No More Price Control For Chicken, Subsidy Removed For Cooking Oil

No More Price Control For Chicken, Subsidy Removed For Cooking Oil

The government has recently announced the removal of the ceiling price for chicken and chicken eggs. In addition, they have also announced the removal of subsidies for cooking oil in bottles of 2kg, 3kg, and 5kg, starting from 1 July 2022.

In a statement by the Domestic Trade and Consumers Affairs Ministry, this move is intended to help stabilise prices and ensure that there is an adequate food supply in the market for the long term.

The subsidy for cooking oil in 1kg polybag packages, which is sold at RM2.50 per packet, would not be affected.

According to the statement, the previously implemented ceiling price on chicken and eggs was put in place to help alleviate the rising price of the products.

“The government is very concerned with the current situation and is always committed to addressing price and supply issues. The ministry will continue to increase its efforts to help reduce the burden of the people and will not hesitate to enforce existing laws under the jurisdiction of the ministry, such as the Price Control and Anti Profiteering Act 2011 and the Control of Supply Act 1961, to ensure that the price and supply issues are under control,” says the statement.

Currently, the ceiling price for standard chicken is set at RM8.90 per kg in the Peninsular Malaysia.

However, once the ceiling price is removed, Domestic Trade and Consumers Affairs Minister Datuk Seri Alexander Nanta Linggi said the price of chicken is expected to be between RM10 and RM12 per kg.

“The livestock farmer groups told me that chicken prices will indeed go up a bit after the subsidy is removed. It will be around RM10 or so per kg, but it won’t be as high as RM12.50 per kg,” he said.

The ceiling price was originally implemented on 5 February 2022, and subsequently extended to 30 June 2022. In order to protect its supply of food, Malaysia has also implemented a ban on chicken exports from 1 June 2022. Said export ban has had a severe effect on the country’s neighbours such as Singapore, which sources a third of its chicken supply from Malaysia.

As for cooking oil, the Ministry of Finance has noted that the government is currently subsidising about RM6 per kg. The current price is approximately RM8.50 per kg.

Additionally, the minister has also stated that the subsidies for cooking oil in bottled packaging has reached RM20 million a month.

The government’s move to lift the ceiling price for chicken and eggs and abolish subsidies for bottled cooking oil is in line with the government’s plan to introduce more targeted subsidies and assistance to the needy in coping with rising prices.

Get free weekly money tips!

*Free of charge. Unsubscribe anytime.
newsletter image