KUALA LUMPUR: Malaysia managed to avoid the worst impact of global inflation on consumers through a targeted fuel subsidy programme, which helped contain sharp increases in operating costs even as global fuel prices surged, says Economy Minister Akmal Nasir.
“If we look at global readings, global inflation is projected at around 4.3%, which has a very significant impact on consumers in terms of material costs.
“But in Malaysia, as we continue to maintain assistance through subsidies, either via the Budi Madani programme or the Subsidised Diesel Control System (SKDS), this helps restrain the increase (in inflation) from becoming too significant.
“Simultaneously, when prices show a downward trend, this is an opportunity for us to ensure that adjustments are made, and that any reduction is in line with the decrease in energy costs,” he said in the Dewan Rakyat on Monday (June 29).
He also said the government is closely monitoring whether the recent downward trend in global oil prices is being reflected in lower logistics costs and import prices for food items, as well as whether such reductions are being passed through to food production costs.
“As such, this is a matter for the Domestic Trade and Cost of Living Ministry to ensure that there is no element of profiteering or exploitation, and to prevent the burden from being passed on to consumers in a situation where operating costs have begun to decrease,” he said.
Akmal was responding to Datuk Seri Dr Ronald Kiandee (PN-Beluran), who had asked whether the government is monitoring the impact of falling global oil prices and whether this is being reflected in lower logistics costs for imported food items.
Meanwhile, Akmal said Malaysia must strengthen its position within the global economic value chain in order to improve long-term resilience.
He said the government could not continue relying on existing economic structures and must instead shift towards higher value activities to ensure sustainable growth.
He added that the energy transition remains a key focus under the Fifth Malaysia Plan, with the government committed to the agenda not only to achieve net zero emissions by 2050, but also to strengthen domestic resilience and capability.
“At present, we remain committed to the energy transition, which is not only about achieving net zero by 2050, but also about strengthening our capability and resilience, including at the domestic level.
“The game changer is happening now. Strengthening the country’s economic position is not something that can be done in two or three months, but this direction has already been set by the government.
“This continuity should not become merely a point of political contention,” he said.
