Starting from Wednesday, November 1, chicken prices in Malaysia will no longer be determined by government controls and subsidies. The move to end price controls and subsidies is aimed at reducing leakages enjoyed by foreigners and high-income earners, while supporting the sustainability of the local chicken production industry. The government hopes that this measure will allow them to increase various socio-economic initiatives and improve people’s welfare, including cash assistance.
While this announcement comes as a relief to traders, some have expressed concerns about potential price increases. They argue that the Ministry of Domestic Trade and Cost of Living should continue monitoring prices to prevent traders from taking advantage and burdening consumers. Traders in Perlis, Mohammad Hafiz Zamri and Mardiana Mohd, agree that while subsidy leakage needs to be avoided, it is important to ensure that prices remain affordable for consumers.
However, other traders believe that the termination of subsidies and price controls is unlikely to result in significant price increases for consumers. Sazali Ramli, a chicken trader in Selangor, explains that current prices are already below the controlled price of RM9.40 per kilogramme. While some price increases may occur, they are not expected to exceed RM10 per kilogramme.
Mohammad Shafiq Fikri Rosli, a chicken wholesaler, also predicts a minimal increase in chicken prices, estimating an increase of only RM0.20 to RM0.30 per kilogramme. He believes that the government can still intervene to prevent prices from rising too high.
Nik Azwar Nik Dea, a chicken trader from Pahang, has no issue maintaining the current price of RM9.40 as long as wholesalers do not drastically raise their prices. Similarly, fresh chicken supplier P. Vikram from Perak welcomes the government’s decision and views it as a relief for traders.
While many traders are supportive of the move, they also emphasize the importance of ensuring that the price of corn feed for poultry is lowered to keep chicken prices affordable. Ahmad Nazri Che Omar, chairman of the Pasar Siti Khadijah Petty Bumiputera Traders Association in Kelantan, hopes for continued enforcement to protect consumers from potential price hikes as a result of the termination of subsidies and price controls.
Food trader Samiha Abdul Hadi echoes the sentiment, urging chicken traders not to increase prices arbitrarily. In Kedah, roti jala and yellow glutinous rice sellers Nurzaila Abd Nasir and Nur Hazwani Ahmad, who rely on large quantities of chicken for their businesses, hope that the Rahmah Sale will be increased to maintain affordable prices. Similarly, chicken trader Mohd Shafri Mazlan in Penang clarifies that the floating of chicken prices is not a license for traders to raise prices at will but can help them cover the costs they currently face.
Agriculture and Food Security Minister Datuk Seri Mohamad Sabu has confirmed that the government will continue subsidizing grade A, B, and C eggs according to the existing mechanism. However, chicken prices will now be determined by market forces rather than government control.
