KUALA LUMPUR: It has been suggested that the government provide cash subsidies for chicken and eggs to the B40 and M40 groups to shield them from the effects of rising prices of these two essential commodities.
This comes in response to the proposal by former Second Finance Minister Datuk Seri Johari Abdul Ghani for the government to readjust the retail price ceiling for chicken and eggs according to fluctuations in the prices of these commodities in the global market.
Johari, who is also the member of parliament for Titiwangsa, said that the adjustment of the price ceiling for chicken and eggs is a long-term solution to address the shortage of these raw materials as global commodity prices for chicken feed continue to increase.
He pointed out that the shortage of chicken and eggs in the country is attributed to the increase in global commodity prices, where the primary sources of chicken feed, namely corn and soybeans, have seen multiple-fold price hikes due to imports.
He added that previously the government had not provided any subsidies to the chicken and egg industry because Malaysia was self-sufficient in the primary raw materials, and the industry did not face any issues.
However, he noted that the government has now allocated RM3.8 billion in subsidies to farmers for chicken and eggs, yet the supply still faces problems.
"In the past, chicken production was very stable, with more than 100 per cent self-sufficiency, and egg production reached up to 110 per cent, enabling Malaysia's chicken and egg industry to export to foreign markets.
"For a long-term solution, I propose that the government adjust the retail price ceiling for chicken and eggs according to the fluctuations in the prices of these commodities in the world market, as the preparation for the increase in commodity prices related to chicken feed, most of which is imported.
"However, when the government adjusts the retail price ceiling for chicken and eggs according to market prices, it must also take care of the B40 and middle M40 groups that will be affected by this adjustment.
"To protect the B40 and M40 groups, the government is advised to provide cash subsidies for chicken and eggs through direct cash transfers to them, with the subsidy amount being determined according to the changes in the retail price ceiling set by the government," he said in a clip that was attached to a thread on X (formerly known as twitter) today.
In addition, Johari, who is also Umno vice president, said that the impact of adjusting the retail price ceiling according to the fluctuations in the prices of the world commodity market and providing direct subsidies to the target groups can stabilise the chicken and egg industry as a whole.
He explained that companies in the chicken and egg sector can operate smoothly and are not at risk of closure.
"The government can generate tax revenue from company profits due to the growth of a healthy chicken and egg industry resulting from the adjustment of the price ceiling.
"Government revenue can also be allocated by providing direct subsidies for chicken and eggs to the B40 and middle M40 groups through cash transfers, with the country being able to regain 100 per cent self-sufficiency.
"The country also does not need to depend on imported supplies of chicken and eggs and can develop and strengthen its food security position for the chicken and egg industry and even export to foreign markets, thereby convincing importing countries to buy supplies from Malaysia," he said.