Chicken prices will not be floated: Malaysian PM
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The decision to retain the ceiling price of chicken was made so that people would not be burdened by rising costs of living, said Malaysian PM Ismail Sabri Yaakob.
PHOTO: BERNAMA
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KUALA LUMPUR - Malaysia has decided to retain the ceiling price of chicken, after previously announcing it would allow prices to float from July 1 to address supply shortages.
The decision, Prime Minister Ismail Sabri Yaakob said, was made so that people would not be burdened by rising costs of living.
“The government decided the price of chicken in the market will not be floated,” Datuk Seri Ismail said in a statement yesterday.
The new ceiling price will be announced “in the near future” by Agriculture and Food Industries Minister Ronald Kiandee, the premier added.
He also said electricity and water tariffs will not be increased, which means the government will continue to pay subsidies to a tune of RM5.8 billion (S$1.8 billion) to cover the increased costs of fuel and power generation.
“This decision proves the government is concerned about the importance of protecting the Keluarga Malaysia (Malaysian Family) so they aren’t burdened with the challenging rise of prices and cost of living,” he added.
Mr Ismail’s announcement came just days after Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi said chicken prices will be floated from July 1, with the end of government subsidies to producers for selling chicken at the ceiling price.
Datuk Seri Alexander had previously forecast that the price of chicken would breach RM10/kg but not exceed RM12.50/kg without the subsidies.
Since February, the Malaysian government has capped the price of standard chicken at RM8.90/kg and the price of dressed chicken at RM9.90/kg.
Malaysia’s chicken supply first started shrinking in February, forcing the government to impose an export ban on whole chickens in June, until production and prices stabilise. At the height of the crisis, chicken producers had claimed soaring feed prices meant they could no longer supply poultry at the existing price cap.
As domestic supply showed signs of improvement, the ban was partially lifted on June 14, allowing the export of live kampung chickens across the Causeway.
Malaysia has also started a chicken stockpile as a short-term measure in tackling food shortages and inflation, which have put many industry players out of business and left consumers in a bind.
Instead of relief, Mr Ismail’s latest announcement has sparked concerns of another possible chicken shortage.
“Honestly, I’m very worried that this is going to be the dawn of another supply shortage. I appreciate the government’s effort in trying to resolve this issue, but I really wish they would share the whole plan instead of sharing bits of it,” chicken rice seller Azhani Mahmud told The Straits Times.
“They should’ve just announced the new ceiling price. I’m anxious to know if my suppliers can meet it. They said they could barely survive with the old price, so I wonder how this is going to affect my business. I cannot lose more money due to this instability, my small business would collapse,” she said.
The government’s effort to soften the impact of surging food and fuel prices via subsidies comes ahead of a general election that is widely expected to be held this year. This week it announced plans to provide direct aid to low-income households in the form of cash assistance of up to RM100, bringing the total handout provided so far this year to RM500 per household.
The latest round of assistance will cost the government RM630 million and will be disbursed starting Monday.
