Cost of living a key concern

FOR economists who study Malaysia, one of the most striking aspects they notice is the disconnect between two perspectives. On the surface, this country is by all means an impressive economic story with high rates of growth, rapid poverty reduction, low and stable inflation and is on the cusp of achieving high-income status. On the other hand, there are persistent and growing concerns about the quality of growth and its inclusiveness.

Nowhere is this disconnect more apparent than when the low rate of consumer price inflation – at just 1.1% in October 2019 – is contrasted against the fact that so many Malaysians are worried about the cost of living. The latest edition of the World Bank Malaysia Economic Monitor launched last week investigates this matter.