KUALA LUMPUR: As chicken prices are floated starting this month, the Domestic Trade and Cost of Living Ministry has mobilised over 2,000 enforcement personnel to monitor prices.
Acting minister Datuk Armizan Mohd Ali said a total of 2,300 enforcement personnel and some 900 price monitoring officers have been deployed to monitor the situation at all levels, including hypermarkets, mini-markets, supermarkets, wet markets, sundry shops and others, to survey the situation following the floating of chicken prices.
“We know that among the risks that we may face following the floating of chicken prices is the rise of cartels,” he said during his ministerial reply on the Budget 2023 in the Dewan Rakyat yesterday.
He said the Competition Act must be strengthened to resolve issues related to cartels, adding that the ministry had held engagements with the industry before deciding to float chicken prices.
“They were asked to give us assurance and extend their cooperation to ensure that not only supply but also prices will be reasonable,” he added.
He said this in response to concerns raised by Datuk Rosol Wahid (PN-Hulu Terengganu) about the potential risk of price increases due to the floating mechanism.
Chicken prices will be determined by market forces after the government ended chicken price controls and subsidies on Oct 30 as a move to reduce leakages enjoyed by foreigners and high-income earners.
The ministry’s Kuala Lumpur director, Ariffin Samsudin, said there are 94 enforcement officers and 75 price check officers who will monitor the prices in the city.
“As of Nov 1, the prices offered by the suppliers were still reasonable, between RM7.10 and RM 7.60. This price from the suppliers takes into account whether the sellers buy them in cash without any credit.
“The majority of the sellers here at the Chow Kit market were selling between RM9 and RM9.40 per kg, which is still almost close to the last ceiling price,” he told the press after carrying out checks at the market yesterday with his officers.
During his visit, he reminded sellers that if their suppliers suddenly increase prices drastically, they should inform the ministry.
He added that if there are sellers who also increase prices up to RM11, the ministry will take action against them under the Price Control Anti-Profiteering Act 2011.
“Chicken sellers should not indiscriminately increase their prices; if today’s price is RM9, don’t increase to RM10 or RM11.
“We understand there will be an increase from RM9.40 to RM9.45, so we will see what the price is from the supplier; if it is higher, we won’t take any action, but profiteering is not allowed,” he said.
As a result of the float, Ariffin said the government is able to save RM100mil every month in subsidies.
This amount can then be redirected to those in the chicken industry to help stabilise the price, he added.
Separately, Ariffin mentioned that there will be a Jualan Rahmah taking place in Stadium Kuala Lumpur, Cheras, over the weekend (Nov 4–5).
Essential items such as cooking oil, rice, chicken, eggs, meats and sardines will be sold at the sale, he said.
“Items at the sale are subsidised between 30% and 40%, so prices are really low. Everyone is entitled to purchase one per item, and this is open only to Malaysians,” he said.
On Monday, Agriculture and Food Security Minister Datuk Seri Mohamad Sabu announced that the government will discontinue subsidies and price controls on chicken.
Instead, he said that the prices of chicken will be floated while subsidies and price control for grade A, B and C eggs will remain according to the existing mechanism.
