Egg subsidy: Consumer groups urge strict monitoring by authorities

The Star

30-04-2025

KUALA LUMPUR: Consumer groups have urged the Domestic Trade and Cost of Living Ministry to ensure that no profiteering activities occur, following the government's decision to end the egg subsidy, by adopting a more proactive approach in monitoring retail egg prices nationwide.
Federation of Malaysian Consumers Associations (Fomca) chief executive officer Dr T Saravanan said this includes strict monitoring of the Consumer Price Index (CPI), taking firm action against opportunistic price hikes, while ensuring that pricing mechanisms remain transparent and fair.
"Fomca supports this policy direction, as a step towards a more sustainable and targeted subsidy system.
"However, it must be accompanied by robust protections for the vulnerable groups, stable supply chains, and continuous market monitoring, to ensure that this move does not inadvertently burden consumers,' he said, when contacted by Bernama on Wednesday (April 30).
The Agriculture and Food Security Ministry previously announced that the government will reduce the egg subsidy from RM0.10 to RM0.05 per egg effective Thursday (May 1), before fully withdrawing the subsidy on Aug 1.
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The ministry also announced that price controls on eggs would be lifted, citing the industry's commitment to ensuring sufficient and stable egg production, following the stabilisation of production costs.
To prevent panic buying or artificial shortages, which could drive up prices, Saravanan said that the government must ensure a consistent and sufficient supply of eggs in the market by working closely with producers, distributors, and retailers.
He also stressed the importance of implementing proper safety nets, particularly for the B40 and vulnerable groups, who are likely to be more affected by price adjustments.
Sharing a similar sentiment, Consumers' Association Penang (CAP) president Mohideen Abdul Kader emphasised that continuous monitoring of egg prices in the market is crucial to ensure that traders do not raise prices beyond the actual impact of the subsidy removal.
"Without strict controls, consumers, especially those in the low-income group, will be the primary victims in the supply chain. The ministry must also be ready to take firm action against price manipulation and provide an efficient, responsive channel for consumer complaints,' he said.
However, Mohideen suggested that egg price controls be temporarily maintained during the transition period after the subsidy ends to protect consumers from potential unreasonable price hikes.
Meanwhile, small trader Nor Hayati Abd Karim, 43, hopes that the price of chicken eggs in the market will not increase suddenly, as they are one of the key ingredients she uses in making kuih-muih (savoury treats or snacks).
Nor Hayati, who sells a variety of cookies and savoury treats for festive events, also hopes that the supply of chicken eggs in the market remains stable.
Consumer Hendri Yanti Zainal Arifin, 41, also urged the government to closely monitor egg prices in the market to prevent sudden increases, which could burden consumers.
"The government also needs to be proactive in increasing the supply of chicken eggs from local producers, as well as controlling the price of chicken feed, to manage production costs,' she said.
Nurefnita Abdul Razak, 38, said that, as a consumer, she is trying to understand the government's decision to end the chicken egg subsidy, but hoped that the authorities, especially the Domestic Trade and Cost of Living Ministry, would continue to monitor traders and suppliers. – Bernama