Malaysia’s inflation eases to 1.8pc in September, govt monitors global cost pressures

Malaysia's inflation rate slowed to 1.8% in September, down from 1.9% in August, suggesting price pressures were still manageable, according to the Economy Minister Akmal Nasrullah Mohd Nasir. Despite this positive trend, the government remains vigilant, monitoring global fuel price increases and production cost pressures, as reported by BuletinTV3.

Nasir highlighted that global crude oil prices surged to US$116.80 (RM472.75) per barrel, up from US$90.90 in August, while Malaysia's Producer Price Index (PPI) rose to 12% in September from 10.7% the previous month. In response to these challenges, the government has adopted a multi-faceted approach. This includes targeted subsidies to soften the impact of higher fuel prices, such as the continuation of Budi Madani RON95 and Budi Diesel programs.

The Budi95 quota was expanded to 300 litres monthly, and Budi Diesel subsidies were increased for eligible vehicle users to 400 litres. The government also maintains control mechanisms like the Subsidised Petroleum Control System (SKPS) and Subsidised Diesel Control System (SKDS) to manage transportation and goods prices without abrupt cost increases.

To further alleviate pressure on the transport and logistics sectors, the government has bolstered price and supply monitoring through platforms like PriceCatcher, focusing on essential goods. The allocation for the Jualan Rahmah Madani and Jualan Agro Madani schemes has been increased to RM750 million in 2027, with a goal of 35,000 events.

These initiatives extend assistance to rural and low-income areas, offering fresh agricultural produce at significantly discounted rates. Additionally, vulnerable groups continue to receive targeted aid, including the Rahmah Cash Contribution (STR) and Rahmah Basic Contribution (SARA), with expanded allocations to RM16 billion. This approach ensures fiscal resources target those most in need instead of blanket subsidies that benefit higher-income groups.

Strengthening economic resilience against external shocks is also a priority, involving food and energy security, domestic supply chain strengthening, productivity enhancements, and input diversification to protect the national economy from supply disruptions or prolonged global commodity price increases.