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The Malaysian government has ended its 3-year price controls on eggs on May 1st. Additionally, subsidies for domestic egg production have been halved, with a full revocation of subsidies planned for August 1st.
The move stems from a stabilization of egg production as well as an oversupply in Malaysia’s egg market, according to industry observers.
Egg prices are set to modestly increase after the August 1st revocation, though views on the decision remain mixed.
Nusantara Academy for Strategic Research senior fellow, Dr Azmi Hassan argued that the removal of subsidies will encourage competition and diversification among local egg producers, while fund manager Neoh Jia Man of Tradeview Capital has argued that there will be no clear beneficiaries, with large suppliers reliant on subsidies being the most negatively impacted.