RM77.7 billion subsidies to lessen the high cost of living challenges –PM Ismail

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BANDAR SERI JEMPOL: The Malaysian economic growth in the second quarter of 2022 is the highest in ASEAN region and higher than several developed nations such as China 0.4 per cent, United States of America (1.6 per cent), Korea (2.9 per cent), EU (4.0 per cent), Singapore (4.4 per cent), Indonesia (5.4 per cent) and Philippines (7.4 per cent).

Prime Minister, Datuk Seri Ismail Sabri Yaakob said, the national economy is expected to reach the target between 5.3 until 6.3 per cent considering the achievement of 6.9 per cent in the first half of 2022.

Earlier Ismail said, Malaysia is not only significant to the world but has proven the economic achievement with the Gross Domestic Product (GDP) growth of 8.9 per cent in the second quarter of 2022 compared to 5.0 per cent in the first quarter of 2022.

Ismail added the increase in prices is a global phenomenon that has been experienced by most countries. However, the national inflation rate was 4.7 per cent in Aug. 2022 that was much lower compared to several countries in the region and other countries namely Euro Zone with 9.1 per cent, United States of America (8.3 per cent), Thailand (7.9 per cent), Philippines (6.3 per cent), and Republic of Korea (5.7 per cent).

“The low inflation rate in Malaysia is due to the effect of the government’s intervention measures in stabilising the prices of commodities via the subsidy provisions totalling RM77.7 billion- the biggest amount in the history of Malaysian finance.

“This is to ensure Keluarga Malaysia is not burdened with the cost of living challenges,” Ismail said in his speech in conjunction with the “Negeri Sembilan Keluarga Malaysia Aspiration Tour” held at Dataran Seri Jempol, Jempol on Saturday 8th Oct.2022.

The Prime Minister cited the commodities subsidised by the government namely petrol, diesel and LPG (RM41.7 billion), cooking oil 1 kg packet and bottled oil (RM3.0 billion), electricity bill (RM5.8 billion), other uses (RM1.5 billion), and other aids such as cash money, education, transportation and agriculture (RM25.7 billion).

“If the subsidies are not provided, the national inflation rate will reach up to 10.6 per cent. With the amount of subsidies that continue to increase, the allegations of some parties saying that the government has pulled out the subsidies of several basic commodities are baseless,” Ismail said.

He added, the momentum of economic recovery is not only the growth of Gross Domestic Product (GDP) but also when the unemployment rate has dropped from 5.3 per cent in May 2020 to 3.7 per cent in June 2022. – Malaysia World News

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