The government will set up a special cabinet committee to address the rising of living, said Deputy Prime Minister Tan Sri Muhyiddin Yassin.

Muhyiddin said the committee which he will chair, will act as a central committee in handling the increase in cost of living and prices of goods in an integrated manner.

“The Ministry of Domestic Trade and Consumers Affairs will act as the secretariat and ministry leaders. Other ministries will be appointed as members of the special committee,” said Muhyiddin during a press conference held at the Putra Perdana building in Putrajaya.

He added that the committee is also an extension of the Cost of Living National Key Result Area’s (NKRA) scope and role.

“The special committee’s role includes coordinating the implementation of policies and programs of various ministries and agencies involved in reducing the burden of the people,” said Muhyiddin.

Muhyiddin also explained that the committee will work together with the Physical Policy Committee chaired by Prime Minister Datuk Seri Najib Tun Razak in reviewing the government tax policy and subsidy rationalisation.

“It also implements a sectoral study on the actual impact of rising input costs of essential goods which will in turn make reasonable projection increase,” he added.

The government will also establish a Special Lab beginning Jan 15 for two weeks to study measures on ways to reduce the people’s burden.

Apart from that, the government will also review the Competition Act 2010 under the Malaysian Competition Commission, MyCC in order to strengthen its implementation.

In the meantime, the minister reminded traders not to use the implementation of Goods and Services Tax (GST) which is to be introduced in April 2015, as an excuse to raise prices unreasonably.

"GST will not be enforced until 2015. Some groups use this as an excuse to increase the prices of goods. So we want to examine whether there are other parties responsible.

"I ask to be fair. Example, if sugar rose by 34 sen per kg, don’t increase the price of drink over 30 sen,” said Muhyiddin.