Boost supply of eggs, not cut prices, says Mydin boss

 

There have not been enough eggs in the market in recent months, says Mydin hypermarket boss Ameer Ali Mydin. (Bernama pic)

PETALING JAYA: The government should be increasing the availability of subsidised eggs and not reducing their retail prices, says the managing director of a hypermarket chain.

Ameer Ali Mydin said there have not been enough eggs in the market in recent months.

“With this price reduction, can the government guarantee that more eggs will be available? I doubt so,” he told FMT, referring to the three sen drop in the retail price of grade A, B and C eggs nationwide.

“I don’t think the supply of the subsidised eggs will be sufficient.”

Ameer Ali Mydin.

The Mydin hypermarket boss said producers lack incentives to increase standard egg production under the current price control framework, especially as Omega eggs do not qualify for subsidies.

“If you allow the market forces to rule, automatically the supply will be boosted,” he said.

Announcing the price drop earlier today, Prime Minister Anwar Ibrahim said the move involves a subsidy of 10 sen per egg through an expenditure of RM100 million.

Jeffrey Ng.

Jeffrey Ng, an adviser to the Federation of Livestock Farmers’ Associations of Malaysia, welcomed the lower prices but cautioned against potential smuggling activities that could lead to leakages.

“Managing leakages is important. If the subsidised eggs were brought to neighbouring countries, the supply to Malaysians would be jeopardised,” he told FMT.

“We want these products to help Malaysians instead of profiting smugglers, which would defeat the purpose of price subsidy.”

Malaysia Consumers Movement deputy chairman Beninder Singh urged consumers to lodge reports if traders did not comply with the directive to reduce prices.

“We encourage consumers to report to the authorities if traders are found selling at prices higher than the controlled rates,” Bernama quoted him as saying.

Targeted subsidy as long-term solution

Both Ameer and Ng expressed reservations about the sustainability of subsidies for egg prices, advocating a shift towards targeted assistance for deserving groups instead.

“I feel this is a wrong move by the government because the original plan is to remove subsidies from key items and help the lower-income groups through targeted subsidies,” Ameer said, adding that this price cut also benefits the affluent.

Ng said Putrajaya would not be able to sustain the high costs of blanket subsidies for eggs in the long run, which reportedly amounted to RM927 million in 2023. - FMT