KUALA LUMPUR, Feb 22 — Malaysia is not experiencing an economic crisis although the country is facing spiraling costs, says Treasury Secretary-General Tan Sri Dr Mohd Irwan Serigar Abdullah.

He said the country's economic fundamentals were still intact and this was evident from last year's Gross Domestic Product growth of 4.7 per cent.

Mohd Irwan said the government had taken precautionary measures to ensure the people were not impacted by the escalating cost of raw materials and food.

“I would like to reiterate that the country is not experiencing an economic crisis,” he told Bernama last night after appearing on Bernama TV's hour-long Ruang Bicara' programme. 

Some of the measures taken by the government to help the people tide over spiraling costs include the payment of the 1Malaysia People's Aid (BR1M) and the 1Malaysia Peoples' Housing Programme.

Mohd Irwan also said the government always had the peoples' interest at heart especially the middle and low-income groups besides monitoring the country's economic growth.

On the country's inflation rate of 3.4 per cent, Mohd Irwan said this was the result of a short supply of goods including food items.

He said supply chain constraints were caused by the weather and the involvement of middlemen who were taking advantage of the situation to make exorbitant profits.

Mohd Irwan also said the implementation of subsidy rationalisation programme was inevitable.

“We cannot go on absorbing subsidies as it is an element that is profiting those who should not be receiving them,” Mohd Irwan said. — Bernama