Tengku Zafrul Aziz, Malaysian finance minister

Malaysia’s finance minister has announced plans to spend 77.3 billion ringgit ($17.6 billion) to help relieve the pressure of rising prices, with the package set to include subsidies for fuel, electricity and food.

Prices of goods have risen sharply in Malaysia in recently due to the impact of the war in Ukraine and supply chain disruptions, with the situation exacerbated by labor shortages. Data recently released by the government shows that food prices have risen by 5.2% in the past year.

51 billion ringgit is earmarked for consumer subsidies, finance minister Tengku Zafrul Aziz confirmed in a statement, adding that this figure was based on current market prices. A further 11.7 billion ringgit will be distributed in cash aid, as well as 14.6 billion ringgit in other subsidies.

Malaysia had already pledged almost $400 million earlier this week to help households struggling with rising food and living costs.

Government revenue has spiked from rising commodity prices, but this is unlikely to offset increased spending as Kuala Lumpur seeks to soften the financial impact on households. Earlier this month, the government confirmed it expected to run at a deficit for 2022 due to increased expenditure.

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