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Govt restructures egg subsidy to boost welfare initiatives

Govt restructures egg subsidy to boost welfare initiatives

by AKMAR ANNUAR
THE government will restructure its egg subsidy mechanism starting Aug 1, replacing the blanket subsidy with a more targeted approach that prioritises sustainability and long-term public welfare.
The Agriculture and Food Security Ministry (KPKM) said the new framework is part of the phased subsidy rationalisation agenda under the Malaysia Madani initiative.
To mitigate price pressures, the egg industry has agreed to introduce a special-grade egg category at more affordable prices.
Competitive rates will also be made available through nationwide Agro Madani and Jualan Rahmah sales, including at outlets run by the Federal Agricultural Marketing Authority (FAMA) and the Farmers' Organisation Authority (LPP).
KPKM said the savings generated from the revised subsidy scheme will be redirected to other welfare programmes aligned with Madani values.
Between February 2022 and December 2024, the government spent nearly RM2.5 billion to subsidise eggs, primarily to stabilise supply and support the public during the Covid-19 pandemic and global supply disruptions.
With current market conditions more stable, the ministry said it is now appropriate to implement a more focused model.
'The restructuring reflects our confidence in the industry's ability to maintain stable and sufficient egg production,' it said in a statement.
To prevent profiteering, the Domestic Trade and Cost of Living Ministry (KPDN) will continue monitoring compliance under the Price Control and Anti-profiteering Act 2011.
'Strict enforcement is necessary to ensure retail prices remain fair and reasonable for consumers,' the ministry added.
The government said the decision to restructure the subsidy mechanism reflects its ongoing commitment to safeguarding public wellbeing.
It also stated that the Madani administration remains attentive to the needs of the people and will continue to prioritise policies that deliver inclusive benefits across all segments of society.
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