Is the RM80 billion subsidy bill historically high for Malaysia?

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Malaysia's RM80 Billion Subsidy Bill is Historically High

Malaysia's projected subsidy expenditure of RM80 billion this year represents the highest figure in the nation's history. This significant sum is a key factor in maintaining the country's inflation rate at a relatively low level compared to global trends.
Record High Subsidy Expenditure

The Finance Minister, Datuk Seri Tengku Zafrul Abdul Aziz, announced that Malaysia's subsidy bill is anticipated to reach RM80 billion in the current year. This figure surpasses all previous historical records for subsidy spending in the country.
Impact on Inflation Control

Without the substantial government subsidies in place, Malaysia's inflation rate could have soared to over 12 per cent. This indicates the critical role these subsidies play in cushioning the impact of rising global prices on consumers.
Comparison with Asean Neighbours

When compared to other Asean nations, Malaysia's inflation rate remains notably low. For instance, Indonesia's inflation stands at 4.9 per cent, the Philippines at 6.4 per cent, Singapore at 7.0 per cent, and Thailand at 7.6 per cent. This contrasts with Malaysia's inflation rate of 2.8 per cent for the period of January to July 2022.
Global Inflationary Pressures

Globally, many countries are grappling with increased inflation due to rising production input costs and escalating energy prices. Malaysia's ability to maintain one of the world's lowest inflation rates is, in part, attributed to its substantial subsidy programme.

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Is the RM80 billion subsidy bill historically high for Malaysia?

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