Minister: New index to reflect ‘real’ cost of living

Saifuddin said the current Consumer Price Index (CPI) was not reflective of the real cost of living, especially for the price of goods. — Picture by Miera Zulyana
Saifuddin said the current Consumer Price Index (CPI) was not reflective of the real cost of living, especially for the price of goods. — Picture by Miera Zulyana

KUALA LUMPUR, March 5 — The Domestic Trade and Consumer Affairs Ministry is confident that a new cost of living index can reduce the people’s cost of living, especially in the context of the price of goods.

Its minister Datuk Seri Saifuddin Nasution Ismail said the current Consumer Price Index (CPI) was not reflective of the real cost of living, especially for the price of goods.

He said the new index would guarantee and identify more accurately readings on price of goods and cost of living.

“All these while, we (the government) have relied on the CPI or inflation index. For example, the CPI or inflation index can be very low, but then it might not be felt by the people in real life.

“So, we (the government) feel that the new index is a necessity to be made the new guideline that will paint a true picture of what is happening,” he told reporters after officiating the 2018 Excellent Service Award here today.

Saifuddin said among the agencies involved in implementing the index were the Department of Statistics Malaysia (DoSM), Khazanah Research Institute (KRI) and Malaysian Competition Commission (MyCC).

Yesterday, Finance Minister Lim Guan Eng said the government would propose a cost of living measurement index to better determine pay rise.

Lim was reported to have said that the current method of measuring the CPI was insufficient to determine the real pay rise needed by the people.

Earlier, Saifuddin presented certificates and prizes to 108 employees of three agencies under the ministry, of which 67 were from the Companies Commission of Malaysia (SSM), 36 from Intellectual Property Corporation of Malaysia (MyIPO) and five from MyCC. — Bernama