Govt to mull more targeted subsidies for those truly in need

Moving forward, he said the government remains committed to ensuring the people's wellbeing, including protecting households from the full impact of rising commodity and food prices worldwide.

"Following the government's move to continue and enhance the subsidies, the expenditure for aid and subsidies is estimated to increase to RM77.7 billion compared to Budget 2022's allocation of RM31 billion," he said in a speech at the Budget 2023 Consultation event at the Ministry of Finance here, today.

According to him, Malaysia's inflation rate would have reached 11.4 per cent if it was not for the government's move to subsidise essential items, adding that the inflation rate remains within control due to the implementation of price control measures and the granting of subsidies.

"The national inflation rate in the first six months of 2022 stood at 2.5 per cent, which is much lower than inflation in other countries, especially when compared to developed countries such as the United States and the United Kingdom which reached nine per cent, as well as regional countries such as Thailand, the Philippines and Singapore which reached over six per cent," he said.