KUALA LUMPUR, June 2 — The government must divert the RM729 million it allocated to subsidise chicken farming directly to low and middle-income families now that the scheme is being cancelled, said Bukit Bendera MP Wong Hon Wai.

Calling the government’s decision to end the subsidy an admission of its failure to regulate chicken prices, the federal lawmaker said the move was sure to worsen the rising prices for B40 and M40 families for whom chicken meat was a major food item.

"The government should channel the RM729 million originally allocated to chicken farmers to help 5.56 million B40 families and M40 families combined. Each family will receive roughly RM130," Wong said in a statement today.

Saying there were 2.8 million B40 households earning below RM4,851 and an equal number of M40 families making less than RM10,970, Wong said the two groups were already struggling with inflation that was outpacing official numbers.

Wong also said the problem would only get worse as the Russia-Ukraine conflict dragged on, and urged the government to take direct steps such as setting up a Food Security Stabilisation Fund and stockpiling strategic food items.

Yesterday, Prime Minister Datuk Seri Ismail Sabri Yaakob announced that chicken farmers will no longer be given subsidies from July 1, with the allocations to be channelled directly to Malaysians.

A subsidy of RM729 million was allocated to farmers to maintain the price ceiling of RM8.90/kg of chicken that has been in effect since February 2.

Poultry farmers have complained that the price ceiling made it infeasible for them to produce meat as chicken feed has risen from RM500 to RM1,900/tonne in some instances.

This has led to sporadic disruptions in local supplies and sales at prices beyond the set maximum.