KUALA LUMPUR, Oct 13 — The temporary price controls for eggs and chicken will be lifted so the local market can function freely in ensuring a sufficient supply of these food items.
Prime Minister Datuk Seri Anwar Ibrahim said the details of these measures will be announced by Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu in a fortnight.
“Since February 2022, the issue of eggs and chicken subsidies, which were usually introduced during the festive seasons, has continued being borne by the government where much as RM3.8 billion was spent for the subsidies (which are being enjoyed) including by the wealthy and foreigners.
“Now that the prices of chicken and eggs are stabilising, the government is considering floating them based on prices lower than the government’s float price. The Ministry of Agriculture and Food Security has consulted producers and ensured there will be no unreasonable increases by companies and traders,” he said.
Anwar was speaking during the Malaysia Madani Budget 2024 tabling in the Dewan Rakyat today.
Meanwhile, the government will continue to improve the targeted electricity subsidy approach according to the level of electricity consumption and hopes the decision will signal consumers to practice energy efficiency and frugal practices in their daily electricity use.
He added the government had also agreed to continue giving electricity bills up to RM40 in monthly rebates to hardcore poor households with a RM55 million allocation, as well as exempt electricity bill account deposit payments in one’s own name.
In the meantime, the government intends to rationalise the diesel subsidy in phases to prevent leakage and smuggling.
According to user data, the sale of subsidised diesel has increased by up to 40 per cent since 2019, while the number of vehicles using diesel has only increased by less than three per cent, which means that there is a possibility of serious smuggling activities due to Malaysia’s cheap diesel prices.
“Subsidised diesel prices will continue to be enjoyed by selected users like freight transport companies while other users will be charged higher prices, at the same time reducing subsidy leakage but at the same time reducing the impact of prices of goods for the people,” Anwar said.
As an enforcement measure, the Ministry of Domestic Trade and Cost of Living will implement strict and comprehensive control measures, apart from strengthening the capacity and functions of the Malaysian Competition Commission (MyCC) with a RM10 million allocation.
— Bernama
