Breakfast outings may not be the same when the ceiling prices for chicken and eggs are removed starting July 1.
Diners may either have to pay more or put up with shrinking portions to enjoy their nasi lemak bungkus, half-boiled eggs with toast or even roti telur from their favourite coffeeshop or mamak restaurant.
Last month, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced the government’s plan to remove the ceiling prices for chicken and chicken eggs after June 30 this year.
This means the market price will be determined by supply and demand.
Abdul Mukthahir: If the prices of chicken and eggs are not controlled, it will give wholesalers an opportunity to fix their prices.
While farmers are viewing this positively as it will enable them to reduce losses and make their operations more viable, it is a serious concern among the B40 group as eateries may possibly hike prices to cushion their operational costs.
The ceiling price for chicken is currently RM9.40per kg in Peninsular Malaysia, while the maximum retail price in the peninsula for a Grade A egg is 45sen, Grade B (43sen) and Grade C (41sen).
It is anticipated that with the removal of the ceiling price, chicken and chicken egg prices will go up.
Malaysian Indian Muslim Restaurant Owners Association (Presma) vice-president Abdul Mukthahir M. Ibrahim said most dishes would see an increase in price, including murtabak, mee goreng, maggi goreng and nasi goreng.
“If the price of chicken and eggs are not controlled, it will give wholesalers an opportunity to fix their prices,” he claimed, adding that restaurant operators would have no choice but to increase the prices of their dishes too.
“If the government is serious about reducing the cost of living, then it has to find ways to increase the supply of raw materials,” said Abdul Mukthahir.
Eatery operators are preparing for a potential price hike when the ceiling price for chicken and eggs is removed. — Photos: ART CHEN/The Star
“If you allow only a certain number of people to import foodstuff, then it is likely they will fix the price,” he said.
He also stressed that there should be no monopoly on production.
On the anticipated price hike, Abdul Mukthahir said it would depend on the market price.
“If the price of chicken goes up by 20% then food prices could increase by 20%.
“However, not everyone will hike the price by 20% as they have to be wary of their competitors.
“Some may focus on quantity, others on quality and this will also depend on their operational costs,’’ he added.
Restaurant and Bistro Owners Association (RBOA) vice-president Jeremy Lim said removal of any type of subsidy would have a knock-on effect on the food industry as a whole.
Lim: Removal of any type of subsidy will have a knock-on effect on the food industry as a whole.
“Yes, there will definitely be an increase in prices once the government lifts the ceiling price for eggs and chicken.
“The government needs to have a plan in place rather than telling people to avoid pricey eateries.
“If an outlet’s business is suffering and they are not able to meet operating costs, they might have to let people go too. It is a double whammy,” he said.
“The government should ensure the savings is channelled back to low-income earners to soften the blow, Lim suggested.
“Many business owners experienced massive losses in 2020 and 2021, and were barely surviving last year.
“It is going to be tough this year, and even the bigger businesses will take a hit as it is harder to control overheads,” he added.
Some food businesses are already bracing for a possible downturn with rising prices.
A coffeeshop owner in Taman Salak Selatan, Kuala Lumpur, who only wanted to be identified as Sim, said he would absorb the cost if the amount was low.
“We just have to wait and see. This is a neighbourhood shop and I don’t get many people coming in on weekdays,’’ he said.
A restaurant owner in Brickfields, Alagarsamy Kumar, is banking on his location in the heart of Kuala Lumpur’s Little India.
Alagarsamy says his restaurant will probably not increase their prices or reduce food portions after the ceiling price is removed.
“Our prices will remain the same and we will not reduce the portion size even after the government removes the ceiling price in June.
“While we may experience some losses, we are confident about getting more customers as Brickfields is a popular location for food,” said Alagarsamy.
Malini Devi, who owns a bakery in Taman Cheras, Kuala Lumpur, expects prices to go up.
“We hope to keep costs down but if it is too high, we may either increase prices or reduce portions.
“I would rather do that than let staff go,” she said.
Federation of Malaysian Consumers Association (Fomca) chief executive officer Dr Saravanan Thambirajah told StarMetro that prices of essential food items could not be controlled forever.
“If the government foresees shortages, it needs to take appropriate measures to ensure traders don’t manipulate prices.
Saravanan: When there is healthy competition, we can also see prices going down.
“Fomca agrees with the proposed price float and if the government can stabilise the prices of chicken and eggs, that would be good,” he said.
Saravanan opined that the move would encourage farmers to increase production.
“When there is healthy competition, we can also see prices going down,” he said.
He does not foresee a drastic increase once the price float mechanism kicks in.
“Should there be a problem, the government must intervene,” he added.
