Price controls for eggs, chicken will be lifted to ensure sufficient supply

KUALA LUMPUR: The temporary price controls for eggs and chicken will be lifted so that the local market can function freely in ensuring a sufficient supply of these food items in the market.

Prime Minister Datuk Seri Anwar Ibrahim said that the details of these measures will be announced by the Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu in two weeks.

"Since February 2022, the issue of eggs and chicken subsidies which were usually introduced during the festive seasons, has continued being borne by the government that as much as RM3.8 billion was spent for the subsidies (which are being enjoyed) including by the wealthy and foreigners.

"Now that the prices of chicken and eggs are starting to stabilise, the government is considering floating them based on prices which are lower than the government's float price. The Ministry of Agriculture and Food Security has consulted producers and ensured that there will be no unreasonable increases by companies and traders," he said.

He said this when tabling the Malaysia MADANI Budget 2024 in the Dewan Rakyat today.

Apart from that the government will continue to improve the targeted electricity subsidy approach according to the level of electricity consumption and hopes that the decision will give the right signal to consumers to practice energy efficiency and frugal practices in their daily electricity use.

Anwar added that the government had also agreed to continue giving electricity bill rebates of up to RM40 per month to hardcore poor households with an allocation of RM55 million, in addition to the exemption of electricity bill account deposit payments in one's own name.

In the meantime, Anwar said that the government intends to rationalise the diesel subsidy in phases to prevent leakage and smuggling.

He said that this is because according to user data, the sale of subsidised diesel has increased by up to 40 per cent since 2019, while the number of vehicles using diesel has only increased by less than three per cent, which means that there is a possibility of serious smuggling activities due to Malaysia's cheap diesel prices.

"Subsidised diesel prices will continue to be enjoyed by selected users such as freight transport companies while other users will be charged higher prices, at the same time reducing subsidy leakage but at the same time reducing the impact of prices of goods for the people," he said.

As an enforcement measure, Anwar said that the Ministry of Domestic Trade and Cost of Living will implement strict and comprehensive control measures, apart from strengthening the capacity and functions of the Malaysian Competition Commission (MyCC) with an allocation of RM10 million.

-- BERNAMA