The Prime Minister said the indicators or the index were calculated based on the various household expenses, which are generally not included in the KSH indicator in most other countries.
"The current situation demands a change because what is required in Kuala Lumpur may not necessarily be required in Hulu Terengganu, (Terengganu). Therefore the index should be modified and this is being done based on the results of the meeting that set the cost of living in line with current developments.
"We also take into account neutral consumption, such as the Malaysian diet, including food, non-alcoholic beverages, clothing and footwear, housing, water, electricity, gas, decoration, health, transport, information and communication, recreation, sports and education services, which are the general aspects not included in the cost of living in most countries," he said in reply to Datuk Rosol Wahid during the Minister's Question Time.
Rosol had wanted to know the latest development of the new indicators and the programme implemented by the government based on the findings of the indicators.
Elaborating, Anwar said the calculation of the indicators involved households in all 13 states, three federal territories and 162 administrative districts and the report from the calculation would also include the marginal propensity to consume (MPC) and purchasing power parity (PPP).
On the programmes implemented based on the KSH indicators, the Prime Minister said it includes increasing the amount of subsidies for the people and the implementation of the targeted diesel subsidy.
"Yes, there may be a problem in the implementation of the programmes that we need to deal with, but let's not forget that there used to be a lot of leakages...we cannot deny that foreigners, including foreign fishermen, have been benefitting from the leakage in the diesel subsidy too.
"That's why when we have effective enforcement, we can save (our money) and return it to the people," he said.
-- BERNAMA
