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KFC Chief Talks Chicken Pricing

by 5m Editor
5 May 2009, at 8:47am

MALAYSIA - Chairman of the local Kentucky Fred Chicken (KFC) business believes that poultry pricing should be left to market mechanisms. At the same event, KFC Holdings (Malaysia) signed a memorandum of agreement with Yum! Restaurants (India) Pvt Ltd to operate KFC restaurants in India.

The market mechanism within the poultry industry should be able to decide if there is a need to involve any government-linked company (GLC) in countering the problem of rising chicken prices, says the chairman of KFC Holdings (Malaysia) Bhd Tan Sri Muhammad Ali Hashim. His comments are reported by Bernama.

"To me, if there is a problem, our market system can resolve it. Whether there is GLC or not, that is secondary. Most importantly, if there's a gap to be filled in the market, the market will respond," he told reporters after the opening ceremony of the Fourth World Halal Forum 2009 in Kuala Lumpur on 4 May.

Muhammad Ali made the comments in response to a media report today on the proposal by Persatuan Pengguna Islam Malaysia (PPIM) that a GLC company be appointed to head the country's poultry industry to ensure sufficient supply of chicken and lower prices.

He said there was no restriction on any GLC wanting to get involved in the industry but it would have to be on the basis of business.

"This is a business issue, let the market mechanism work. If coincidentally, GLCs can solve the problem, fine, but it is not because they are GLCs, but because they are operating through the market," he said.

Malaysia has an open economic system, not dominated by GLCs.

"To me, it does not necessarily have to be the GLCs, anybody will be able to (resolve the problem). GLCs cannot be doing everything in the country, so I think it depends on the private sector players," Muhammad Ali said.

The Ministry of Domestic Trade and Consumer Affairs is expected to present two proposals on the matter at the Cabinet meeting scheduled this for 13 May.

Earlier at the forum, KFC Holdings (Malaysia) signed a memorandum of agreement with Yum! Restaurants (India) Pvt Ltd to operate KFC restaurants in India, reports Bernama.