Govt Expected To Save RM135 Million From Removing Egg Subsidy
The government expects to save RM135 million over three months following the reduction in egg subsidies from 10 sen to five sen per egg, which took effect on May 1. The move comes ahead of the complete removal of price controls scheduled for August 1.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu told the Dewan Rakyat that the subsidy cut translates into monthly savings of RM45 million. He said the egg supply remains stable and current market prices are still considered reasonable.
Mohamad was responding to a question from Datuk Seri Sh Mohmed Puzi Sh Ali (BN–Pekan), who asked about the financial and market impact of the subsidy adjustment.
“As of July 2, the estimated monthly production was 1.75 billion eggs, while domestic demand stood at around 1.06 billion. This leaves a surplus of approximately 690 million eggs, some of which are exported,” he explained.
He also gave assurance that the subsidy removal would not disrupt the egg industry, which he said is already showing signs of resilience, helped by lower chicken feed costs.
Mohamad added that the reallocation of funds from subsidy savings would support public-focused programmes. He highlighted that the inflation rate for eggs in May dropped by 5.3%, although price changes varied across different egg grades due to the market adapting to the new system.
To maintain price stability and prevent profiteering, the Agriculture and Food Security Ministry and the Domestic Trade and Cost of Living Ministry will continue joint monitoring efforts.
