Malaysia to save US$10.6 million monthly by cutting egg subsidies
Government reduces financial support as production surplus offsets need for aid
Excess stock expected to be exported amid steady local supply
MALAYSIA – The Malaysian government is saving approximately US$10.6 million (RM45 million) each month after reducing subsidies on eggs starting May 1.
Agriculture and Food Security Minister Mohamad Sabu told parliament that the subsidy cut would generate total savings of around US$32 million (RM135 million) by the end of July, when the subsidy scheme is set to end completely.
He was responding to Sheikh Puzi Sheikh Ali, a member of parliament for Pekan, who asked for details on the financial savings and the subsidy’s effect on food prices and the egg market.
Mohamad, also known as Mat Sabu, said egg prices remain stable and affordable for local consumers despite the reduction in government support.
He noted that July’s domestic egg production is expected to hit 1.75 billion, while consumption is estimated at 1.06 billion, creating a surplus of 690 million eggs.
The excess will be exported, although the minister did not provide specific export destinations or expected earnings from the move.
Funds redirected as supply remains stable
The minister said the money saved would be used to fund other public programs that directly benefit citizens.
He added that the decision to remove the subsidy followed assurances from egg producers that supply levels and production costs had stabilized.
In April, the Agriculture and Food Security Ministry confirmed plans to phase out the subsidy, citing improved industry conditions.
This came after Prime Minister Anwar Ibrahim in June 2024 announced a slight retail price reduction of US$0.007 (three sen) per egg under a separate US$23.5 million (RM100 million) subsidy effort.
Originally, the government intended to remove price controls in July 2023, but the plan was delayed due to concerns over potential consumer impact.
Now, authorities say they are working closely with the Domestic Trade and Cost of Living Ministry to continue monitoring supply and pricing to prevent market disruptions.
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