KUCHING: The Consumer Voice Association of Sarawak (Covas) has expressed support for the removal of subsidies for chicken and eggs by the end of the month, allowing prices to float starting from July 1.
Covas vice-president Philip Ng stated that this move would lead to increased supply and foster healthy market competition.
“As a consumer association, we prioritise price stability and stock availability over price control.
“We believe that setting ceiling prices too low can discourage breeders and result in goods shortages. Therefore, we support the removal of price control measures to encourage breeders to produce more, leading to greater availability of goods,” he told New Sarawak Tribune.
Ng emphasised the need for effective price monitoring to prevent breeders from taking advantage of the removal of price control by excessively increasing prices. “This monitoring helps maintain a fair and transparent market, preventing unfair practices that could harm consumers.”
He added that Covas believed that removing price control measures would promote supply and competition, leading to lower prices and improved stock availability.
However, Covas stressed the importance of implementing robust price monitoring mechanisms to prevent price manipulation and ensure fair prices for consumers.
Earlier on Thursday (June 8), Agriculture and Food Security (KPKM) Minister Datuk Seri Mohamad Sabu announced that the government would float the prices of chicken and eggs from July 1 following the removal of subsidies.
KPKM will implement soft landing mechanisms to stabilise the supply of chicken and eggs after the subsidy ends, including allowing imports from recognised source countries, including Thailand, China, Brazil and Denmark.
Meanwhile, Ng believed that allowing the import of eggs could increase local competition, providing consumers with more choices and fostering competition among local breeders.
“This creates an opportunity for local breeders to improve their products and practices to stay competitive, benefiting consumers and encouraging innovation in the local market.”
