The recent fuel subsidy cut announced by the Malaysian Government will have little impact on high cost of living and intense business environment ensued from the anticipated inflation.
According to official forecasts, the increase in fuel prices
could boost full-year inflation for 2013 by 0.3%, and food prices by 0.1%.
However, Malaysians are not convinced as they worry that
more expensive petrol and diesel will mean having to pay more for goods and
services.
Malaysia raised fuel prices for the first time since 2010,
joining neighboring Indonesia in curbing subsidies that have stretched
government budgets and threatened investor confidence.
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