FOOD prices have soared in the past two years – even doubled and tripled in some cases.

The triple threat of the pandemic, economic slowdown and global price hikes are feeding into each other, driving a deeper wedge between the poor and rich in this country.

Yet, after the then debate on Employees Provident Fund (EPF) withdrawals, the tone for aid and relief has softened, despite household economic-related indicators such as the inflation rate rising.

The conflict in Ukraine and harsh sanctions on Russia are expected to drive food prices even higher.

Both countries have high stakes in oil and raw food production – basic commodities that can set off a chain reaction of supply issues, which will impact everything from delivery services to petrol prices.

As it is, Malaysia’s B40 category can no longer afford these things anymore; this is compounded by the delay in reopening borders and reduced employment availability and quality, which in turn prolong income disruption on almost all income groups.

The most optimistic estimates put unemployment at about 5% and inflation at 2.3% – though this number does not reflect the ground reality as both Personal Consumption Expenditure or Consumer Price Index (that Malaysia uses) depend heavily on items calculated in the consumption “basket”.

For example, adding items like clothing and static bills to the “basket” will significantly lower the rate. Comparatively, the United States rates consumer inflation at about 7.5%.

Yet, the national discourse continues to revolve around politics and religion. We are still fixated on long-unresolved issues that need only a little political will, like child conversions and crossing the floor.

We should be talking about the impending impact of worsening global and regional economic conditions.

The government of the day – after Budget 2022’s unveiling of Bantuan Keluarga Malaysia, which is mostly an extension of the previous administration’s Pemulih and Penjana programmes – has not pushed forward any new aid package for the people.

The previous prime minister’s statement that the government may not have enough money to do so is even more ominous, and the state of the country’s economic affairs is more precarious than publicly disclosed.

It can be argued that past aid packages saved the nation from slipping further down a perilous slope, by rescuing a few thousand jobs and allowing the people to continue to feed their families via EPF withdrawals, which at RM 5,000, formed the bulk of “aid” for most families.

Yet, at this juncture and with many pressing factors, it is time for the government to study a third, more comprehensive tranche of fiscal measures to ease the growing consumer burden.

If it is unable to do so directly, then mobilise its entities and government-linked companies, especially those with deep reserves, to offer direct cash aid and stimulate the economy.

EPF can also look at other schemes, after giving out RM100 billion in direct aid that has mostly been spent.

With RM1 trillion in assets and only 70% of contributors having an account balance, the statutory body can redirect a portion of its investments into promoting smaller companies locally and regionally, especially in greenfield areas with high growth and yield potential that matches national aspirations, going beyond mere slogans like STEM training, IoT and IR 4.0.

Telekom Malaysian, Tenaga Nasional Bhd and local banks that have leading expertise should be allowed to grow their presence and encourage the same.

These companies have enough resilience to withstand the pandemic with little help, as they are still performing. This policy can create much needed jobs and optimism in our market, and generate interest in the country as a knowledge hub or centre of excellence in technology.

We should also prepare ourselves for the reopening of business and leisure travel, and take advantage of our higher immunisation rate to gain first-mover advantage for events and the meetings, incentives, conferencing, exhibitions segment.

These and other steps to revitalise the country as a competitive destination, together with more aid for lower-income groups, will be a much better use of our resources instead of recursive debates and circular politics. – March 2, 2022.

* Emmanuel Joseph firmly believes that Klang is the best place on Earth, and that motivated people can do far more good than any leader with motive.

* This is the opinion of the writer or publication and does not necessarily represent the views of The Malaysian Insight. Article may be edited for brevity and clarity.