PUTRAJAYA: The Economy Ministry expects Malaysia's inflation rate to remain under control at between 1.5 and 2.5 per cent throughout this year despite pressure from the energy supply crisis and global geopolitical uncertainties.
Economy Minister Akmal Nasrullah Mohd Nasir said the government is committed to ensuring that inflation does not have a major shock effect on the economy and the people’s cost of living even though price pressures are expected to continue.
He said the country's latest inflation rate was recorded at 1.9 per cent, much lower than the global inflation forecast of around 4.3 per cent.
"For 2026, our comfortable projection is for inflation to occur between 1.5 and 2.5 per cent. This is our target so that inflation movements remain within the scope that we can handle and do not have a significant impact on the people,” he told the media after the monthly gathering of the Economy Ministry here today.
He said this when asked to comment on the expected inflationary pressure in the second quarter of this year following the disruption of global energy supplies and its impact on the transportation and food sectors.
Akmal Nasrullah said the current inflationary pressure was due to the increase in costs related to oil supplies and input goods needed to maintain economic activity.
In this regard, he said the government is continuing various mitigation measures including the targeted distribution of fuel subsidies, control of logistics costs through the Subsidised Diesel Control System (SKDS), as well as additional financing of RM5 billion through the Business Financing Guarantee Scheme (SJPP) and Bank Negara Malaysia facilities to help small businesses survive.
However, Akmal Nasrullah said inflationary pressures could increase if the global crisis continues.
"So far, we have managed to maintain inflation at around 1.9 per cent, but the pressure will continue to have an impact. That is why we continue to look at official data and the actual situation at the industry level so that intervention measures can be taken earlier,” he said. - Bernama
