Happy with the salary increase in 2025? So will the price of goods!
Malaysia's inflation is expected to rise to 2.3% in 2025, higher than 1.8% in 2024, due to the adjusted RON95 petrol subsidy, higher insurance costs, expanded SST tax, and minimum wage hike.
Despite the increasing heat of inflation, analysts expect prices to remain under control, with the government maintaining price controls especially during Ramadan and Aidilfitri.
Bank Negara Malaysia (BNM) is not expected to raise interest rates unless inflation spikes sharply.
However, for ordinary citizens, the cost of living will continue to rise.
Food and housing prices are expected to rise, although slightly eased due to lower transportation and restaurant costs.
The civil servant salary increase in December 2024 may provide some relief, but will it be enough to offset the price increase?
In an uncertain global economic situation, the question is whether inflation can still be controlled, or should the people prepare for a larger wave of price increases?
