LET MARKET MECHANISM DECIDE POULTRY PRICING

KUALA LUMPUR, May 5 (Bernama) -- 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 price, says the
chairman of KFC Holdings (Malaysia) Bhd Muhammad Ali Hashim.

"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 here Monday.

Muhammad Ali made the comments in response to a media report Monday 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 for fowl.

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 May 13.
Earlier at the forum, KFC Holdings (Malaysia) signed a memorandum of
agreement with Yum! Restaurants (India) Pvt Ltd to operate KFC restaurants in
India.
-- BERNAMA