WHILE the public has welcomed the government’s move to reduce the price of eggs by three sen, such an announcement has the potential to increase the demand of eggs which could overwhelm the supply, said Datuk Seri Dr Wee Ka Siong.
The MCA president said while the supply of eggs had stabilized in recent months, reports had indicated that it has yet to return to the same levels as in 2019 before the COVID-19 pandemic, adding that the poultry industry has yet to rebuild its production buffer.
“The decision by the government to reduce egg prices by 3 sen might backfire and cause Malaysians even more harm and cost our government even more money in blanket subsidies for eggs which has exceeded RM927 mil this year,” he said in a statement on Tuesday (June 18).
“Even a small 5% increase in demand could lead to a shortage of one million eggs out of the current supply of 21 million eggs.
“Should this happen, shortages will re-occur and prices will go up again as the production of eggs cannot be easily ramped up overnight.”
Wee said therefore, the government must do its best to ensure that the supply of eggs are not disrupted like before.
On Monday (June 17) Prime Minister Datuk Seri Anwar Ibrahim announced that the government has decided to reduce the retail price of grade A, B and C eggs nationwide by 3 sen effective immediately.
The new prices for eggs are as follows: Grade A (42 sen per egg), Grade B (40 sen) and Grade C (38 sen) in the peninsula.
Retail price for eggs in Sabah, Sarawak and Labuan will be adjusted according to the respective zones and districts.
Anwar also said the subsidy of 10 sen per egg to accommodate the price reduction will involve an expenditure of RM100 mil. – June 18, 2024
Main pic credit: The Star
