KUALA LUMPUR: The move to temporarily remove the ceiling price imposed on eggs and chicken will bolster the country's food security.
Titiwangsa member of parliament Datuk Seri Johari Ghani said the move, as announced during the tabling of the 2024 Budget last Friday, would also allow the local market to function freely.
"We can no longer afford to do things like we used to. The world has changed.
"Countries producing rice, corn and soy among others, are now more into the concept of protectionism.
"In Malaysia, we are facing a shortage of supply, yet we still put price controls.
"In the end, the traders and those involved in the industry do not want to continue the business.
"This, as they feel that every time a subsidy is given, it sometimes did not reach the traders and industry players due to leakages," said Johari when debating the 2024 Budget in Dewan Rakyat today.
Johari, who is also the government's Backbencher's club chairman said that it is crucial to ensure the country's food security is always well-maintained.
"The issue of food security is highly important, especially as the country is facing a rice shortage in the market.
He said the value of food imports to Malaysia has been increasing steadily.
"In 2018, the value stood at RM50 billion, while last year at RM75 billion.
"The amount is expected to increase this year. Up to August, the amount is already RM50 billion.
"It is not a surprise if this year's amount will continue to increase."
He said the increase could be attributed to the commodity prices, expensive food prices, as well as the wakening of the Malaysian Ringgit (RM).
"In 2018, the currency exchange was at RM3.85 per one USD. Now, it is at RM4.70, about 22 per cent strength reduction.
"Hence, the more we import, the more demand for US dollar to import food. This, subsequently pressuring us."