ID :
17460
Sat, 08/30/2008 - 10:47
Auther :
Shortlink :
https://oananews.org//node/17460
The shortlink copeid
M'SIA WILL CONTINUE TO MAP OUT MEASURES TO EASE PEOPLE'S BURDEN
KUALA LUMPUR, Aug 29 (Bernama) -- Malaysia will continue to undertake
measures to ease the burden of rising prices on the poor and vulnerable groups, riding out the current challenges of rising inflation and slower growth although the Consumer Price Index (CPI) surged to a 26-year high of 8.5 percent in July due to higher food and fuel prices, the Ministry of Finance (MOF) said.
To this end, promoting growth with price stability will be the major thrust
of monetary policy, it said in its Economic Report 2008/2009 released here
Friday.
The report said that pragmatic management of the economy has enabled
Malaysia to continue enjoying growth with relatively stable and low inflation
despite sharp increases in some years largely due to the external factors.
In addition, other measures taken to address inflationary pressures
included
increasing food production, establishing rice stockpile, improving food
distribution, price control of essential food items, subsidy on essential items
and strict enforcement to deter indiscriminate price increases.
The government also established a Special Cabinet Committe on
Anti-Inflation
in April 2008 to propose measures to ease the burden of the poor and vulnerable
groups in coping with rising costs of food and energy.
The committee has since been replaced by the Economic Council in August,
which acts as an advisory body to recommend measures to sustain economic growth,
in light of the global economic slowdown as well as to identify approaches to
contain inflationary pressures.
The report noted that global food energy prices escalated further in 2008,
causing inflation to accelerate worldwide while crude oil prices hit new highs
several times this year and reached a record US$145 per barrel in early July.
Domestic inflation rose 3.8 percent in May and surged to a 26-year high at
7.7 percent in June, following higher food prices and the hike in petrol prices,
which together contributed 6.7 percentage points to the increase in the CPI.
Inflation rose further to 8.5 percent in July, however, the overnight
policy
rate was left unchanged at 3.50 percent in July, as the risks to slower growth
have increased considerably relative to the risks to higher inflation.
"In view of these developments, the immediate concern is to avoid an
economic slowdown, which would lead to unemployment and cause hardship
especially to the poor and the vulnerable groups," it said.
The moderation in global and domestic growth in the second half of 2008 and
into the first half of 2009 is expected to reduce the pressures on prices.
On a positive note, global prices of commodities have started to ease, as
reflected by Standard & Poor's Goldman Sachs Commodity Index declining 12
percent to 760.2 points as at end-July from 862.7 points as at end-June 2008.
Crude oil prices have also dipped below US$120 per barrel in early
August.
The MOF said that the government will continue to closely monitor domestic
and external developments and adopt an appropriate policy response based on the
assessment of the risks to growth and extent of generalised price increases.
--BERNAMA
measures to ease the burden of rising prices on the poor and vulnerable groups, riding out the current challenges of rising inflation and slower growth although the Consumer Price Index (CPI) surged to a 26-year high of 8.5 percent in July due to higher food and fuel prices, the Ministry of Finance (MOF) said.
To this end, promoting growth with price stability will be the major thrust
of monetary policy, it said in its Economic Report 2008/2009 released here
Friday.
The report said that pragmatic management of the economy has enabled
Malaysia to continue enjoying growth with relatively stable and low inflation
despite sharp increases in some years largely due to the external factors.
In addition, other measures taken to address inflationary pressures
included
increasing food production, establishing rice stockpile, improving food
distribution, price control of essential food items, subsidy on essential items
and strict enforcement to deter indiscriminate price increases.
The government also established a Special Cabinet Committe on
Anti-Inflation
in April 2008 to propose measures to ease the burden of the poor and vulnerable
groups in coping with rising costs of food and energy.
The committee has since been replaced by the Economic Council in August,
which acts as an advisory body to recommend measures to sustain economic growth,
in light of the global economic slowdown as well as to identify approaches to
contain inflationary pressures.
The report noted that global food energy prices escalated further in 2008,
causing inflation to accelerate worldwide while crude oil prices hit new highs
several times this year and reached a record US$145 per barrel in early July.
Domestic inflation rose 3.8 percent in May and surged to a 26-year high at
7.7 percent in June, following higher food prices and the hike in petrol prices,
which together contributed 6.7 percentage points to the increase in the CPI.
Inflation rose further to 8.5 percent in July, however, the overnight
policy
rate was left unchanged at 3.50 percent in July, as the risks to slower growth
have increased considerably relative to the risks to higher inflation.
"In view of these developments, the immediate concern is to avoid an
economic slowdown, which would lead to unemployment and cause hardship
especially to the poor and the vulnerable groups," it said.
The moderation in global and domestic growth in the second half of 2008 and
into the first half of 2009 is expected to reduce the pressures on prices.
On a positive note, global prices of commodities have started to ease, as
reflected by Standard & Poor's Goldman Sachs Commodity Index declining 12
percent to 760.2 points as at end-July from 862.7 points as at end-June 2008.
Crude oil prices have also dipped below US$120 per barrel in early
August.
The MOF said that the government will continue to closely monitor domestic
and external developments and adopt an appropriate policy response based on the
assessment of the risks to growth and extent of generalised price increases.
--BERNAMA
