24/07/2025

THURSDAY | JULY 24, 2025

3 Economists laud RM100 aid as timely respite for households

‘Govt to closely monitor food prices’

Ű BY KIRTINEE RAMESH newsdesk@thesundaily.com

PETALING JAYA: Deputy Finance Minister Lim Hui Ying has assured that the government is closely monitoring the prices of essential goods particularly food items to ensure the cost of living remains stable following the implementation of the expanded Sales and Service Tax (SST) this month. “Food inflation stood at 2.1% in June and averaged 2.4% for the January to June 2025 period, higher than the national inflation rate of 1.1%,” she told the Dewan Rakyat yesterday. Lim stressed that the SST expansion is a targeted measure and not intended to drive up the prices of basic necessities. “The Domestic Trade and Cost of Living Ministry will continue on-site price monitoring to ensure prices remain under control. The government is determined to keep basic goods affordable and prevent price surges.” She added that the ministry will maintain ongoing price surveillance to ensure the overall cost of living remains manageable for the rakyat. Lim was replying to a supplementary question from Datuk Seri Hamzah Zainuddin (PN-Larut) who asked about the government’s efforts to reduce the food inflation rate, including the SST expansion’s impact on food price controls. Fake ads of public figures spark alarm PETALING JAYA: A total of 121 scam advertisements using images of high-profile Malaysians have been reported to date, said Communications Deputy Minister Teo Nie Ching yesterday. She told the Dewan Rakyat that the Malaysian Communications and Multimedia Commission has lodged official complaints with Meta regarding the fraudulent ads. She expressed concern that such scams continue to surface on the platform and noted that misleading advertisements using her image are still appearing on Facebook despite repeated reports, raising concerns about the role of platform operators, which appear to be acting as accomplices to such fraudulent activities. “Lately, there have been many fake ads on Facebook. Although MCMC has issued notices classifying them as scams, Meta continues to allow the second, third, fourth and subsequent ads to be published.” – By Kirtinee Ramesh

Ű BY IKHWAN ZULKAFLEE newsdesk@thesundaily.com

Besides the cash handout, Anwar said the government would defer toll hikes scheduled this year across 10 highways. The allocation for the Jualan Rahmah Madani programme will also be doubled – from RM300 million to RM600 million. Anwar added that the government will introduce targeted subsidies for RON95 petrol, with the fuel set to be priced at RM1.99 per litre for Malaysians by the end of September. He also declared that Sept 15 (this year) will be a public holiday in celebration of Malaysia Day. – By Ikhwan Zulkaflee spending and dampens inflationary spillover. But ultimately, the government needs a more sustainable model for infrastructure financing.” On fuel subsidies, he said the government is on the right track. “We welcome this, but the government should also explore targeted options, with added support for the M40 through tax breaks or tailored cash aid.” Economist Professor Geoffrey Williams described the cash handout a “smart and meaningful” initiative that could serve as a test bed for a Universal Basic Income (UBI) framework. “This is an unconditional, automatic cash transfer – no applications, no eligibility hurdles. That’s the DNA of a UBI. “If scaled up, it could evolve into monthly payments and pave the way for reforming the STR (Sumbangan Tunai Rahmah) and SARA (Sumbangan Asas Rahmah) schemes.” Williams suggested Malaysia could even lead globally in rolling out a nationwide UBI model. “If developed properly, it could be a bold signature of Anwar’s social policy legacy.” He added that the move is financially viable, especially with savings from the ongoing subsidy rationalisation drive and would generate a ripple effect in local economies. “For the B40 and lower M40 groups, RM100 is significant. Most of it will be spent in neighbourhood shops and stalls – directly stimulating grassroots demand. It can help lift consumer spending in the second half of the year.” Williams acknowledged the public’s scepticism, but urged Malaysians to view the move on its merits. “This is a solid step forward. The government deserves credit for it.” The RM100 cash aid, set to be disbursed via MyKad from Aug 31, is expected to benefit over 22 million Malaysians. It complements existing food subsidies, fuel support and frozen toll rates under the government’s multi-pronged strategy to ease living costs.

o Handout seen as effective short-term stimulus to spur public spending, ease daily expenses and inflation pressures

PETALING JAYA: Prime Minister Datuk Seri Anwar Ibrahim’s latest cost-of-living relief plan is drawing praise from economists, who say the RM100 one-off cash handout – expected to inject RM2.2 billion directly into the domestic economy – could provide an immediate boost in spending and ease the burden on struggling households. Dr Mohamad Idham Md Razak, senior lecturer at Universiti Teknologi Mara (UiTM) Puncak Alam, said the cash aid, which will be given to all Malaysians aged 18 and above, could act as a short-term economic stimulus, particularly for youths and low-income groups. “With three adults in a household, that’s RM300. It’s a

million boost for the Jualan Rahmah programme as one of the most strategic moves. “By offering essential goods at discounted prices, this directly lowers household spending and helps cushion inflation.” Mohamad Idham also welcomed the toll hike postponement involving 10 highways, saying it would ease the burden on daily commuters and small business operators. “This brings real relief, especially for those travelling long distances for work. It helps preserve consumer

quick injection that could lift spending on retail, food and essentials and support small traders. “But without follow-up measures such as job creation or sustainable financial aid, the effect may not last,” he told theSun. He said Anwar’s broader cost-of living package – including fuel subsidy adjustments, expanded food assistance and a freeze on toll hikes – signals the government’s effort to tackle inflation and shield household income on several fronts. He highlighted the RM600

The price of RON95 petrol is set to drop to RM1.99 per litre under a targeted subsidy scheme to be rolled out by end-September. - AMIRUL SYAFIQ /THESUN

Cash payout, cheaper petrol offer relief amid rising costs PETALING JAYA: The announcement by the prime minister yesterday received widespread public approval, with many hailing it as timely relief amid ongoing economic pressures. Human Resources executive Afaf Radzuan, 35, said the cash handout for all adults is bound to strike a chord with the people. the Jualan Rahmah initiative would help Malaysians cope with rising prices of basic goods. “The freeze on toll hikes also helps ease financial pressure, especially for those of us who travel long distances for work.” Aminurrashid Idris, 37, an not go up.” Part-time worker Nur Shahiera Hisham Mudin, 24, said the RM100 aid was meaningful, especially for young families. would go a long way for struggling families. “Thanks to PMX (Datuk Seri Anwar Ibrahim) for the RM100 assistance – it’ll help many buy basic necessities. It’s not enough to cover a whole month, of course, but it’s a welcome help for those who truly need it.”

“The announcement meant a lot to me. Between my husband, my younger sibling and I, we’ll receive RM300. It may not seem much to others, but for us, it makes a real difference.” She said the money would go towards household essentials and items for her eldest child, who is nearly two. Radiographer Abdullah Zawawi Fikri Rozlan, 38, from Terengganu, said the cash handout may be small but

More than 20 million Malaysians will get the RM100 cash handout in conjunction with Merdeka Day. All citizens aged 18 and above will receive the aid via their MyKad, under the SARA programme. The assistance can be used from Aug 31 to Dec 31 this year at over 4,000 participating stores, including major supermarket chains.

executive based in Shah Alam, was thrilled about the extra public holiday. “It’s another long weekend for Malaysians. It gives us more time to be with our families.” He also welcomed the freeze on toll rates, noting it would benefit the many who commute daily between states for work. “At least that is one cost which will

“It’s definitely a popular move. It’s not just targeted at specific groups – everyone aged 18 and above will benefit. “Families with many adults are especially lucky. Even though it’s just a one-off, it can go a long way in helping with daily essentials.” Afaf added that the expansion of