PUTRAJAYA (Jan 17): Despite the view that subsidies are inefficient and prices of basic necessities should be determined by market forces, the government has chosen a more realistic approach by providing targeted subsidies to help households cope with cost-of-living pressures. Meanwhile, touching on the inflationary implications of the Sara and STR disbursements, Johan stressed that these measures do not create inflationary pressure. On the contrary, he said, the targeted approach has enabled the government to keep inflation below 2%, demonstrating that subsidy programmes such as Sara do not contribute to widespread price increases. “This goes to show that targeted subsidies not only help those in need, but also promote price stability in the market,” he added. Johan further explained that unlike the approach taken by some other countries whereby prices are raised to market levels and cash assistance is then provided, the Malaysian government adopts a targeted approach to support vulnerable groups.

Source: The Edge Markets January 17, 2026 03:23 UTC