MALAYSIA is expected to spend RM77.3 bil (US$17.6 bil) in subsidies and cash aid this year, the largest amount in history, to help temper the effects of rising prices, its finance minister said yesterday.
Prices of goods have jumped in Malaysia in recent months due to supply chain disruptions, labour shortages and the impact of war in Ukraine. Food inflation rose 5.2% from a year earlier in May, the highest since November 2011, government data showed this week.
Malaysia is projected to spend RM51 bil on consumer subsidies including for fuel, electricity, and food, assuming that commodity market prices remain at current levels, Finance Minister Tengku Zafrul Aziz said, in a statement.
The government will also distribute RM11.7 bil in cash aid, and RM14.6 bil in other subsidies, he said.
Malaysia said on Wednesday it would disburse nearly US$400 mil this month to help households cope with rising food and living costs.
Earlier this month, it said an increase in government revenue from rising commodity prices was insufficient to offset an expected spike in subsidy spending this year. – June 26, 2022.
