This article first appeared in The Edge Financial Daily on October 26, 2017

KUALA LUMPUR: The Malaysian government says the cost of living has risen on factors including the foreign exchange rate for the ringgit and costlier crude oil. As such, the goods and services tax (GST) is not the sole reason for higher prices in the country.

Deputy Finance Minister Datuk Othman Aziz said this in parliament yesterday in response to Seremban member of parliament Anthony Loke Siew Fook’s question.

Earlier, Loke had asked the government about the country’s higher cost of living in relation to the 6% GST, implemented on April 1, 2015.

“We cannot make a conclusion that prices increased after the GST’s implementation, as increasing prices also involves other components such as foreign exchange, transportation cost or crude oil prices, and higher cost in distribution and marketing channel,” Othman said.

“We at KPDNKK (domestic trade, cooperatives and consumerism ministry) [have] been monitoring the increase in prices, and found that despite the increase in prices, the Barisan Nasional government has been compensating the rakyat with direct and indirect financial aids such as BR1M (1Malaysia People’s Aid) and aids for farmers and fishermen. These efforts were meant to counter the effects of price increases.”

BR1M started in 2012 as part of the government’s efforts to assist low-income earners in Malaysia.