Malaysia faces higher meat, chicken and egg prices as SST bites, say feed importers

Malaysia faces higher meat, chicken and egg prices as SST bites, say feed importers



Chickens for sale at a market in Chow Kit, Kuala Lumpur. Importers said the new sales tax on feed ingredients will drive up the cost of chicken, eggs and meat in Malaysia. — Picture by Firdaus Latif
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Friday, 12 Sep 2025 9:35 AM MYT


KUALA LUMPUR, Sept 12 — The Association of Commodities Importers for Animal Feed Malaysia (ACiAFM) has called on the government to rethink imposing the Sales and Service Tax (SST) on certain imported feed raw materials, warning that the move will inevitably push up the cost of chicken, eggs and meat.

According to The Star, around 30 per cent of raw ingredients used in feed — including soybeans, wheat pollard, canola meal and vitamin premixes — are now subject to a 5 per cent SST.


ACiAFM interim president Chong Kam Weng said the burden would fall on consumers as importers and livestock farmers passed on the higher costs.

“With 30 per cent of them subjected to a 5 per cent sales tax, this translates to RM170mil in additional costs,” he said, as cited by the national daily.


“Therefore, the total additional cost of this SST will be passed down to consumers, making poultry and livestock products more expensive. It will also render Malaysian producers less competitive compared to regional players.”



Chong urged the Finance Ministry to grant exemptions for feed raw materials, noting that the association had already raised the issue with Deputy Finance Minister Lim Hui Ying in August.

While key inputs such as corn, soybean meal, palm oil and palm kernel cake are exempt, these only make up about 70 per cent of feed ingredients. The total value of raw materials used in feed is estimated at RM11 billion.


The tax, which came into effect on July 1, also applies to a broad range of goods including king crabs, salmon, cod, truffles, silk, imported fruits (except apples and oranges), essential oils and industrial machinery.

To ease the impact, ACiAFM has proposed allowing feedmillers and livestock farmers to register for SST even though their products are not taxable. This would enable them to claim exemptions under Schedule B or C.

“By doing so, we can preserve the competitiveness of Malaysian producers and prevent an increase in the cost of chicken, eggs and meat, as farmers will be able to claim exemptions on 30 per cent of raw materials currently subject to SST,” Chong reportedly said.

He added that exemptions should be restricted to feed production, while industries using the same materials for higher-value goods such as vitamin premixes or processed foods should continue to pay the tax unless the government decides otherwise.

Meanwhile, Federation of Livestock Farmers Associations of Malaysia president Sim Zhi Zhan also told The Star that stakeholders were still waiting for an official response from the Finance Ministry.

“Many stakeholders had submitted requests for an SST waiver on certain feed products, but we have yet to receive any update on the matter.

“The cost of production will inevitably increase when SST is imposed on raw materials, and eventually this may also influence the price of broilers. However, it is difficult to generalise the situation as the actual impact will vary from company to company,” he said.