Guan Eng: Dissolve ‘incompetent’ task force on jihad against inflation

Prime Minister Ismail Sabri Yaakob should dissolve the special task force on jihad against inflation for failing to curb rising prices, said former finance minister Lim Guan Eng.

He described the task force, headed by Communications and Multimedia Minister Annuar Musa, as “ineffective, incompetent, and irrelevant.”

The DAP chairperson launched the scathing salvo following Bank Negara Malaysia’s (BNM) decision to raise its overnight policy rate (OPR) for the third time in a row this year, principally to stem inflation.

“Hiking the OPR is no different from comprehensively repudiating Annuar’s claims that inflation and soaring food prices are slowly under control as baseless and mere political sloganeering.

“BNM has indirectly dismissed Annuar’s anti-inflation efforts as of no consequence, with the consumer price index rising by 4.4 percent in July compared to 3.4 percent in June 2022, the month that Annuar was first appointed as chairperson (of the task force). 

“Since BNM is now relying on the monetary tool of raising the interest rate to fight inflation, there is no need or necessity to retain a ‘Jihad on Inflation’ task force,” he added in a statement this morning.

According to Lim, such a task force would have a role to play if it is chaired by the prime minister himself.

On June 29, Ismail Sabri announced the formation of the task force, whose main task was to gather information from ministries, agencies and the public, and to formulate strategies and coordinate actions to resolve issues relating to inflation, especially in controlling price hikes more efficiently and effectively.

The task force comprises Finance Minister Tengku Zafrul Abdul Aziz, Agriculture and Food Industries Minister Ronald Kiandee, Domestic Trade and Consumer Affairs Minister Alexander Nanta Linggi, Minister in the Prime Minister’s Department (Economy) Mustapa Mohamed, and Chief Secretary to the Government Mohd Zuki Ali.

Yesterday, BNM announced that it has increased the OPR by 25 basis points to 2.50 percent.

The central bank said the ceiling and floor rates of the corridor of the OPR are correspondingly increased to 2.75 percent and 2.25 percent respectively.

It noted that inflationary pressures have remained high due to elevated commodity prices and tight labour markets despite continued easing in global supply chain conditions.

Consequently, it said central banks are expected to continue adjusting their monetary policy settings, some at a faster pace, to reduce inflationary pressure.

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