Fowl business? Malaysians face higher chicken prices as PM Anwar eyes subsidy cuts

Malaysia’s move to remove blanket chicken subsidies last week has already led to a price spike in premium cuts

Anwar has suffered an electoral blowback from cost-of-living issues and risks further alienating voters with his plan to rationalise fuel subsidies

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A customer and a chicken vendor at a wet market in Shah Alam, Malaysia. Photo: Bloomberg

Published: 5:30pm, 7 Nov 2023Updated: 7:55pm, 7 Nov 2023

Regular customers of nasi lemak vendor Soraya have had to swallow a 15 per cent price hike for the fried chicken she dishes out at a street stall in Kuala Lumpur in recent weeks, as they bear the higher cost following the end of an US$800 million state subsidy for poultry and eggs.

“The price of [fresh] chicken parts has been high for a while now, and we can’t keep our prices down any more,” said Soraya, 41, an Indonesian migrant who runs her stall in the city’s suburbs with her Malaysian husband.

Prime Minister Anwar Ibrahim’s administration is trying to wean Malaysians off sweeping subsidies introduced to soften the cost-of-living crisis, with the state facing an 81 billion ringgit (US$17.3 billion) bill this year alone.

On November 1, the government removed a blanket subsidy and price control regime for fresh whole chickens and eggs, which it said had cost 3.8 billion ringgit since its introduction last year.

But the move carries political risks, as it means small businesses face impossibly narrow margins – which customers soon discover when it comes to paying.