Fuel subsidies keep lid on transport costs, but Tengku Zafrul warns supply crunch will test households
KUALA LUMPUR, May 1 — The impact of the global supply crisis on the cost of living is expected to begin to be felt by Malaysians within one to two months, said senior political advisor to the Prime Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
He said this was driven by increased costs in the supply chain including logistics, fertiliser and other industrial inputs.
“Based on studies and analyses conducted, this impact will have an effect on the prices of food and daily goods, although the increase may not be very significant at the initial stage,” he told Bernama after a visit to the Taman Muda Market, here today.
Tengku Zafrul said among the sectors expected to be affected first are logistics, followed by agriculture and industries that rely on raw materials such as plastic.
He said the situation was the result of disruptions to the global supply chain which not only put pressure on oil prices, but also involved the cost of production and distribution inputs.
Regarding the outlook for the market, Tengku Zafrul said so far, the impact on raw material prices had not yet been noticeable, but there were early signs such as an increase in the cost of packaging materials such as plastic.
However, he said the situation in the country is still under control due to fuel subsidies which helped curb transportation costs, while reminding the people to be more prudent in their use of energy including fuel.
