Malaysian Indian Muslim Restaurant Owners Association president Jawahar Ali Taib Khan said the recent drop in egg prices would have a minimal impact on restaurant food prices.

“We are still absorbing other increased costs of goods at the moment,” he told FMT.

“We hope the government will review the prices of other essential goods needed by restaurants and consider reducing them as well.”

On Monday, Prime Minister Anwar Ibrahim announced a three sen reduction in the retail prices of grade A, B, and C chicken eggs nationwide.

Anwar said the move involved a subsidy of 10 sen per egg through an expenditure of RM100 million.

Jawahar said there were also concerns about rising logistics costs for the transport of ingredients to restaurants following the implementation of targeted diesel subsidies on June 10.

Thirty-three types of public and goods transportation vehicles currently benefit from subsidised diesel through a fleet card system under the subsidised diesel control (SKDS) system.

Domestic trade and cost of living minister Armizan Mohd Ali previously said the government would consider expanding the range of vehicles eligible for diesel subsidies under SKDS 2.0.

Jawahar said lowering the prices of essential goods would indirectly help restaurant operators avoid raising food prices, ensuring stability in the near and long term.

He added that introducing “premium prices” for food would likely reduce the number of customers.

“If we intend to take care of customers with reasonable prices, more customers will come. It’s better than selling at premium prices but having fewer customers,” he said.