Malaysia plans record $18 billion subsidy spend in inflation fight

A Malaysia Ringgit word is seen on this illustration picture June 1, 2017. REUTERS/Thomas White/Illustration/Recordsdata

KUALA LUMPUR, June 25 (Reuters) – Malaysia is anticipated to spend 77.3 billion ringgit ($17.6 billion) in subsidies and money support this 12 months, the biggest quantity in historical past, to assist mood the results of rising costs, its finance minister stated on Saturday.

Costs of products have jumped in Malaysia in latest months as a result of provide chain disruptions, labour shortages and the impression of battle in Ukraine. Meals inflation rose 5.2% from a 12 months earlier in Could, the best since November 2011, authorities information confirmed this week.

Malaysia is projected to spend 51 billion ringgit on client subsidies together with for gas, electrical energy, and meals, assuming that commodity market costs stay at present ranges, Finance Minister Tengku Zafrul Aziz stated in a press release.

The federal government may also distribute 11.7 billion ringgit in money support, and 14.6 billion ringgit in different subsidies, he stated.

Malaysia stated on Wednesday it will disburse practically $400 million this month to assist households address rising meals and dwelling prices. learn extra

Earlier this month, it stated a rise in authorities income from rising commodity costs was inadequate to offset an anticipated spike in subsidy spending this 12 months.

($1 = 4.4000 ringgit)

Reporting by Rozanna Latiff; Enhancing by Frank Jack Daniel

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