Subsidies may touch RM71bil in 2022, says Tengku Zafrul

 

Finance minister Tengku Zafrul Aziz says Malaysia is lucky as it has commodities that help to cushion the impact of fuel prices. (Tengku Zafrul Aziz Facebook pic)

KUALA LUMPUR: Malaysia is expecting to fork out more subsidies in 2022, totalling RM71 billion, with petrol subsidies alone touching RM30 billion amid the rise in crude oil prices.

Speaking at the World Economic Forum’s annual meeting in Davos, Switzerland, finance minister Tengku Zafrul Aziz said the higher subsidies had resulted in a lower core inflation rate at 2.3%.

Although inflation is on the rise, he said Malaysia is lucky because the country has commodities to cushion the impact of fuel prices, unlike other countries.

Tengku Zafrul was one of the panellists at a session titled “Global Risks in an Era of Turbulence”.

Asked whether Asian governments were able to maintain or support the price of rice for the people, Tengku Zafrul said there is a lot of government assistance to ensure that supply is secured, and at the same time, large amounts of subsidies are allocated so that the price is maintained given the importance of rice to Malaysians. - FMT