New cost of living strategy should be implemented by April, economists urge

SHAH ALAM - Economists say the new strategy drafted by the Economy Minister, Rafizi Ramli with other ministries to cope with the rising cost of living needs to be done immediately.

University College i-CATS Kuching economist, Professor Datuk Dr Shazali Abu Mansor said it should be implemented by April at the latest.

"Give them a month or so to frame and implement it. However, it should not take long, the longest is until April.

"This is because by this time the people would feel the burden and may not be able to withstand the cost hike," he told Sinar.

Shazali added the government could also give out targeted assistance such as vouchers to low-income group.

"Many foreign countries issue food vouchers. This is a good step as only certain people can receive and utilise it. So, those who can afford would use their own money," he added,

Rafizi said during a press conference on Wednesday that the government together with several other ministries are drafting new coping strategy to tackle cost of living which among them are to increase the domestic production.

Rafizi explained that it involves short and long term strategic which will be announced soon.

The ministries involved are Economy ministry, Domestic Trade and Cost of Living ministry (KPDN), Agriculture and Food Security ministry (MAFS), Finance ministry (MOF) and related agencies.

Economist Dr Nungsari Ahmad Radhi said as a short term solution, the government needs to directly help affected households to ensure their nutritional level is maintained.

Meanwhile, DM Analytics Senior Researcher, Zouhair Rosli said, among other things that needs to be taken into account is to cooperate with Human Resources Ministry (KSM) by increasing minimum wage.

"Our current salary is indeed low. When there is an increase in goods, it becomes a burden," he added.