THE government has adjusted its indicators for the cost of living to align with current national developments, says Prime Minister Anwar Ibrahim, reported Bernama.

He said during prime minister’s question time in the Dewan Rakyat today that the calculations for these indicators were adjusted based on various aspects of household expenditure not typically taken into account by many other nations.

“Kuala Lumpur’s needs are not the same as Hulu Terengganu’s needs. As such, the index has to be adjusted, and this is being done based on a meeting that determined cost of living levels based on current developments.

“We have also taken into account the Malaysian diet, clothes and shoes, housing, electricity, gas, recreation, and so on which are not generally taken into consideration for the cost of living in other countries,” he said.

Anwar was responding to Rosol Wahid (Hulu Terengganu-PN) on the development of these indicators and what initiatives the government has or is launching based on them.

He said the initiatives launched based on cost of living indicators include increased subsidies for citizens in need. 

No decision on RON95 subsidy yet

Anwar also said that the government has not made any decision yet on the subsidy rationalisation for RON95 fuel.

“Is there a possibility in the future? I will not rule out any possibilities. Our focus right now is the diesel subsidy rationalisation,” he said.

He said no policy paper has been tabled so far on expediting the rationalisation process, adding that the government has conducted subsidy rationalisation for chicken, electricity and diesel.

“These three things happened last year and this year. We see the impacts and the reaction of the people. Only then will we discuss the need,” he said.

“What is more important is that we must stop the subsidies for the rich and foreigners. We have to think of the mechanism, so that the people will not be burdened,” he added. – July 2, 2024.