KUALA LUMPUR, July 2 — Prime Minister Datuk Seri Anwar Ibrahim today said indicators to measure living costs have been modified to ensure that they are in line with the country’s current development.
Anwar said current indicators were calculated based on household expenses, which are generally not included in the living costs indicator in most countries.
“The current situation demands a change because what is required in Kuala Lumpur may not necessarily be required in Hulu Terengganu. The index should be modified and this is being done based on the results of the meeting that set the cost of living in line with current developments.
“We also take into account neutral consumption, such as the Malaysian diet, including food, non-alcoholic beverages, clothing and footwear, housing, water, electricity, gas, decoration, health, transport, information and communication, recreation, sports and education services, which are general aspects not included in living cost assessments in most countries,” he said in reply to Datuk Rosol Wahid during Ministers’ Question Time.
Rosol asked about updates on the new indicators and programmes implemented by the government based on findings of the indicators.
Anwar said the report of the new calculation will include the marginal propensity to consume and purchasing power parity.
On programmes implemented based on living cost indicators, the Prime Minister said it includes increasing the amount of subsidies and the implementation of targeted diesel subsidies.
“There may be a problem in the implementation of the programmes that we need to deal with, but let’s not forget that there used to be a lot of leakages… We cannot deny that foreigners, including foreign fishermen, have been benefiting from leakages in the diesel subsidy, too.
“That’s why when we have effective enforcement, we can save (funds) and return it to the people,” he said.
— Bernama
