“We will be meeting with the domestic trade and consumer affairs ministry and other relevant agencies tomorrow to discuss the issue of rising costs and the subsidies set by the government,” he said at a press conference today.

He said his ministry was aware that the cost of chicken supply is higher than the ceiling price of RM8.90 per kg set by the government.

“That is why we introduced the subsidies about a month ago,” he told reporters.

On Feb 28, Kiandee announced that the government would provide subsidies to chicken farmers of 60 sen per kg for chicken and 5 sen per egg for grades A, B and C.

These subsidies are to alleviate the burden of farmers following the increase in costs, especially food costs, that cover 70% of production, as well as logistics, labour, utilities and medicines.

“But we admit that the 60 sen/kg subsidy for chicken was only beneficial two months ago because the cost of corn imports has not been static and has gone up.

“The industry is definitely impacted by the rising cost of animal feed. So, we will address this at our meeting tomorrow.”

Malaysia is facing a shortage of the popular protein source due to the increased cost of chicken feed and labour shortage.

Chicken traders are reportedly selling chicken above the ceiling price. Many are saying they have no choice as suppliers are charging them RM8.70 per kg.

Recently, Mydin managing director Ameer Ali Mydin proposed an increase in the ceiling price for standard chicken to RM9.90 per kg due to the current shortage.

His suggestion was supported by Malaysia Consumers Movement president Darshan Singh who said raising the ceiling price would motivate chicken farmers to maintain their production.