Why did the government reverse its plan to float egg and chicken prices?

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Government Reverses Plan to Float Egg and Chicken Prices After Considering Industry and Public Welfare

The Malaysian government has decided to continue subsidising egg and chicken production and maintain price controls on these essential food items beyond July 1. This reversal follows an earlier plan to remove maximum selling prices for chicken and eggs from the same date. The decision was made after a comprehensive review of all relevant factors, with a particular focus on safeguarding the long-term viability of the chicken and egg industries and ensuring the continued well-being of the public.
Continuation of Subsidies and Price Controls

The Malaysian government will persist with providing subsidies for both egg and chicken production, thereby extending the existing price control measures beyond the initially planned July 1 deadline. This move signifies a departure from the previous intention to allow market forces to determine the prices of these staples. The announcement was jointly made by the Ministry of Agriculture and Food Security (KPKM) and the Ministry of Domestic Trade and Cost of Living (KPDN).
Consideration of Industry Sustainability and Public Welfare

The decision to maintain subsidies and price controls was underpinned by a thorough evaluation of various aspects, critically including the need to ensure the sustainability of the chicken and egg industries. Alongside this, the welfare of the Malaysian public was also a significant consideration in the final determination. This holistic assessment led to the agreement by the Prime Minister to proceed with the proposal put forth by KPKM and KPDN.
Reversal of Earlier Policy Announcement

This continuation of subsidies and price controls represents a shift from a prior announcement made on June 7. At that time, the Ministry of Agriculture and Food Security had indicated in a written parliamentary reply that subsidies for chicken and eggs would cease on June 30, with prices to be floated from July 1. This earlier statement also mentioned the implementation of several "soft-landing" measures intended to ensure a stable supply post-subsidy.
Timeline of Cabinet Decisions

The decision to maintain subsidies and price controls is a continuation of a policy framework initially established earlier in the year. On February 17, the Cabinet had already resolved to continue providing subsidies for chicken and eggs for the period spanning from January 1 to June 30 of this year. The subsequent decision extends this support beyond the initial six-month period.

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Why did the government reverse its plan to float egg and chicken prices?

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