Rafizi: Inflation down to 2pct, will limit APs, IPs to lower costs

Headline inflation is at 2.0 percent as of July down from 2.4 percent in June.

In announcing the latest figures, Economy Minister Rafizi Ramli also said the government will be taking proactive measures to further bring down the cost of living.

In a statement today, he said the biggest contributor to declining inflation was inflation on food and non-alcoholic beverages, which has also continued a downtrend to 4.4 percent as of July.

A look at the data showed that in July last year, headline inflation was at 4.4 percent while inflation for food and non-alcoholic beverages was at 6.9 percent.

Rafizi said controlling inflation is a priority for the government to reduce the cost of living burden on the people.

To bring down inflation further, the minister said the government will be formulating policies to limit Approved Permits (APs) and Import Permits (IPs).

He said the policy is expected to be tabled to the National Economic Action Council (NEAC) soon.

“By reducing or limiting APs and IPs, the government hopes it can lower the price of goods, especially imported items.

“This will effectively help to improve the people’s spending power by easing the effects of inflation,” he said.

He added that the government is also looking to improve anti-monopoly and competition regulations to ensure the market is more competitive so that goods and services can be more appropriately priced.

Partnering with private sector

On a separate matter, Rafizi said the government is looking to scale up the Intan agriculture programme.

Intan is a part of the People’s Income Initiative (IPR) aimed at eradicating poverty.

The minister said that the government will introduce a new model for Intan involving partnerships with the private sector.

He said the government will allocate RM100 million for Intan projects by selected private partners.

Proposals will be considered based on criteria including experience in agriculture, reputation, good management structure, and strong financials.

Rafizi said companies that take part in this will have to train IPR participants in technical, entrepreneurial, project, and financial management, among others.

For projects on public land, land use approval will be for a minimum of five years and the government will cover all costs for the first season of planting or farming.

For projects on private land, land use approval will be at least 10 years, with the government providing funding through matching grants that are reimbursable at a rate of 50:50. - Mkini