straitstimes.com | KUALA LUMPUR – Prime Minister Anwar Ibrahim has crossed the halfway mark of his first term as Malaysia’s top leader, and amid marginal gains in approval ratings, he is still up against a minefield of political and economic challenges.
From the looks of it, the Anwar administration’s sputtering attempts to implement tax hikes and subsidy cuts perhaps encapsulate the hesitation to put its foot down on steps deemed necessary for long-term fiscal health, as well as moves that could be seen as not only detrimental to those at the bottom of the economic ladder but also politically risky.
Though Malaysia’s inflation is at its lowest level in over four years, the cost of living is widely seen as continuing to climb – with the expanded sales and service tax (SST) taking effect from July 1, a hike in electricity tariffs for the industrial sector in that same month, and the government going ahead to reduce subsidies for the widely used RON95 petrol by the end of 2025.
The government is also considering whether to stop commercial eateries from using subsidised cooking gas, a scheme that would jack up the cost of eating out.
Though some of the measures have yet to be implemented, these issues have added to widespread views that prices of goods and services are all heading north.
“We used to eat out almost every day, but now we have cut it down to just two meals outside on weekends,” said teacher S. Lee, 43. Her family of four used to spend around RM80 (S$24) for a meal at a casual cafe, but now that same meal could easily cost RM120, especially for Western dishes like pasta.