[UPDATED] Low inflation thanks to govt’s over RM70 bil subsidies: Ismail Sabri

KUALA LUMPUR – Prime Minister Datuk Seri Ismail Sabri Yaakob (Bera-BN) is crediting the “relatively low” inflation rate of 2.8% to the government’s various subsidies amounting to more than RM70 billion.

Stressing that Putrajaya is willing to spend to ensure that citizens do not suffer too much from inflation-related issues, he said the move also proves the government’s dedication to helping people cope with the rising cost of living.

“The government’s commitment to assisting the people’s survival with price hikes is highlighted by the increased amount of subsidies given,” he told the Dewan Rakyat today, adding that Malaysia’s inflation rate of 2.8% is the lowest compared to others in Southeast Asia.

He cited the inflation rates of other neighbouring countries to back his answer, including that of Thailand (7.7%), Singapore (5.6%) and Indonesia (4.4%).

Ismail Sabri was responding to a question posed by opposition leader Datuk Seri Anwar Ibrahim (Port Dickson-PH) regarding measures the government has taken to tackle the rising cost of living and guarantee affordable price stability. 

Last month, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the total amount of subsidies is expected to reach RM80 billion this year, the largest amount in national history. 

Listing out details on the allocated subsidies, he said the government spends RM4 billion on cooking oil, RM40 million on flour, RM2.6 billion on liquefied petroleum gas, RM7.5 billion diesel and RM27 billion on petrol.    

He added that certain quarters who are calling for the government to continue providing subsidies are doing so untruthfully, and that the government has never eased on subsidies for consumers and have instead increased its expenditure. 

“If there are any campaigns calling for subsidies to remain in place, it is not right to do so, because we never pulled back the subsidies in the first place.”

On July 1, Amanah had organised a protest to vent their frustrations over the rising prices of goods, warning that they would hold a bigger gathering if authorities do not meet their demands. 

Among the demands outlined by the party include for the government to return food subsidies and for the issue to be raised in the next Parliament sitting.

A coalition of student youth activist groups had gathered for a peaceful demonstration at the Pasar Seni LRT station the next day to air their grievances on the same matter. 

A Universiti Malaya student at the event had told The Vibes that the government’s establishment of a special inflation task force – announced on June 29 – was nothing to crow about, labelling the move as one that ignores the plight of the people.  

The task force, dubbed Pasukan Khas Jihad Tangani Inflasi (Battling Inflation Task Force), has similarly been questioned by opposition lawmakers, who said that the move will only result in unnecessary expenditure and little gain.

Commenting on the task force, Ismail Sabri said that it would persist in delivering reports to the people, despite the apparent backlash the initiative has received. 

“There are people who laugh at us (because) we have various committees…but the special inflation task force looks specifically at the rising costs of goods. 

“I don’t know whether (the task force) is special, but we have meetings twice a week and we present our findings to the people.” 

Yesterday, police warned the public to avoid participating in flash mobs organised by various parties to protest the rising costs of goods after it detected a video making the rounds on social media calling on people to join a nationwide flash mob. – The Vibes, July 18, 2022