Kuala Lumpur (VNA) – Finance Minister Zafrul Aziz has said Malaysia’s inflation may reach around 11% if the government does not implement subsidies for essential items like fuel.
The minister told the press that Malaysia’s inflation is forecast to be 2.2%-3.2%. In fact, for the first six months of the year, inflation was around 2.5%, and that was largely due to the large size of subsidies that the government introduced.
Malaysia’s inflation, as measured by the consumer price index, increased 3.4% year-on-year in June, led by costlier food, the Department of Statistics Malaysia said on July 22.
Nonetheless, Tengku Zafrul acknowledged that the current blanket subsidy policy is not sustainable for the country, but it is necessary for economic recovery in the short term.
The government is managing the economy cautiously, and the monetary policy has been further tightened, he said.
In terms of economic growth, Tengku Zafrul said despite the US economic slowdown, the Malaysian government is still optimistic about recording GDP growth in 2022 due in part to low base effect and economic reopening.
However, he cautioned that the challenge lies in 2023, when asked whether Malaysia could avoid a recession given that the country is an open economy with an estimated 120% trade-to-GDP ratio./.
- GDP | Services power double-digit expansion
- FM Nirmala Sitharaman bullish on double-digit GDP growth
- Shrimp exports to US, China endures double-digit decrease in July
- Southern lottery firms post double-digit profit growth
- Digital payments a public good, no plans to levy charges: Finance minister Nirmala Sitharaman
- NBFCs to see four-year high AUM growth, touch double digits again
- India likely to post double-digit growth for April-June on low base, improved demand
- Bajaj Electricals CFO focuses on cost optimisation to achieve double-digit margins
- The State of the Nation: Export data’s double-digit streak continues in July but caution ahead
- German inflation hits highest level in almost 50 years
- Tata Motors expects commercial vehicle industry to grow in double digits this fiscal
- ‘Fast start finance for climate change has not even passed double digit'
- New Data Protection Bill To Be Ready Soon, Says Finance Minister Nirmala Sitharaman
- Korean finance minister admonishes speculators, vows coordinated response
- Expect CV industry growth to be in double digits this fiscal: Tata Motors ED Girish Wagh
- Seattle Mariners Hit A Digital Transformation Home Run
- Bankers set eyes on double-digit loan growth in FY23 as credit demand makes comeback
- Why are homes so expensive now in Lafayette? Double-digit hikes 'unbelievable and unsustainable'
- State pensioners could see ‘purchasing power’ weakened despite new Prime Minister
- Millions of pensions face £25,000 lifetime hit as inflation soars: 'Dramatically impacted'
Malaysia’s inflation may hit double digits: Finance Minister have 423 words, post on en.vietnamplus.vn at August 9, 2022. This is cached page on Talk Vietnam. If you want remove this page, please contact us.