Chicken subsidy removal: Over 3,000 enforcement officers to monitor prices

KUALA LUMPUR: Enforcement personnel are being mobilised to monitor chicken prices after subsidies for the item were removed today, says Datuk Armizan Mohd Ali.

The acting Domestic Trade and Cost of Living Minister said 2,300 enforcement personnel and some 900 price monitoring officers had been deployed to monitor the situation at all levels, including at hypermarkets, mini-markets, supermarkets, wet markets, sundry shops and others.

“I will join the secretary-general and deputy minister this evening to monitor the situation,” he said during his ministerial reply on the Budget 2024 in the Dewan Rakyat on Wednesday (Nov 1).

“We know that among the risks that we may face following the floating of chicken prices is the rise of cartels,” he said.

He said the Competition Act must be strengthened to resolve cartel issues.

He said the ministry engaged with the industry before floating chicken prices.

“They were asked to give us assurance and extend their cooperation to ensure that not only supply but the prices will also be reasonable,” he said.

He said this in response to concerns raised by Datuk Rosol Wahid (PN-Hulu Terengganu) on the potential risk of price increase due to the floating mechanism.

Market forces will determine chicken prices after the government ends chicken price controls and subsidies on Oct 31 to reduce leakages enjoyed by foreigners and high-income earners.

Separately, Rosol had also said that the shortage of cooking oil is also due to the delays in the government’s payment of subsidies to suppliers, which in turn had affected the suppliers’ production ability.

Armizan said the drastic rise in crude palm oil was one of the reasons for the delays.

“In 2019, we only spent RM269mil, which increased to RM528.2mil in 2020. In RM2021, the (subsidies bill) was RM2.19bil, and in 2022 it was RM2.41bil, and in 2023 it was projected to hit RM1.9bil,” he said.

He said some RM900mil have been paid so far, and the ministry had received an additional RM350mil.

“The Finance Ministry has given a commitment that once the RM350mil is spent, the next round of funds will be channelled to ensure that we can fulfil our responsibilities to make the payment for this year,” he said.