Malaysian Prime Minister Ismail Sabri Yaakob said on 20 August that Malaysia will take up to two more months before deciding whether to lift the chicken export ban.
Despite the current oversupply of chicken, PM Ismail said that a delay was needed to ensure sufficient domestic supply and stable prices.
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Wait Till Subsidy Ends To Decide
In a programme broadcast over Malaysian TV stations, PM Ismail shared that the Cabinet has discussed this issue, but can’t make a decision till the chicken subsidies end on 31 August.
If there is still an oversupply of chicken and if the price is low after 31 August, Malaysia may be able to allow exports.
Currently, Malaysian chicken prices have been kept below the government-instated ceiling of RM9.40, or S$2.90, per kilogram. According to Malaysian officials, the chicken industry’s supply and inflation issues have also been resolved.
Chicken Export Ban in Malaysia
On 1 June this year, the Malaysian government initially announced that they were banning the export of around 3.6 million chickens from Malaysia.
This was to allow the country to rectify problems regarding chicken supply and pricing that Malaysians have been complaining about.
In particular, there were traders who priced their chickens above the price ceiling during the supply shortage in order to make up for their costs.
To address that issue, the Malaysian government implemented a new price ceiling for standard chicken, with the ceiling price being RM9.40 (approximately S$2.90) per kg from 1 July onwards.
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Singapore’s Response to the Ban
After the ban was announced, Singapore, which used to import 34%, or around one-third, of its fresh chicken supply from Malaysia, turned to other countries such as Indonesia and Thailand to purchase chickens.
Most chickens from Malaysia were exported to Singapore while they were still alive. Thereafter, these chickens were slaughtered and chilled in Singapore.
There has been some loosening of the ban since June: for instance, Malaysia allowed exports of kampung chicken, black chicken, and chicken-based products in mid-June.
However, we have since started importing frozen and chilled chickens from other countries, which has helped us overcome the chicken shortage.
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