Find ways to boost people's incomes, BNM urges government

Bank Negara Malaysia (BNM) has urged the government to be more aggressve in finding ways to boost the people's incomes amid rising living costs.

Deputy Governor Abu Hassan Alshari Yahya said in several studies conducted by the central bank, many people complained that cost-of-living increases in urban areas had affected their well-being despite the government predicting inflation this year at between just 2.5 and 3.5 per cent.

"In the studies, urban residents reported facing a higher inflation rate of between four and five per cent, depending on location.

"The low-income groups also felt inflation was high due to higher food costs, so they do not believe in the government's forecast," he said at a briefing on economic development at Bangunan Datuk Jaafar Muhammad, Wednesday.

He said urban married couples with at least two children said they needed to have a household monthly income of at least RM7,200 to live comfortably while newly married couples quoted a figure of RM4,200.

"Anything less and they would voice dissatisfaction," he said.

Abu Hassan said the government should encourage companies to upgrade their workers' skills to enable them to earn higher incomes.

"Companies should also use technology to improve their business efficiency, so that their skilled workers can be given higher salaries," he added.