Malaysia sets higher price ceiling of RM9.40 for chicken from Jul 1

KUALA LUMPUR: The Malaysian government has set a ceiling price of RM9.40 per kg for standard chicken from Jul 1.

The maximum retail price of standard chicken in Malaysia is currently at RM8.90 per kg. These are chickens that have been processed, and are sold with head, feet and organs.

In a statement on Wednesday (Jun 29), the Agriculture and Food Industries Minister Dr Ronald Kiandee said that the Cabinet also decided that the retail price of Grade A eggs will be set at 45 cents each, Grade B (43 cents) and Grade C (41 cents).

“The decision has taken into account the Bantuan Keluarga Malaysia (BKM) assistance announced by Prime Minister Ismail Sabri Yaakob, where cash aid of RM500 (US$113) will be given to eligible B40 and M40 groups,” he said, referring to the bottom 40 per cent and middle-income 40 per cent Malaysians. 

Last Friday, Mr Ismail Sabri said that the government decided not to float the price of chicken which was expected to take effect from Jul 1, and instead a new ceiling price to be announced later.  

He said the decision was to safeguard the interests of Malaysian families so that they are not burdened by rising prices and by the challenges of the cost of living.

In his statement, Dr Kiandee said that a total of 8.6 milllion BKM recipients have been approved, with households to receive up to RM2600 this year. 

“This assistance is the highest ever given by any government. With the implementation of this subsidy, the government has allocated RM369.5 million, bringing the total subsidy to RM1.1 billion since Feb 5.

“The issue of the rising prices of goods is not only seen in Malaysia, but is a global phenomenon due to supply chain disruption caused by geopolitical conflict and climate change,” he said.

The government previously announced that it would stop giving subsidies to poultry farmers from Jul 1.

Following the announcement, poultry farmers reportedly expressed the hope that the government would allow the price of chicken to be floated. 

Checks on markets however revealed that chicken was sold over the ceiling price, with some traders even selling it for RM12 per kg.

Malaysia had on Jun 1 banned the export of chicken to resolve supply and pricing issues.

The country has been facing a shortage in supply of chickens, with the price of chickens skyrocketing due to the costs of breeding them.

Malaysia previously exported 3.6 million chickens a month to Singapore.

Chicken traders have complained that the increased costs have cut into their profit margin, especially when a price ceiling is enforced. 

The price control mechanism has been in place since November last year. 

The government had lowered the price ceiling for whole standard chickens a few times, from RM9.50 per kg to the current RM8.90 per kg, while offering a subsidy of 60 sen per kg to breeders in February this year.  

Whole standard chickens are processed and sold with head, feet and organs, while whole “super” chickens, with a current ceiling price of RM9.90 per kg, refer to poultry that has been processed, weighed and sold without their head, feet or organs.