KUALA LUMPUR (July 22): The government anticipates saving RM135 million over three months following the conclusion of price controls as part of a phased subsidy retargeting, according to Agriculture and Food Security Minister Datuk Seri Mohamad Sabu.

Speaking in the Dewan Rakyat on Tuesday, Mohamad said egg subsidies were reduced from 10 sen to five sen per egg between May 1 and July 31, ahead of their complete removal starting Aug 1, 2025.

He said the move is part of the government's broader effort to reduce expenditure and reallocate funds to programmes that directly benefit the public.

"The phased removal is expected to save the government RM45 million per month — or RM135 million over the May to July period," he said.

Mohamad also assured the public that egg supply remains stable and prices are reasonable, despite the subsidy removal. For July alone, domestic egg production is estimated at 1.75 billion eggs, while local consumption stands at approximately 1.06 billion, resulting in a surplus of about 690 million eggs, he said.

Mohamad also highlighted that the annual inflation rate for eggs dropped by 5.3% in May 2025. However, he pointed out that this decline was not uniform across all egg grades, likely due to ongoing price adjustments under the targeted subsidy system.

He added that the ministry, in collaboration with the Ministry of Domestic Trade and Cost of Living, will continue its monitoring and enforcement efforts to ensure price stability and prevent leakages that could negatively impact consumers.

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