Fomca backs egg subsidy removal, calls for consumer protection measures
KUALA LUMPUR: The Federation of Malaysian Consumers Associations (Fomca) has urged retailers to act responsibly and avoid imposing unjustified price hikes ahead of the government's decision to remove the egg subsidy starting Aug 1.
Its secretary-general, Dr Saravanan Thambirajah, said the gradual withdrawal of subsidies should not be treated as a licence for opportunistic pricing, particularly when many households are still grappling with the rising cost of living.
"Retailers, whether large supermarket chains or small businesses, must exercise ethical pricing practices and ensure any adjustments are based on actual changes in production or supply costs.
"The gradual removal of subsidies should not be seen as a green light to impose unfair price hikes on consumers," he told the New Straits Times.
Saravanan also called on industry groups and major retailers to lead by example by maintaining price stability and protecting consumer interests throughout the transition period.
"Price transparency and fairness will go a long way in building public trust and supporting national economic resilience."
Earlier, the Agriculture and Food Security Ministry announced that the current subsidy of 10 sen per egg would be halved to 5 sen starting today, and fully discontinued from Aug 1.
The ministry said the decision was made following the stabilisation of production costs and improved supply conditions, including during the recent Hari Raya Aidilfitri festive season.
Saravanan said Fomca welcomed the government's efforts to ensure long-term sustainability in the egg supply industry but emphasised that enforcement agencies must remain vigilant against profiteering.
"We understand the need to optimise national spending and redirect limited fiscal resources to where they are most needed.
"However, this must be accompanied by robust protections for the vulnerable, stable supply chains, and ongoing market monitoring to ensure the move does not inadvertently burden consumers."
He said maintaining a consistent and sufficient supply of eggs in the market was also key to ensuring price stability.
"The government must work closely with producers, distributors and retailers to prevent supply disruptions, which can lead to panic buying or artificial scarcity that drives up prices."
Saravanan said the government should also consider increasing the quantum of assistance if prices of essential items show significant upward trends.
"At the same time, we stress the importance of implementing proper safety nets, particularly for the B40 and other vulnerable groups who may feel the impact of price adjustments more acutely.
"We also call on the Domestic Trade and Cost of Living Ministry to continue strict monitoring of the Consumer Price Index (CPI), especially for food staples.
"Take firm action against any opportunistic price hikes that are not justified by cost increases, and ensure that pricing mechanisms remain transparent and fair."
Keywords: News Food Malaysia Egg Eggs Nst Consumers Producers Cpi Subsidies Subsidy Fomca Pricing Retailers Federation Of Malaysian Consumers Associations Price Hikes Domestic Trade And Cost Of Living Ministry Agriculture And Food Security Ministry Saravanan Thambirajah
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