Government to End Egg Subsidy on August 1

Key Details:

• Subsidy Reduction Timeline: Effective May 1, 2025, the subsidy per egg was reduced from RM0.10 to RM0.05. The subsidy will be entirely abolished on August 1, 2025 .Financial Implications: Between February 2022 and December 2024, the government spent nearly RM2.5 billion on egg subsidies to support producers amid rising costs due to the COVID-19 pandemic and global supply chain disruptions .

• Rationale for Removal: The government cited the stabilization of production costs and sufficient egg supply, as evidenced during the recent Hari Raya Aidilfitri festive season, as reasons for the subsidy removal. Additionally, it was noted that the blanket subsidy benefited all consumers, including foreigners and higher-income groups, making it an unsustainable long-term strategy .

Public Response:

While some industry stakeholders believe the subsidy removal will have minimal impact on prices due to stabilized production costs, others express concern over potential price increases. Consumer groups have urged the government to implement robust monitoring mechanisms to prevent unjustified price hikes and ensure that vulnerable populations are protected .