THE rising cost of living and the financial burdens Malaysians face were among issues raised by Pakatan Harapan in the run-up to the last general election. 

And just days after assuming the prime minister’s post, Anwar Ibrahim, who also took the finance portfolio, chaired the 2022 National Action Council on Cost of Living Special Meeting – attended by government departments and agencies – to discuss the cost of living issues affecting the people.

He gave a two-week time frame to government agencies to look into strategies for addressing rising living costs. 

The Malaysian Insight looks at how successful Anwar has been in addressing price rise and cost of living issues in his 100 days in office.

Below are data obtained from the Domestic Trade and Cost of Living Ministry and Federal Agricultural Marketing Authority (Fama), comparing starting prices of chicken, eggs and some vegetables. Prices are based in the peninsula. 

Chicken and eggs

According to ministry data on October 12 last year, wholesale live chicken was priced at RM6.40 per kg and Fama’s daily price guide showed the starting price remained the same on Thursday. 

The starting price of standard processed chicken on October 12 at wholesale was RM8.10 per kg, while it was priced at RM9.40 per kg at retail. 

Checks with Fama on Thursday revealed the wholesale price for standard processed chicken starts at RM7.60 per kg, while retail price remained the same.  

As for super chicken, its retail price at RM10.40 per kg on October 12, while the starting price was at a reduced rate of RM10 per kg on Thursday.  

As for prices of chicken eggs in October last year, the wholesale price for Grade A was at RM0.42/egg; Grade B at RM0.40/egg and RM0.38/egg for Grade C.  

In retail, the starting price for eggs was RM0.45/egg (Grade A), RM0.43/egg (Grade B) and RM0.41/egg (Grade C).  

Latest Fama data showed that the wholesale and retail starting price for all three grades of chicken eggs remained unchanged. 

In a nutshell, there has been no drastic reduction in prices of chicken and eggs, but this is largely attributed to the fact these prices are government- controlled. 

However, with the government planning to lift the price control for chicken and eggs in June, the prices would then be determined by the market. 

Vegetables

On vegetable prices, the Consumer Association of Penang (CAP) last month said the prices of several vegetables skyrocketed by more than 160% in January. 

According to CAP, the price of lady’s finger had gone up by 166% from RM6 per kg in January to RM16 per kg last month.  

Similarly, it said the price of long beans doubled from RM6 to RM12 per kg, and tomatoes from RM4.50 per kg to RM10 per kg.  

The ministry in Penang did not deny the rise in prices but said the situation was still stable.  

Latest check with Fama showed the wholesale prices of lady’s finger in Penang was at RM5.50/kg, tomatoes at RM7/kg and long beans at RM3.30/kg. 

In retail, the prices of these items seemed to remain high with lady’s finger priced at RM12/kg, tomatoes at RM10/kg and long beans at RM8.50/kg.  

Overall, Fama’s daily price guide for March 2, shows that the wholesale prices for lady’s finger starts from RM5.50/kg, tomatoes at RM4.50/kg and long beans at RM2.75/kg. 

Meanwhile, the starting retail prices for lady’s finger based on the same date is RM7.50/kg, tomatoes at RM7/kg and long beans at RM5/kg.  

In the 100 days of Anwar’s administration, vegetable prices have not come down. In fact, they have increased.

Farmers however attributed this to abnormal weather patterns and a lack of workers.

Cooking oil

Under the tenure of Ismail Sabri Yaakob’s administration previously, subsidies were removed for bottled cooking oils, as a measure to help people during the Covid-19 pandemic. 

As a result, prices of cooking oil soared to nearly 40% as subsidies ended as a bottle of 5kg cooking oil was priced around RM43.

The rising cost of living also affected varsity students, who took to the streets in protest. 

To curb the problem, the then government formed the Special Task Force on Jihad Against Inflation to keep inflation and food prices low, which then decided that they will be adopting a monthly pricing mechanism for bottled cooking oil, 

The unity government is following the current monthly cooking oil price method.  

Recent data from the ministry showed that the ceiling price for 5kg bottled cooking oil will be RM30.90, RM19.60 (3kg), RM13.30 (2kg) and RM6.90 (1kg).  

This price will be from February 8 until March 7. 

Menu Rahmah and budget

With a high cost of living, a positively lowering unemployment rate, inflation that is slowly easing and national debts surpassing RM1.5 trillion, Anwar’s government introduced Menu Rahmah – a ministry initiative – where outlets were offering food for as low as RM5. 

The introduction of Menu Rahmah enables low-income earners to include all the major food components in their daily menu as recommended by the Health Ministry.  

Following the launch of Menu Rahmah on January 31, more than 15,000 restaurants have joined to offer the RM5 meal, with the number of premises still growing.  

The government was also in talks with popular fast-food chains Kentucky Fried Chicken and McDonald’s to offer meals at RM5.  

Higher Education Minister Mohamed Khaled Nordin said the ministry was looking to extend the B40-friendly Menu Rahmah to universities soon.  

Under the current government, Malaysia’s inflation in January eased to 3.7% against 3.8% in December last year. 

Despite the country’s increasing debts, Anwar also went on to retable Budget 2023 with the largest federal allocation till date, totalling RM388.1 billion, which offered several incentives for the B40 and M40 groups.  

Of that amount, the Tambun lawmaker said the government will provide up to RM64 billion in the form of subsidies, assistance as well as incentives, with most of the funds being used to minimise the cost of living through good price control, financial assistance, and giving service to the people.  

Anwar also said the B40 groups would be eligible to get up to a maximum assistance of RM3,100 from Rahmah Financial Aid, helping to reduce the cost of living of almost nine million recipients with an allocation of almost RM8 billion.  

He also said youths aged between 18 and 20 also will be given between RM200 and RM400 through e-Wallet credit under the Belia Rahmah e-Tunai initiative. – March 4, 2023.