Malaysia to end egg subsidy on Aug 1

From February 2022 to December 2024, the government spent nearly RM2.5bil on egg subsidies to the industry to cover rising production costs due to the Covid-19 pandemic and the impact of the Ukraine-Russia war on the import prices of soybeans and corn.

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A worker collects eggs at a poultry farm in Mentakab, Malaysia's Pahang state on November 29, 2022. Malaysia is scrambling for eggs following a crippling shortage due to soaring prices of chicken feeds, consumers and farmers said November 29. PHOTO: AFP

April 30, 2025

PETALING JAYA – The government has agreed to end the price control on chicken eggs and reduce the egg subsidy rate from RM0.10 to RM0.05 per egg, effective May 1, 2025.

Subsequently, the egg subsidy will be completely abolished on August 1, 2025.

From February 2022 to December 2024, the government spent nearly RM2.5bil on egg subsidies to the industry to cover rising production costs due to the Covid-19 pandemic and the impact of the Ukraine-Russia war on the import prices of soybeans and corn.

The government has also taken into account that the prolonged period of price controls and subsidies is unsustainable for the continuity of the local egg production industry and the country’s finances.

“The decision was taken after taking into consideration the industry’s commitment to ensure enough supplies and costs which had stabilised,” said the Agriculture and Food Security Ministry in a statement on Wednesday (April 30).

“This was proven during the Hari Raya celebration, where there were enough supplies with competitive prices.

“Furthermore, the subsidies are not fair as it is being enjoyed by foreigners and those who are in the high-income bracket.

Among other steps taken were the industry itself has agreed to introduce special grade eggs which are reasonable.

The people could get more competitively priced eggs through the Madani Agro Sales, the Federal Authority on Agriculture Marketing (Fama), and the Farmers Organisation Authority.

The ministry said it will increase the enforcement of the prices through the Price Control Act and Anti Profiteering 2011(AKHAP 2011) to eliminate any profiteering activities or price manipulation by irresponsible traders.

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