Malaysia’s inflation rate in May 2023 decreases to 2.8% compared to 3.3% in April 2023, recording a 9-month steady rate in a row.
The May 2023 inflation rate was the lowest in a year, reflecting a continued stabilising price trend.
Economy Minister Rafizi Ramli said the fall in the inflation rate for May 2023 also shows an across-the-board fall over all spending categories, signalling overall price stabilisation with the Malaysian economy.
In a statement released by the Ministry of Economy today (June 28), he said a stable inflation rate is the key to sustainable economic growth so that the country’s economy continues to grow without causing sudden demand that causes the price of goods and services (as symbolised by the inflation rate) to not soar continuously to uncontrollable levels.
Price stabilisation through a comprehensive and continuous reduction in inflation is part of the strategy to address the cost of living for the people so as not to burden them.
Rafizi said initially price stabilisation is important so as not to incur upwards spiralling prices of goods and services suddenly. Apart from policy instruments (through a combination of price controls, monetary policy and price-related incentive schemes) and enforcement, the Government is also focusing on ensuring that food supplies are doubled in the medium and long term to keep pace with market demand.
“In July 2023, the Ministry of Economy will announce an agricultural and nutrition project involving the first 1,000 acres nationwide under the Farmer Entrepreneur Initiative (INTAN) which is run as one of the People’s Income Initiative (IPR) programs.
“To carry out the projects, strategic partners from among the government’s agricultural agencies and state government agencies have been identified. The ministry will also open applications from private agricultural companies to become strategic partners under INTAN to work on the agricultural and food industry on land identified by the Government throughout the country over and above the first 1,000 acres,” he said.
He explained more information about the effort will be announced in July 2023 under the objective to double the capacity of the agricultural and food industry involving the public, private sector and people from the B40 segment and the hardcore poor who are expected to ensure a sustainable food supply for the future.
The Government’s second strategy in dealing with the cost of living is to ensure that people’s wages and income rises periodically to commensurate with the increase in the cost of living.
On this, Rafizi said, the Ministry of Economy’s focus is to develop a Progressive Wage Policy framework together with the Ministry of Human Resources to ensure a more even and inclusive wage growth, further encouraging better wages and income for all workers, especially youths.
He explained that the policy paper on the Progressive Wage Policy will be presented to the National Economic Action Council (MTEN) in August 2023 to obtain guidance from the national leadership.
“This is the first time in the country’s history that any administration has worked on a specific policy framework on equitable and inclusive wage growth for all workers. Focusing on wage growth will also be the main theme of the country’s economic planning under the upcoming Malaysia Plan,” he added.
These two integrated strategies are expected to help address the cost of living of the people through a strong and lasting solution.
