Cronies are obtaining grants to set up new poultry farms

More of Malaysia’s strategic food industries are falling into the hands of politically connected business people

Existing poultry farmers are being put out of business due to price ceilings, while politically connected business people are taking control of more food industries. This has been due to the rapidly rising of input prices, which poultry farmers claim are controlled by cartels.

According to Utusan Malaysia “Industry internal sources revealed to Utusan Malaysia that these cartels control almost 70 per cent of the total supply of 2.2 million chickens in the market every day at present, which is about 1.5 million chickens.”

“They created business networks to control other sectors in the country's poultry industry, including controlling the production of chicken bran feed, controlling the import of corn for feed ingredients, controlling illegal frozen chicken import activities as well as monopolizing frozen chicken import permits (AP).”

Malaysian consumers have been facing shortages of poultry meat across the country for months.

While existing poultry farmers are being forced out of business due to price ceilings, crony businessmen are receiving grants of up to RM 2 million to set up new farms to take advantage of the shortages.

More of Malaysia’s strategic food industries are falling into the hands of cronies.

Here are some pictures of a new facility being set up:

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