Malaysia Maintains 'Chicken Price Ceiling' Amid Soaring Inflation

[Image source=EPA Yonhap News]

[Asia Economy Reporter Kim Hyunjung] To respond to the rapid surge in prices, the Malaysian government has decided to maintain controls by setting ceiling prices for standard whole chicken and eggs.

According to Bloomberg News on the 29th (local time), the Malaysian Ministry of Agriculture and Agro-based Industry will limit the price of standard whole chicken to 9.40 ringgit per kg (2,778 won) and the price of eggs to 45 cents (about 133 won) per A-grade egg starting from the 1st of next month.

This measure was announced just days after the government revealed last week that it would end the existing price ceiling system, citing concerns that direct price controls could distort the market and supply. The government has allocated approximately 369.5 million ringgit in subsidies for the new price ceilings.

Malaysia has been facing import price pressures as its currency hit a two-year low last month. Official data released last week showed that food inflation in May rose at the fastest pace since October 2011.

In particular, since the Ukraine war, feed prices have surged, causing chicken prices to spike and shortages to occur since February this year. From the 1st of this month, exports of chicken-related products such as chicken meat, nuggets, and sausages have also been banned.

As a result, some countries, including Singapore, which sources one-third of its chicken demand from Malaysia, have also been affected by price shocks.