He said the government had heeded the industry’s viewpoint, where availability is deemed more significant than price.

“This is the right time to remove the subsidy because the price of chicken is far below the controlled price of RM9.40. The current price is about RM8.50,” Ameer told FMT.

He said lifting price controls is expected to have a minor impact on chicken prices but could lead to a significant increase in egg prices due to persistent shortages in the industry.

“We do not expect prices to go up too high for chicken immediately if price controls are lifted, but, of course, there has always been an egg shortage. “If the price ceiling is lifted, we expect the price of a grade A egg, which is currently 45 sen, to increase by at least 10 sen,” he said.

Ameer said the government retains the option to reinstate price controls if there are any unforeseen circumstances that could lead to instability.

He said the government’s timing in deregulating the prices of these items is fitting. “As prices are currently low, especially for chicken, this would be the right time to lift the ceiling.”

Jeffrey Ng, adviser to the Malaysian livestock farmers’ federation, said the move is positive, noting that it was expected, as discussions on this matter have been ongoing for a considerable time.

“We prefer prices to be left to float, and when they are allowed to float, the government should refrain from intervening.”

He said prices that are set too low are unfair to the farmers. “We hope that after the price ceiling is removed, prices will naturally adjust, and consumers will need to adapt to the new pricing for both chicken and eggs.”

Prime Minister Anwar Ibrahim has announced that the temporary price controls for eggs and chicken will be lifted to ensure adequate supply of these items. Anwar said details would be announced by the agriculture and food security ministry.