MCA chief suggests egg price cut could backfire on government

KUALA LUMPUR, June 18 — The government’s decision to reduce egg prices by three sen may lead to market distortions again, MCA president Datuk Seri Wee Ka Siong warned.

He said this was because the reduction in prices has the potential to increase the demand of eggs.

“Even a small five per cent increase in demand could lead to a shortage of one million eggs out of the current supply of 21 million eggs,” he said in a post on his Facebook page.

He said if shortages were to re-occur, prices would go up again as production of eggs cannot be easily ramped up overnight.

“The decision by the government to reduce egg prices by three sen may backfire and cause Malaysians even more harm and cost our government even more money in blanket subsidies for eggs which already exceeds RM927 million this year,” he said.

Wee was commenting on Prime Minister Datuk Seri Anwar Ibrahim’s announcement yesterday that the price of eggs will be cut by three sen.

The MCA chief said eggs supply has stabilised in recent months but has yet to reach the same levels as in 2019 before the pandemic.

“The poultry industry has yet to rebuild its production buffer that existed in the past,” he said.

He said the government must do its best to ensure eggs supply are not disrupted like before.