KUALA LUMPUR – Egg prices are expected to rise temporarily by between five and 10 sen following the government’s decision to reduce subsidies from May 1, according to Mydin Hypermarket managing director Datuk Ameer Ali Mydin.
The current subsidy of 10 sen per egg will be halved to five sen starting tomorrow and fully phased out by August 1. At the same time, price controls on eggs will also be lifted.
In a statement, the Agriculture and Food Security Ministry said the decision was made after considering industry commitments to ensure a sufficient supply, supported by more stable production costs.
The move is also aimed at ensuring the long-term sustainability of the local egg industry and managing government spending.
Ameer, who also heads the Bumiputera Retailers Association, welcomed the move, saying it could help resolve the ongoing supply shortage.
“This is exactly what we’ve been urging the government to do. We previously faced significant shortages of eggs in the market, but this initiative is expected to boost availability,” he told Scoop.
“During Hari Raya, supply was adequate, but shortages returned this week. It has been challenging, and we had to maintain the status quo. With this new announcement, we anticipate a positive shift.
“There may be a temporary price increase of around five to 10 sen, as some retailers may adjust prices to maintain margins. However, we’ve yet to make any decisions on our end.
“Thanks to the government’s move, we expect improved supply, more investment, and ultimately, for the market to stabilise on its own.”
Ameer also described the decision as timely in the context of global trade developments.
“The removal of the subsidy is also a step in the right direction. In light of (US President) Donald Trump’s tariff policies, this shows we’re addressing non-tariff barriers — including agricultural subsidies.
“That said, the public need not worry. Retailers will ensure prices remain fair and not exceed the cost of Omega-3 eggs,” he added.
Meanwhile, Datuk Jeffrey Ng, adviser to the Federation of Livestock Farmers’ Associations of Malaysia (FLFAM), said the industry is confident prices will remain stable under the revised scheme.
“The government has revised the subsidy, and after discussions with us, we’re impressed with the new scheme.
“We’ve conducted a thorough analysis and are confident that prices will remain stable. There will also be sufficient supply to meet demand,” he said.
Malaysia introduced subsidies and price caps for chicken and eggs in February 2022, following supply disruptions that pushed prices up.
The shortages were partly driven by the war in Ukraine, which affected global shipments of wheat and corn — key ingredients in poultry feed. – May 1, 2025