It is imperative for the government and private sector to work together in enhancing national food productivity towards ensuring food security in the long term.
According to the Economic Outlook 2023 report released by Finance Ministry today, the government has taken a number of measures to mitigate the impact of food inflation, including the provision of additional consumption subsidies and cash assistance.
“The measures have cushioned the impact of inflation on the rakyat and maintained the inflation rate at a manageable level,” the report said.
“However, over-reliance on short-term policies could adversely affect fiscal sustainability.”
It also stated that the rising food prices, mainly due to supply chain disruptions following the Russia-Ukraine conflict which led to higher inflation, have affected Malaysians, particularly the low-income group.
According to the report, inflation in Malaysia has been rising in recent months from 2.2% in March 2022 to 4.7% in August 2022.
As a long-term measure to ensure competitiveness and affordability of food prices, it said the government was committed to undertaking reforms to strengthen domestic food security in the long run.
With the recent geopolitical tensions and global food inflation, it is imperative to ensure food availability, accessibility and affordability by enhancing the domestic production of food, particularly rice, fruits and vegetables, livestock and fisheries, the report said.
The government is also committed to mitigating the impact of global developments on the cost of living, particularly the low-income group.
Upskilling and reskilling programmes will be enhanced to ensure a stable standard of living in the long-term, especially for the group, it added.
