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The Finance Ministry says the government will consider implementing a more targeted subsidy mechanism so that only those who are truly in need of assistance benefit from it. – The Malaysian Insight file pic, August 23, 2022.

THE government will consider implementing a more targeted subsidy mechanism so that only those who are truly in need of assistance benefit from it, Deputy Finance Minister Mohd Shahar Abdullah said.

Moving forward, he said the government remains committed to ensuring the people’s wellbeing, including protecting households from the full impact of rising commodity and food prices worldwide.

“Following the government’s move to continue and enhance the subsidies, the expenditure for aid and subsidies is estimated to increase to RM77.7 billion compared with Budget 2022’s allocation of RM31 billion,” he said in a speech at a Budget 2023 consultation event at the Finance Ministry in Putrajaya, today. 

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Shahar said Malaysia’s inflation rate would have reached 11.4% if it was not for the government’s move to subsidise essential items, adding that the rate remains under control due to the implementation of price control measures and the granting of subsidies.

“The national inflation rate in the first six months of 2022 stood at 2.5%, which is much lower than in other countries.

“This is especially so when you look at developed countries such as the United States and the United Kingdom, with inflation rates of 9%, as well as regional countries such as Thailand, the Philippines and Singapore, which reached above 6%,” he said. – Bernama, August 23, 2022.


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