Egg Subsidy: A Step Towards Fiscal Sustainability, Public Wants Affordable Prices

KUALA LUMPUR, April 30 (Bernama) -- The government's decision to reduce the egg subsidy starting May 1, ahead of a complete abolishment on Aug 1, has been described as a move to ensure the country's fiscal sustainability.

According to the PERAK Malay Hawkers and Small Traders Association deputy president Zahari Abd Murad, the move is also a step towards promoting a more open market.

However, he said the implementation must be accompanied by effective support mechanisms to protect low-income groups from the impact of rising prices.

"The government should focus on individuals' net spending rather than household income. There are concerns that ending the egg subsidy will have severe repercussions on the B40 group and small traders, as eggs are one of the most affordable protein sources," he told Bernama.

In PAHANG, trader Xavier Arumanathan, 60, said the subsidy adjustment at this point does not have a significant impact, as the country's egg supply is sufficient to meet the needs of the Malaysian population.

"At the moment, egg production in the country is more stable, so prices are bound to go down when there's more supply. Grade B eggs are priced at RM8.10, while Grade C eggs are RM7.50," he said, adding that earlier this year, traders were selling Grade C eggs for as low as RM6 per tray.

A private sector employee in TERENGGANU, Siti Rohaniza Razali, 44, understands that leakage is one of the reasons behind the government's decision to remove the egg subsidy but calls on the government to implement the move effectively without burdening the lower-income population.

Meanwhile, in KEDAH, Nur Zila Baharom, 44, from Jitra—who sells egg-based dishes—said that over the past few years, the fluctuating prices of eggs have made it difficult for her to secure a steady supply for her business.

"If the government's move can stabilise prices and ensure a consistent supply of eggs, then I'm in favour of it…I can also get eggs at more competitive prices through government-organised sales programmes," she told Bernama.

Razilah Rahmat, 45, a mother of five children in MELAKA, said that eggs are an essential and budget-friendly item for her family.

"If we want to save money, eggs are the go-to choice. I hope the new price doesn't soar to the point of burdening families with many children," she said.

A food stall operator in PERLIS, Azura Zulkifli, 41, said a slight increase in egg prices would not significantly affect her business from now on. She added that she is optimistic about the government and authorities' control measures in tackling the challenges of rising cost of living.

Meanwhile, in PENANG, egg supplier Ahmad Azmer Mirasa, 34, said he expects an increase in prices but believes that prices may also come down—as evident during the recent Ramadan month—as they are influenced mainly by consumer demand and production levels at the farm.

A restaurateur in SABAH, Az Ramlee Az Salleh, 45, from Sepanggar, lamented that traders like him struggled to secure a stable supply of eggs and were forced to purchase more expensive premium-grade eggs such as Omega eggs.

"When egg prices are high, food vendors like us have no choice but to raise the prices of egg-based dishes. Eggs, especially Grade B and C, are also hard to come by," he said, adding that he uses between 30 and 50 eggs daily for his business.

"If the government is ending the egg subsidy, there must be a way to help us manage these challenges," he added.

In SARAWAK, Teo Chun Ping, 55, said the government's move presents a new challenge for small traders struggling with rising operating costs.

"We have to revise our business strategy, such as offering promotions or discounts on other products to retain our customers," the retailer added.

-- BERNAMA