.
Mohamad was responding to Datuk Seri Sh Mohamed Puzi Sh Ali (BN-Pekan), who had asked how the government would ensure that the removal of subsidies would not burden vulnerable groups, especially the B40.