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Malaysia is expected to see a slight rise in inflation, but it will remain below the typical three per cent rate following the implementation of targeted diesel subsidies, according to Universiti Putra Malaysia (UPM) economist Associate Professor Dr Ahmed Razman Abdul Latiff.
Currently, Malaysia's inflation rate stands at 1.8 per cent and Razman predicted a potential increase to two per cent, which he considered manageable.
He stressed that the diesel subsidy targeting is designed to be minimally impactful, as it continues to cover key sectors, including ten types of public transport and 23 types of goods transport under the Subsidised Diesel Control System (SKDS).
"From the consumer's perspective, the fear of increased prices for goods and services might be unwarranted, as sectors using diesel for operations have not seen price hikes due to exemptions in the subsidy targeting," he told Sinar recently.
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