MCA has cast doubts on Putrajaya’s recent announcement that Malaysia’s Consumer Price Index (CPI) for March remained at 1.8%, saying the figures cited are questionable and cast doubts about its accuracy in reflecting the real situation on the ground.

Wanita MCA national chairperson Wong You Fong said the people are currently confronted with financial pressures and increasing cost of living burdens, and that the hardships on the ground contradict the somewhat almost identical inflation levels portrayed by official data.

“The subtle gap between perception and reality in economics is an understatement. Despite official data showing a very mild 1.8% inflation in the CPI, the public’s first-hand encounters reveal that the cost of living has far exceeded this range over the past two years,” she said in a statement on Friday (April 26).

“Therefore, the government’s ability to accurately and fully grasp changes in people’s living costs and purchasing power often raises scepticism.”

Wong noted that experts had pointed out that the public’s perception of inflation might be biased, especially during periods of escalating inflationary pressures.

She said speculations over future inflations are one of the main factors driving inflation, as views on consumption and investment affect current prices and wages.

“Therefore, the government should value public perceptions and adopt multi-faceted strategies to narrow the gap between perceived inflation and actual inflation,” Wong reckoned.

“It is incumbent on the government to take concrete measures to bridge the perception gap between the real cost of living and overly subdued CPI inflation reported by official sources.”

According to Wong, one of the root causes for soaring prices in Malaysia is the government’s “long-standing failure” to tackle the problem of excessive dependence on food import.

She said if the Malaysian ringgit continues to depreciate, it will directly lead to prices of food imports ascending further.

“To fundamentally resolve the problem of steep prices in Malaysia, Wanita MCA urges the government to quickly take measures to increase the country’s food production, enhance food security to lessen our disproportionate reliance on imported food,” she stated.

“By expanding food production, domestic supply can be increased in tandem to meet market demand and stabilise price levels.

“When food supply is sufficient, market competition grows, and prices should level down, thereby easing the economic yoke stressing people.” - April 26, 2024 

https://focusmalaysia.my/mca-govt-needs-to-address-reliance-on-food-imports/