2017 Budget: Focus on rising cost of living

In formulating the 2017 Budget, the government will review the rising cost of living, particularly its effect on those in the B40 and M40 groups.

With the increase in the general price level, it is argued that the B40s and M40s are finding it difficult to sustain their standard of living, the Finance Ministry said in a statement today.

"By and large, Malaysians spend 31.2% of their disposable income on food and food away from home, 23.9% on petrol, housing and utilities, and 14.6% on transportation.

"With the change in lifestyle, the basket of necessary goods today includes cars, hand phones, computers and Internet access," it said.

Announcing that the 2017 Budget is scheduled to be tabled on October 21, 2016, the ministry said being people-centric, the government is committed in addressing the issue in a holistic way to enhance the well-being of the rakyat.

In addressing the rising cost of living, the ministry said, there are two main components that need to be examined closely, namely prices of essential goods and services and income.

The statement was issued in conjunction with the 2017 Budget Focus Group Meeting: Cost of Living held at the Ministry of Finance Complex here today.

Also present at the meeting were Second Finance Minister Datuk Johari Abdul Ghani, Treasury Secretary-General Tan Sri Mohd Irwan Siregar Abdullah, private sector representatives, non-governmental organisations and relevant government agencies.