PUTRAJAYA (NNN-Malaysia)— Malaysia’s inflation rate could have reached up to 11.4 per cent if the government had not implemented the subsidies, according to Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed.
He said measures to ease the people’s financial burden through the provision of subsidies, aid and incentives enabled Malaysia to record an inflation rate of 3.4 per cent in July 2022.
“Of the RM77.7 billion (RM1 = US$0.22) subsidy, the highest subsidy allocation was for petroleum because RON95 is still priced at RM2.05 and diesel at RM2.15, although the international market price had exceeded the price in this country,” he said here Sunday.
Mustapa said the government had allocated RM38.3 billion — almost half of the total amount of subsidy — for RON95, diesel and liquefied petroleum gas.
Additionally, the government had allocated subsidies for cooking oil (RM4.0 billion), chicken and eggs (RM1.1 billion), electricity, tolls and others (RM8.2 billion), Malaysian Family assistance (RM8.15 billion) as well as other aids and incentives (RM18.1 billion).
Source: NAM NEWS NETWORK