PM: Govt will continue to monitor inflation after civil servants' wage hike

The Madani government will continue to monitor the rate and impact of inflation in the country following the announcement of an increase in civil servants’ salaries of over 13 percent this December.

Prime Minister Anwar Ibrahim said the government will surveil the implementation of the salary increase while ensuring that the government's revenue is exceeded, through closer monitoring.

“That is why the increase (inflation) is phased in December and will follow through to the following year (2025).

“So, if it goes up (inflation), it will be under control because, as we know, inflation in our country is the lowest in Asia,” he said during the “Soal Jawab Perdana Menteri” programme broadcast by all local television stations today.

Anwar also reassured that the government will always strive to ensure the inflation rate will not burden the people.

He said this when asked about the rising inflation concern following the announcement of a salary increase for civil servants.

Anwar, during the national Labour Day 2024 celebrations this morning, announced the salary increase for civil servants, which is expected to involve an allocation of more than RM10 billion.

Cost of living under control

According to Bank Negara Malaysia, overall inflation is expected to remain moderate, between 2 percent and 3.5 percent this year, following cost pressures that are under control following improved global supply conditions.

Touching on the cost of living, the prime minister denied grouses that the cost of living is now the highest in history.

“That is a lie. I used to oversee price controls for goods many decades ago as the finance minister. Indeed, we assume that every year before Hari Raya the price of chicken will go up, but this time it did not.

“We also monitor the price of vegetables and fish. Some go up, I am not denying it, but we are monitoring," he said, adding that the cost of living in Malaysia is still well controlled compared with Singapore, Thailand, Indonesia and the Philippines.

The almost hour-long special interview with the 10th prime minister of Malaysia was conducted by RTM presenter Sayed Munawar Sayed Mustar, Pasha Abdul Rahim (Bernama TV), Muhammad Zulfitri Yusof (Awani) and Azaria Tagaya (TV3).

- Bernama

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