KUALA LUMPUR: The government's move to float the price of chicken and eggs in the market is to ensure that only eligible citizens, and not foreigners or super-rich groups, benefit from the subsidies provided.
Prime Minister Datuk Seri Anwar Ibrahim said that since 2022, the government has allocated a total of RM3.7 in subsidies to cover the cost of chicken and eggs.
This has resulted in approximately 3.5 million foreigners and 10 per cent of the wealthy in the country to also enjoy the benefit of these subsidies.
"Looking at the current market prices, if the price is below the ceiling price, and chicken and eggs in Thailand are cheaper than in Malaysia, then it's time for us to float the prices.
"If there is a shortage, we will supplement from the stockpile. The Agriculture and Food Security Ministry has 30 per cent of the chicken and egg stock, and I have instructed the minister to buy from Thailand if needed," he said during the Minister's Question Time in the Dewan Rakyat today.
He was responding to a question from Datuk Rosol Wahid (PN-Hulu Terengganu) who sought the government's assurance that the move to float the price of chicken and eggs will not burden the people who are already dealing with a high cost of living.
When tabling the Budget 2024 last Friday, the prime minister said the government is considering floating the price of both items as the supply has started to stabilise and the current market price is below the ceiling price.
In his reply today, Anwar said the decision was made after considering various factors through discussions among several ministries, such as the amount of savings in subsidies and the capacity of the Farmer's Organisation Authority (LPP) and the Federal Agricultural Marketing Authority (FAMA).
However, he said the Agriculture and Food Security Minister would announce further details soon.
Responding to Rosol's supplementary question regarding the impact of this measure on the Consumer Price Index, Anwar said the current market prices for chicken and eggs, including wholesale, were still considered low.
To a supplementary question from Ahmad Fadhli Shaari (PAS-Pasir Mas), Anwar said that the government's interference in regulating the price of chicken and eggs was one of the reasons why both local and foreign firms, including those from Thailand, were hesitant to invest in Malaysia's poultry industry.
"Government intervention in terms of pricing makes them unwilling. So now, if we leave it to the market (floating prices) and people face difficulties, we will provide external support, which I think will encourage companies to invest.
"Investors say they cannot invest because they don't know to what extent the government can intervene, so we are making some adjustments to our approach," he said.
Regarding concerns about the rising chicken and egg prices, Anwar said the issue can be addressed through various means, including the provision of the Rahmah Cash Aid (STR).
"That is why we increased the allocation for STR from RM8 billion to RM10 billion (in Budget 2024), considering the people's hardship.
"So it's not true that the government doesn't care (about the people's struggle). In the current financial constraints, the government has reduced expenses to increase allocations for the people," he said.
-- BERNAMA
Bernama
Tue Oct 17 2023
PM Datuk Seri Anwar Ibrahim said that since 2022, the government has allocated a total of RM3.7 in subsidies to cover the cost of chicken and eggs. - Jabatan Penerangan Malaysia (JPM)
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