The government recently announced the removal of the ceiling price for chicken and chicken eggs. Additionally, they also announced the removal of subsidies for cooking oil in 2kg, 3kg and 5kg bottles, effective July 1, 2022.
In a statement from the Ministry of Internal Trade and Consumer Affairs, the move is aimed at stabilizing prices and ensuring an adequate food supply in the market in the long term.
The subsidy for cooking oil in 1kg polybag packages, which is sold at RM2.50 per pack, would not be affected.
According to the release, the price cap previously applied to chicken and eggs was put in place to help mitigate rising product prices.
“The government is very concerned about the current situation and remains committed to resolving price and supply issues. The ministry will continue its efforts to help reduce the burden on the people and will not hesitate to enforce the existing laws under the jurisdiction of the ministry, such as the Price Control and Anti-Profit Law Act 2011. Controls of Supply Act of 1961, to ensure that price and supply issues are under control,” the statement said.
Currently, the ceiling price for standard chicken is set at RM8.90 per kg in Peninsular Malaysia.
However, once the ceiling price is removed, Minister of Internal Trade and Consumer Affairs, Datuk Seri Alexander Nanta Linggi, said the price of chicken should be between RM10-12 per kg.
“Herder groups have told me that chicken prices will indeed go up a bit after the subsidy is removed. It will be around RM10 per kg, but it will not be as high as RM12.50 per kg,” he said.
The price cap was initially implemented on February 5, 2022 and then extended until June 30, 2022. In order to protect its food supply, Malaysia has also implemented an export ban on chicken from June 1, 2022 This export ban had serious consequences. on the country’s neighbors like Singapore, which sources a third of its chicken supply from Malaysia.
As for cooking oil, the Ministry of Finance noted that the government currently subsidizes around RM6 per kg. The current price is around RM8.50 per kg.
In addition, the minister also said that subsidies for cooking oil in bottled packaging have reached RM20 million per month.
The government’s decision to raise the ceiling price for chicken and eggs and remove subsidies for bottled cooking oil is in line with the government’s plan to introduce more targeted subsidies and assistance to the needy to deal with the price increase.
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