Malaysia’s inflation is expected to rise significantly in 2025, with experts predicting a jump to 2.7%.
Major changes such as the RON95 fuel subsidy reform, minimum wage hike, and wider scope of service tax are expected to drive this increase.
According to Hong Leong Investment Bank (HLIB), while inflation remains low for now, price pressures are expected to increase next year.
Added to this, the real game-changer could be the targeted RON95 subsidy reform and the minimum wage hike to RM1,700, which could lead to higher inflation.
While some argue that these reforms are necessary for long-term economic stability, others are already questioning whether these policy changes will make life more expensive for Malaysians.
Will the government’s plans bring about controlled inflation or lead to a bigger cost of living crisis?
In the short term, inflation has edged up to 1.9% YoY in October, with food and beverage costs playing a major role.
The extent to which the people will feel pressure in 2025 will certainly spark heated discussions on the lips of people across the country.
