Selangor Journal
A money changer counts RM50, RM100, and US$100 bill notes in Kuala Lumpur, on February 20, 2024. — Picture by BERNAMA

Govt ready to mitigate inflation increase

KUALA LUMPUR, March 6 — The inflation rate is expected to rise marginally in 2024 but is manageable with the cooperation of industry players, traders, and consumers, according to the Economy Ministry.

The Finance Ministry’s Economic Outlook 2004 report projected the inflation rate for this year is expected to be between 2.1 per cent to 3.6 per cent.

“This situation is partly due to the expected gradual transition towards a targeted subsidy implementation mechanism to ensure a more equitable distribution of resources.

“This percentage increase is within the range projected by MIDF Research for 2024, which is 3.2 per cent,” said the Economy Ministry in a written reply published on the Parliament website yesterday.

It was responding to Kuala Terengganu MP Datuk Ahmad Amzad Hashim’s query on initiatives to deal with the inflation rate following MIDF Research’s expectation that Malaysia’s inflation rate for this year will increase to 3.2 per cent.

The ministry said the government’s fiscal position is increasingly challenging and requires a commitment to retarget subsidies, which are among the key components of the operating budget.

“However, the welfare of the people as a whole needs to be prioritised.

“Thus, the government needs to choose a subsidy retargeting method which can balance the government’s goal to improve the fiscal position and simultaneously reduce the people’s living costs,” it said.

The government has also identified several programmes and initiatives to ensure the people’s welfare is preserved.

Among the initiatives are increasing the total value of the 2024 Sumbangan Tunai Rahmah (STR) to RM10 billion, ensuring the food supply and food security by increasing the stock of various food items, as well as improving distribution efficiency to ensure uninterrupted supply.

The government will continue with the Payung Rahmah initiative, including the Jualan Rahmah, Bakul Rahmah, and Menu Rahmah programmes, to reduce living costs while increasing monitoring and enforcement to curb excessive profit-making activities.

— Bernama

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