Asian Insider

Malaysia's removal of price controls spotlights strain from subsidies

The ceiling price for chickens and chicken eggs and subsidies on selected cooking oil products will be removed from July 1. PHOTO: REUTERS
New: Gift this subscriber-only story to your friends and family

KUALA LUMPUR - Malaysia's move to scrap price controls on selected food items spotlights the growing strain from subsidies on the government's finances and the urgent need to tackle public sector debt that ranks as one of the highest in Asia.

The decision to remove the ceiling price for chickens and chicken eggs, as well as subsidies on selected cooking oil products from July 1, is expected to presage more measures in the coming weeks to rationalise the country's decades-old dependence on energy and food subsidies, said officials familiar with the policy adjustment plans.

Already a subscriber? 

Read the full story and more at $9.90/month

Get exclusive reports and insights with more than 500 subscriber-only articles every month

Unlock these benefits

  • All subscriber-only content on ST app and straitstimes.com

  • Easy access any time via ST app on 1 mobile device

  • E-paper with 2-week archive so you won't miss out on content that matters to you

Want more insights into fast-changing Asia from our network of correspondents? Get this article in your inbox by signing up here.