Targeted Egg Subsidy To Save Gov't RM135 Million Over Three Months — Mohamad

KUALA LUMPUR, July 22 (Bernama) -- The reduction in egg subsidies from 10 sen to five sen per egg, which took effect on May 1, is expected to save the government RM135 million over a three-month period, ahead of the full removal of price controls on Aug 1.

Agriculture and Food Security (KPKM) Minister Datuk Seri Mohamad Sabu said the move helps reduce government spending by RM45 million each month.

He said egg supply is currently stable and prices in the market remain reasonable.

“As of July 2, estimated monthly production was 1.75 billion eggs, while domestic demand is around 1.06 billion. This means there’s a surplus of about 690 million eggs, some of which are exported,” he said during the Dewan Rakyat’s question-and-answer session today.

He was replying to a question from Datuk Seri Sh Mohmed Puzi Sh Ali (BN–Pekan), who asked about the savings from the subsidy adjustment and its impact on prices and cost of living.

Mohamad assured that the reduction and removal of subsidies would not disrupt the egg industry, which is showing positive signs, including lower chicken feed costs.

He said the move allows the government to reallocate funds to programmes that benefit the public more directly.

He also noted that the inflation rate for eggs dropped by 5.3 per cent in May, although not all egg grades saw the same decrease due to market adjustments following the new subsidy system.

To maintain stable supply and pricing, he said KPKM and the Domestic Trade and Cost of Living Ministry will closely monitor the situation.

“This is to prevent supply issues and stop profiteering that could burden consumers,” he added

-- BERNAMA