Malaysia's inflation rate this year is projected to be under 2%, based on the Government's ability to exercise prudent financial management.
Deputy Finance Minister Datuk Dr Awang Adek Hussin said that this was primarily due to the success in maintaining the prices of essential items such as rice, sugar, cooking oil and fuel through subsidies.
He was speaking to reporters after officiating the AGM of Bachok Fishermen's Association and the handing over of cash living allowances to fishermen at Pangkalan Petah yesterday.
Awang Adek was responding to a statement by Bank Negara that last year's inflation rate was at 1.6%, lower than that of the United States at 2.1%, Singapore (4.6%), Indonesia (4.3%) and Thailand (3%).
He said subsidies had helped curb inflation, unlike some other countries which were unable to do so for goods.
“For example, the sugar price is RM2.50 a kilo in Malaysia compared with RM4.50 in most other countries.
“Malaysia's fiscal policy does not encourage inflation and the Government will continue to work towards curbing it,” he added. -