Inflation will go beyond 10pct without subsidies – PM

 The inflation rate in Malaysia could exceed 10 per cent if the government ceases subsidies for essential goods such as rice, sugar, fuel and electricity.

(NST) – Prime Minister Datuk Seri Anwar Ibrahim said the government will spend RM64 billion this year to ensure the people, especially those in the Bottom 40 income group (B40) can continue to benefit from subsidies.

He said it was among the government’s efforts to reduce the burden on the people, especially with the recent Overnight Policy Rate (OPR) increase.

Other measures, he said, included targeted social aids including cash assistance Sumbangan Tunai Rahmah (STR) and Rahmah sales programme to ease the impact of the rising cost of living due to reduced disposable income, among others.

“The government has disbursed cash aid under Sumbangan Tunai Rahmah (STR) phase 1 totalling RM1.67 billion from Jan 17.

“STR will be continued with several enhancements ensuring affected households benefit more from it,” he said in a written reply to a question from Datuk Seri Shahidan Kassim (PN-Arau).