Malaysia has reduced the price of eggs by RM0.03 (S$0.0086) per egg.

The move was announced by Malaysia's prime minister, Anwar Ibrahim, on Jun. 17, 2024, according to Malaysian media.

This means that eggs sold in Peninsula Malaysia will now cost RM0.42 (S$0.12) for Grade A, RM 0.40 for Grade B (S$0.12) and RM0.38 (S$0.11) for Grade C, he added.

The government is spending S$28.7 million on an egg subsidy scheme

According to Anwar, the price reduction is part of a government scheme that will provide subsidies of RM0.10 per chicken egg.

He added that such a measure is in line with a drop in the input costs for egg production, especially for the basic ingredients in chicken feed, according to The Edge Malaysia.

The scheme will also cost a total of RM100 million (S$28.7 million).

As a point of comparison, Anwar pointed out that the allocation for egg subsidies in 2023 was RM927 million (S$266 million).

He was further quoted as saying:

"I want to emphasise that the government will continue to more proactively and effectively address issues related to the cost of living, while striving to mitigate any negative impact on the people's daily lives."

Malaysian experts say scheme has benefits but government should also improve egg supply

A few experts whom Malaysian media The Star spoke to said that while the subsidy scheme has benefits, the supply of eggs must also be raised.

An economics professor from Sunway University, Yeah Kim Leng, was quoted as saying that while the scheme will help to mitigate inflation, increasing the output and productivity of Malaysia's farms is "crucial" to addressing the persistently high food prices, as well as rising food import costs.

Meanwhile, Tunku Abdul Rahman University of Management and Technology’s Centre for Business and Policy Research chairman, Foo Lee Peng, acknowledged that the scheme would benefit lower-income households the most, enhancing their food security.

However, Foo also called on the Malaysian government to lower the entry barriers to the egg market by streamlining regulatory processes and providing financial access for small-scale producers.

"(This) will help foster a more competitive market that will, in turn, keep egg prices low without the need for subsidies," she was quoted as saying.

There must also be "effective monitoring" of the egg market to detect price manipulation or anti-competitive behaviour, along with the implementation of anti-monopoly regulations, to prevent price hikes, she added.

Top photo by Mothership