JOHOR BAHRU, April 23 — The government is focusing on safeguarding Malaysia’s supply chain to mitigate the impact of rising inflation, Economy Minister Akmal Nasrullah Mohd Nasir said today.
The measures follow an increase in the inflation rate to 1.7 per cent in March, up from 1.4 per cent in February.
Akmal identified the transport sector as the biggest contributor to the hike, linking it to rising fuel costs driven by the ongoing conflict in West Asia.
However, he described the increase as “minor,” stressing that the government is attempting to balance its fiscal objectives with controlling the impact on daily spending.
“So far, we have focused on managing the geopolitical impact in terms of the supply chain issues to ensure that the economic sector can operate unhindered,” he told reporters after officiating an Insolvency Department programme here today.
Akmal explained that the core issue lies at the supply chain level and the availability of inputs for Malaysia’s product value chain.
He cited the plantation industry’s reliance on fertiliser and the construction sector’s need for raw materials as key examples.
“If this shortage of supply occurs, then it has implications in terms of productivity,” he said, adding that there was a need to ensure economic activities could continue with balanced pricing.