Food stalls in Singapore serving the national dish face the prospect of bankruptcy as Malaysia bans chicken export amid a worsening global food crisis.
Singapore is bracing for a shortage of its de-facto national dish, chicken rice, as major supplier Malaysia halts all chicken exports.
Restaurants and street stalls in the city-state are faced with hiking prices of the staple food or shutting down altogether as their supplies dwindle from neighbouring Malaysia, where production has been disrupted by a global feed shortage.
Malaysia’s export ban is the latest sign of growing global food shortages as countries, reeling from the effects of ongoing Russia-Ukraine conflict, extreme weather, and pandemic-related supply disruptions, scramble to shore up domestic supplies and tame food inflation.
Daniel Tan, owner of a chain of seven stalls called OK Chicken Rice, said Malaysia’s ban will be “catastrophic” for vendors like him.
“The ban would mean we are no longer able to sell. It’s like McDonald’s with no burgers,” he said.
He added his stalls usually source live birds from Malaysia but will have to switch to using frozen chicken within the week and are expecting a “strong hit to sales” as customers react to the change in quality of the dish.
Singapore, although among the wealthiest countries in Asia, has a heavily urbanised land area of just 730 square km and relies largely on imported food, energy and other goods.
Nearly all of its chicken is imported: 34 percent from Malaysia, 49 percent from Brazil and 12 percent from the United States, according to data from Singapore Food Agency (SFA).
A plate of simple poached chicken and white rice cooked in broth served with a side of greens is a dish beloved by the country’s 5.5 million people, and is usually widely available for about S$4 ($2.92) at eateries known as hawker centres.
The SFA has said the shortfall can be offset by frozen chicken from Brazil, and has urged consumers to opt for other protein sources like fish.
Malaysia, itself facing soaring prices, has decided to halt chicken exports until local production and costs stabilise.
Prices have been capped since February at 8.90 ringgit ($2.03) per bird and a subsidy of 729.43 million ringgit ($166 million) has been set aside for poultry farmers.
Chicken feed typically consists of grain and soybean, which Malaysia imports. But the government is having to consider alternatives amid a global feed shortage.
Lower quality feed means the birds are not growing as fast as usual, slowing down the entire supply chain, said poultry farmer Syaizul Abdullah Syamil Zulkaffly.
Previously, Syaizul’s farm of broiler chicken was able to harvest as many as seven times a year, with 45,000 birds harvested per cycle. This year he expects only five harvest cycles.
Syaizul, who started feeling the pinch of higher operating costs during the pandemic, says the export ban will only make things worse for poultry farmers.
“I don’t know if this industry can sustain me … for the next five or 10 years,” he said, adding that he’s had to go into debt to keep up with costs.
“Maybe I should go work at a petrol station or something is even better, less headache than actually managing a chicken farm.”
Commonwealth Enterprise and Investment Council (CWEIC) has announced decision to establish its office in the Maldives, and appoint President Dr. Mohamed Muizzu’s Principal Advisor Mohamed Ali Janah as its Country Chair.
CWEIC in a statement on Thursday, said the office will be established to connect the Maldives government with international investors and businesses.
The Maldives hub office of CWEIC will play a vital role in seeking prospective investment opportunities from all 56-member nations of the Commonwealth. The office will also enhance strategic alliances and partnerships between these countries and the Maldivian government.
Veteran entrepreneur, Janah boasts of over 30 years of business relations with the Middle East.
An agreement has been signed by the Maldivian administration with UAE’s International Free Zone Authority (IFZA) to develop Special Economic Zones (SEZ) in the Maldives.
The agreement, officially co-signed by Minister of Economic Development and Trade Mohamed Saeed and IFZA Chairman Martin Gregers Pedersen during a special ceremony, marks a significant milestone in economic development.
Speaking at the ceremony, Minister Saeed emphasized the timeline for finalizing the agreement, committing to reach a consensus within the next four months. As part of the agreement, Fonadhoo in Kaafu Atoll will be transformed into a financial hub, featuring a new financial center and a bridge connecting Male’ and Hulhule. IFZA will bear the expenses for these developments.
The Ministry of Economic Development and Trade further highlighted plans for the Economic Gateway project in Ihavandhippolhu, aiming to attract investors with IFZA’s expertise. Addressing the attendees, Chairman Pedersen expressed confidence in the success of the project, underscoring collaborations with investors to further enhance opportunities in the Maldives.
The development of SEZs remarkably aligns with the President Dr. Mohamed Muizzu’s vision to diversify the economy and stimulate financial growth. The Maldivian administration is optimistic about attracting future investments and positioning the country as a desirable destination for business opportunities.
Ministry of Finance has revealed a remarkable surge in the government’s revenue generated as of April 25, which exceeds USD713 million. The latest weekly fiscal report publicised by the ministry indicates that this contributes to a 3.7% increase in revenue in comparison to the revenue of USD693 million, generated within the same period, in 2023.
The fiscal report shows that the revenue comprises USD 596 million in tax revenue, USD116 million in non-tax revenue, and USD3 million in aid received. Tax earnings include import duty, business and property tax (BPT), goods and services tax (GST), as well as earnings from GST. The breakdown of revenue generation includes USD45 million from import duties, USD168 million from BPT, USD330 million from GST, USD24 million from green tax, USD22.6 million from airport service charges, and departure tax.
Expenditures until April 25 totalled USD817 million, with USD629 million allocated to recurrent expenses and USD181 million to capital expenditures. This represents a significant reduction in expenditures compared to the USD244 million spent by the government in 2023, during the corresponding timeframe. Recurrent expenses cover USD207 million for salaries and allowances and USD408 million for administrative work. Meanwhile, capital expenditure primarily encompasses expenses related to structural development.