KUALA LUMPUR, Oct 30 — Malaysia’s inflation rate fell to 1.8 per cent last month from 1.9 per cent in August 2026, indicating that overall price pressures remained under control.
Economy Minister Akmal Nasrullah Mohd Nasir said the government was nevertheless keeping a close watch on developments amid rising global fuel prices and production cost pressures, BuletinTV3 reported.
He said global crude oil prices had surged to US$116.80 (RM472.75) per barrel from US$90.90 in August, while Malaysia’s Producer Price Index (PPI) also rose to 12 per cent in September 2026 from 10.7 per cent the previous month.
In response, he said the government was taking a comprehensive approach through several key measures, including targeted subsidies to shield the public from the direct impact of higher fuel prices.
“The government is continuing the implementation of Budi Madani RON95 (BUDI95), maintaining the subsidised RON95 price at RM1.99 per litre, as well as Budi Madani Diesel (Budi Diesel) for eligible recipients.
“Since September, the monthly Budi95 quota has been increased to 300 litres, while the Budi Diesel quota for jeep and pick-up truck users has been raised to 400 litres,” he said in a written parliamentary reply published on the Parliament portal today.
He was responding to a question from Datuk Seri Panglima Dr Jeffrey G Kitingan (GRS-Keningau) on the government’s measures to address rising inflation and the impact of higher oil and goods prices following the conflict in West Asia.
Akmal Nasrullah said the government was also maintaining appropriate subsidy and control mechanisms, including the Subsidised Petroleum Control System (SKPS) and Subsidised Diesel Control System (SKDS) for sectors with a direct impact on transportation costs and the prices of goods.
He said these measures were aimed at easing cost pressures on the transport and logistics sectors, while preventing increases in global fuel prices from being passed on abruptly to domestic goods and services.
“Price and supply monitoring and controls for essential goods have also been strengthened, with continuous market price checks conducted through platforms such as PriceCatcher to identify price changes, particularly for items that have a significant impact on people’s cost of living.
“The allocation for the Jualan Rahmah Madani and Jualan Agro Madani programmes has also been increased to RM750 million in 2027, from RM630 million, with a target of 35,000 events.
“These initiatives include expanding Jualan Rahmah Madani to rural areas, low-cost housing areas and People’s Housing Projects (PPR), while Jualan Agro Madani offers fresh agricultural produce at prices up to 30 per cent lower,” he said.
Akmal Nasrullah said assistance for vulnerable groups would also continue through targeted aid such as the Rahmah Cash Contribution (STR) and Rahmah Basic Contribution (SARA), with allocations increased to RM16 billion.
He said SARA could also be used to purchase fresh and wet goods at 216 farmers’ markets or tamu under the Federal Agricultural Marketing Authority (Fama), while the network of small grocery shops participating in the scheme would be expanded.
“Targeted assistance also allows fiscal resources to be channelled to those most in need, rather than through blanket subsidies that also benefit higher-income groups.
“Strengthening the country’s economic resilience against external shocks is another initiative. This includes ensuring food and energy security, strengthening domestic supply chains, increasing productivity and production efficiency, and encouraging diversification of input sources and markets.
“These measures will enable the government to continue protecting the national economy from major impacts arising from supply disruptions or prolonged increases in global commodity prices,” he said.
