Singapore (CU)_ Malaysia’s protectionist step comes at a time when countries globally are grappling with skyrocketing food costs, spurred in part by the conflict in Ukraine. Moreover, Ukraine is a large exporter of maize and grains, which are essential poultry feed ingredients. According to the Singapore sources, chicken dealers anticipate a 30 percent increase in the price of chilled chicken, causing a hike in chicken dish costs. The Singaporean government has advised people to convert to frozen chicken and other alternative foods, and is searching for new fresh chicken markets.
In a protectionist move to enhance domestic food supplies, Malaysia will cease exporting chickens from June, causing concern in neighboring Singapore, which depends on Malaysia for its chicken supply and where chicken rice is a national dish. Last week, Malaysian Prime Minister Ismail Sabri Yaakob stated that effective June, exports of 3.6 million chickens per month will be banned until domestic prices and production return to normal.
Singapore, which imports one-third of its chicken supply from Malaysia, is most affected by this ban. Singapore imports nearly all of its chickens alive, where they are butchered and refrigerated. Local media have reported that shelves at several wet markets and supermarkets have been emptied of poultry in anticipation of the ban on fresh chicken in Singapore.
However, concern exists over the future of the popular chicken rice, which is offered everywhere from hawker stalls to five-star hotels. According to reports, the popular restaurant Tian Tian Hainanese Chicken Rice, which obtains all of its chicken from Malaysia, stated that it would launch new pork and seafood dishes instead of frozen chicken if it is unable to get new suppliers.
The prohibition created concern not just in Singapore, but also among smaller Malaysian chicken producers who rely on exports to Singapore to run their business. The Malaysian government did not specify the duration of the export ban, but authorities anticipate that supply and pricing will return to normal within a month.
