What mitigation measures are being implemented to control inflation?

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Mitigation Measures to Control Inflation

The Malaysian government is implementing a multi-pronged strategy to manage inflation, focusing on targeted subsidies, logistics cost control, and financial support for small businesses. These measures aim to keep the inflation rate within the projected range of 1.5 to 2.5 per cent for the year, despite global economic pressures. The latest recorded inflation rate stands at 1.9 per cent, significantly lower than the global average.
Targeted Fuel Subsidy Distribution

A key component of the government's strategy involves the targeted distribution of fuel subsidies. This approach aims to ensure that subsidies reach the intended recipients, thereby mitigating the inflationary impact of rising energy costs without broadly subsidising consumption.
Control of Logistics Costs via SKDS

To further address cost pressures, the government is actively controlling logistics expenses. This is being achieved through the Subsidised Diesel Control System (SKDS), which is designed to manage and potentially reduce the operational costs for businesses reliant on diesel, thereby preventing these costs from being fully passed on to consumers.
Financial Support for Small Businesses

Recognising the vulnerability of smaller enterprises to economic fluctuations, the government is providing substantial financial assistance. An additional RM5 billion in financing is being made available through the Business Financing Guarantee Scheme (SJPP) and facilities offered by Bank Negara Malaysia. This aims to bolster the resilience of small businesses and help them navigate the current economic climate.

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What mitigation measures are being implemented to control inflation?

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