No more egg subsidy on Aug 1

The government has decided to slash the egg subsidy by half before discontinuing it completely on Aug 1.

The Agriculture and Food Security Ministry announced that price controls on eggs will be lifted, and the subsidy will be reduced from RM0.10 to RM0.05 per egg, effective tomorrow, followed by the full withdrawal in August.

The decision was made after considering the industry's commitment to ensuring sufficient and stable egg production, following stabilised production costs.

“This was evident during the recent Hari Raya Aidilfitri festive season, where supply remained sufficient and prices were competitive,” the statement added.

According to the ministry, the government has taken into account that prolonged price controls and subsidies are unsustainable for the long-term viability of the local egg production industry and the country's finances in making this decision.

"From February 2022 to December 2024, the government has spent nearly RM2.5 billion on egg subsidies to the industry, covering increased production costs due to the Covid-19 pandemic and the impact of the Ukraine-Russia war on the prices of imported soybeans and corn," the statement said.

The ministry also explained that restructuring the subsidy system is fairer. This is because both foreign nationals and higher-income groups also enjoy the subsidy.

The ministry noted that the savings from this decision would be used to fund specific projects aimed at improving the welfare of the people, in line with Madani values.

Enforcement and mitigation

The ministry also announced that various intervention measures will be implemented in collaboration with the Domestic Trade and Cost of Living Ministry to mitigate the impact of this decision on the public’s cost of living.

Among the measures, the government assured that the industry has agreed to introduce special-grade eggs at reasonable prices.

Consumers will also be able to access eggs at more competitive prices through the Agro Madani and Rahmah Sale initiatives nationwide, including at all outlets of the Federal Agricultural Marketing Authority and the Farmers’ Organisation Authority.

The Domestic Trade and Cost of Living Ministry will step up enforcement through continuous monitoring under the Price Control and Anti-Profiteering Act 2011 to prevent price manipulation and profiteering by unscrupulous traders.

Any information or complaints regarding the egg supply issue can be directed to the official Agriculture and Food Security Ministry email at pro@kpkm.gov.my or its Putrajaya headquarters hotline at 03-8000 8000.

- Bernama

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