KUALA LUMPUR: The RM80bil spent by the government on subsidies and cash aid has kept inflation low, says Prime Minister Datuk Seri Ismail Sabri Yaakob.
“This has kept Malaysia’s inflation rate the lowest in South-East Asia,” he said in his speech at the Wanita Barisan Nasional convention here on Sunday (Aug 14).
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He also dismissed claims by certain quarters that Malaysia's economy was in trouble, and said it was inaccurate for these groups to say that investors were fleeing the country.
In fact, he added, Malaysia recorded 8.9% economic growth in the second quarter of the year, the highest in South-East Asia.
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The government previously said that the subsidy allocation for this year was increased to RM77bil from the original allocation of RM31bil.
This is also the largest subsidy bill in the country's history.
At the convention, Ismail Sabri said cash aid and subsidies to the people had now reached RM80bil.
