KUALA LUMPUR (April 30): Malaysian poultry stocks rose on Wednesday, after the government decided to scrap price control and subsidies for eggs.
Teo Seng Capital Bhd (KL:TEOSENG) led the gains, climbing over 5% to RM1.02, while Leong Hup International Bhd (KL:LHI), the country’s largest poultry company, rose 1.6% to 62.5 sen. CCK Consolidated Holdings Bhd (KL:CCK) rose 1.55% to RM1.31.
Ending price controls and subsidies on eggs will help sustain producers, said an analyst from Apex Securities who covers CCK.
CCK receives about RM5 million in subsidies each year, which accounts for just 0.5% of its annual revenue, and the company can now pass on changes in costs directly to consumers without price control, the analyst said.
Other poultry-related stocks also advanced, including Lay Hong Bhd (KL:LAYHONG), which gained 4.7% to 33.5 sen, and PWF Corporation Bhd (KL:PWF), up 4.6% to 79.5 sen, following the announcement from the Ministry of Agriculture and Food Security.
Price control on eggs will end on May 1, while subsidies on eggs will be reduced to five sen per unit, from 10 sen per unit, before being fully scrapped on Aug 1, 2025, the ministry said in a statement. The decision follows “sufficient and guaranteed” supply as production costs stabilised, it added.
The measure will balance supply and demand, said the Federation of Livestock Farmers' Associations of Malaysia. The trade group was consulted before the announcement, and “we fully support the government’s move”, its adviser Datuk Jeffrey Ng Choon Ngee told The Edge.
Egg production will remain stable, and there will be no sudden price hike in the near term, Ng said. However, prices of eggs after August will hinge on feedstock prices once subsidies are fully removed.