MUKAH: The discontinuation of subsidies and price controls on chicken will have a ripple effect on the whole supply chain and will ultimately have a bearing on consumers.
Universiti Malaysia Sarawak (Unimas) economist Associate Professor (Management) Dr Aila Abdul Latif said it will translate to additional cost to the entire operation.
“As a result, the price of food in the local market is expected to increase and it is likely that more entrepreneurs will close their businesses in the future.
“This is because people who previously ate out due to time constraints will feel affected by the more significant price increase, thus reducing their purchasing power,” she told Suara Sarawak.
“This is not only happening in the local market, but the whole world is going through a food crisis, currency depreciation and so on.
“We need to be aware that the value of RM5 today and yesterday is not the same.”
The end of chicken subsidies from Nov 1 is expected to lead to savings of about RM100 million a month for the government.
The Agriculture and Food Security Ministry has been reported as saying that this would allow the government to enhance various socio-economic and welfare initiatives, including cash assistance.
Dr Aila, in this context, said the community needs to understand the policies implemented by the government because they are meant to help the people.
“We need to adapt to changes in spending because the ones who feel the impact are ourselves,” she said.
“The time has come for us to have a simple plan that rebalances household expenses with the money we have.”
Although there is financial injection assistance from the government, we need to choose wisely, spend and make adjustments based on the prevailing situation, she said.
