Decision To Lift Chicken Subsidies Leads To More Financial Resources For Social Aid

By Nurrul Huda Ahmad Lutfi

KANGAR, Nov 10 (Bernama) --The government's move to end subsidies and chicken price controls effective Nov 1 is a significant decision that can save the country's funds so that the financial resources can be used to meet other needs for the community in a targeted manner.

Universiti Malaysia Perlis (UniMAP) Business and Communication Faculty senior lecturer Assoc. Prof Dr Mohd Zukime Mat Junoh said the removal of the subsidy would allow the government to allocate the money to support other efforts such as social assistance programmes for the needy.

"By ending the chicken subsidies, the government can reduce the direct expenditure required to support the price of chicken. This can help reduce the fiscal deficit and enable the government to use financial resources more efficiently.

"...the government can then provide support to target groups in need. This may include supporting education, health, social development or other assistance programmes," he told Bernama recently.

Minister of Agriculture and Food Security Datuk Seri Mohamad Sabu in his press conference on Oct 30 announced that the government issued RM3.8 billion in subsidies to cover the cost of chicken and eggs since February last year.

Mohamad was quoted as saying the rationale for ending the wholesale subsidy for the chicken was to reduce the leakage of subsidies that foreigners and high-income earners also enjoy.

Mohd Zukime said if the funds that were previously used for the chicken subsidy were diverted to the social assistance programme, it could help improve economic equality by providing direct benefits to the underprivileged.

"I believe that when the government decides to end the subsidy and chicken price control, chicken prices will remain stable as long as the cost of input factors in the chicken production is still under control... the government and market monitoring bodies may need to play an important role in monitoring the activities of chicken traders and impose strict measures if there is an inappropriate action by traders," he said.

In addition, he said the government's decision to end the chicken subsidy and prevent the leakage of subsidies that are also enjoyed by foreigners and high-income earners is an action that can be considered as an effort to increase equality in the subsidy system.

"However, the evaluation of its effectiveness can be subjective and depends on the actual goal that the government wants to achieve. There are several things that need to be considered critically, including the impact on low-income people.

"When subsidies are removed, it is important to ensure that low-income people who need help continue to be able to access chicken at a reasonable price. If not, this action may burden the already poor," he said.

Mohd Zukime said in addition, it is important to study the impact on the local chicken industry in an effort to maintain the sustainability of the industry because the decision may affect the local chicken industry.

Meanwhile, Perlis Consumers Association chairman Razali Lebai Salleh said he supports the government's move to end the subsidy and price control of chicken because the financial resources that can be saved can be used to meet the welfare needs of the people.

"This is a good move, the government can use the money from chicken subsidy for other uses for the benefit of the people, and I also believe that there will not be excessively high chicken prices after this because traders will compete with each other to sell at a price that the people can afford.

"The people also need to choose wisely, look at the reasonable price of chicken before buying it," said Razali who also hoped that the monitoring of chicken prices and enforcement would continue to ensure that no traders manipulate the price of chicken and make excessive profits.

-- BERNAMA