Budget 2025 to focus on inflation control, cost of living solutions, says Anwar

PORT DICKSON: The government will prioritise strategies to stabilise inflation and address the rising cost of living in Budget 2025, says Datuk Seri Anwar Ibrahim.

The Prime Minister said that under the Madani government, the inflation rate is holding steady at 2%, with Gross Domestic Product (GDP) growth for the second quarter of this year at 5.9%.

ALSO READ: How green will Malaysia’s Budget 2025 be?

“I just returned from Vladivostok, Russia (where) I met President Vladimir Putin. Questions were raised about our inflation rate, which is at 2%, while some food sectors see inflation at 3% to 3.5%. Even that has been a challenge to manage.

“My focus and strategy for the Budget (presentation) in October is to find solutions to the cost of living issues… Although, compared to neighbouring countries like Thailand, Indonesia and Singapore, our inflation is relatively low,” he said.

ALSO READ: Govt should accelerate plan to increase healthcare allocation from Budget 2025, says MMA

He said this in his speech when officiating the national-level 2024 “Bulan Malaysia Sihat Sejahtera” month celebration, also attended by Negri Sembilan Mentri Besar Datuk Seri Aminuddin Harun and Health Minister Datuk Seri Dr Dzulkefly Ahmad here Sunday (Sept 8).

In this regard, Anwar said the government is committed to prudent economic management, ensuring there is no wasteful spending in various sectors.

ALSO READ: MoF sets three short-term priorities for Budget 2025

Based on the Statistics Department’s Consumer Price Index (CPI) report for July this year, Malaysia’s inflation rate has remained at 2.0% since May.

The department said the inflation rate was driven by price increases in key categories, including restaurants and accommodation services (3.4%); personal care, social protection and miscellaneous goods and services (3.2%); recreation, sports, and culture (2.2%); and health care (1.9%). – BK