Subsidies ensured inflation rate remained low in Malaysia - Mustapa

21 Aug 2022 03:50pm

Minister in the Prime Minister's Department (Economy) Datuk Seri Mustapa Mohamed at the ‘Keluarga Malaysia Symposium: Achievements and Hopes’ - BERNAMA Photo

PUTRAJAYA - 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) Datuk Seri 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 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 during the ‘Keluarga Malaysia Symposium: Achievements and Hopes’ here today.

The symposium was officiated by Prime Minister Datuk Seri Ismail Sabri Yaakob.

During his presentation titled "Keluarga Malaysia: Overcoming Economic Challenges”, 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), Keluarga Malaysia assistance (RM8.15 billion) as well as other aids and incentives (RM18.1 billion). - BERNAMA