Starting May 1, Malaysians will see a phased reduction in the chicken egg subsidy, with a full removal coming into effect by August 1.
The Ministry of Agriculture and Food Security (KPKM) announced that the government will slash the current egg subsidy from RM0.10 to RM0.05 per egg. By August, it’ll be completely gone.
Why the move?
The decision comes as part of the MADANI government’s plan to better target subsidies. Authorities say the egg supply has stabilised, especially during high-demand periods like Aidilfitri. Prices have remained competitive, and industry players have promised to maintain consistent production.
The government has spent nearly RM2.5 billion subsidising eggs between February 2022 and December 2024. These subsidies helped farmers cope with rising costs from Covid-19 disruptions, global grain price spikes, and the Ukraine-Russia conflict.
However, keeping the subsidies long-term was deemed unsustainable—not just for national finances, but also for the local egg industry’s survival.
The ministry also pointed out that the blanket subsidy was benefiting foreigners and high-income earners too. By ending it, the government hopes to redirect funds to projects that align better with the MADANI values of people-centric welfare.
What’s being done to ease the impact?
To cushion the blow on consumers, the government has lined up several interventions.
Industry players have agreed to introduce special-grade eggs at more reasonable prices to ensure continued affordability.
Meanwhile, affordable options will remain available through Jualan Agro MADANI and Jualan Rahmah campaigns, which are run nationwide—including through FAMA and LPP outlets.
On top of that, enforcement will be ramped up by the Ministry of Domestic Trade and Cost of Living under the Price Control and Anti-Profiteering Act (AKHAP 2011) to clamp down on any price gouging or manipulation by irresponsible traders.
