Malaysia plans record $18 billion subsidy spend in inflation fight
KUALA LUMPUR (Reuters) – Malaysia is anticipated to spend 77.3 billion ringgit ($17.6 billion) in subsidies and money help this yr, the biggest quantity in historical past, to assist mood the consequences of rising costs, its finance minister mentioned on Saturday.
Costs of products have jumped in Malaysia in current months on account of provide chain disruptions, labour shortages and the influence of struggle in Ukraine. Meals inflation rose 5.2% from a yr earlier in Might, the very best since November 2011, authorities information confirmed this week.
Malaysia is projected to spend 51 billion ringgit on shopper subsidies together with for gasoline, electrical energy, and meals, assuming that commodity market costs stay at present ranges, Finance Minister Tengku Zafrul Aziz mentioned in an announcement.
The federal government can even distribute 11.7 billion ringgit in money help, and 14.6 billion ringgit in different subsidies, he mentioned.
Malaysia mentioned on Wednesday it will disburse practically $400 million this month to assist households address rising meals and residing prices.
Earlier this month, it mentioned a rise in authorities income from rising commodity costs was inadequate to offset an anticipated spike in subsidy spending this yr.
($1 = 4.4000 ringgit)
(Reporting by Rozanna Latiff; Modifying by Frank Jack Daniel)
