KUALA LUMPUR (Oct 25): The Malaysian government says the nation's cost of living has risen on factors including the ringgit's foreign exchange rate 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 today in response to Seremban MP Anthony Loke Siew Fook's question. Earlier, Loke had asked the government on the country's higher cost of living in relation to the 6% GST, which was implemented since April 1, 2015.

Today, Othman said: "We cannot make a conclusion that prices increased after the implementation of GST, as increasing prices also involve other components like foreign exchange, transportation cost or crude oil prices, higher cost in distribution and marketing channel etc."

"Hence, we at KPDNKK (Domestic Trade, Co-operatives and Consumerism Ministry) level [have] been monitoring the increase in prices, and we found out that despite the increase in prices, the Barisan Nasional government has been compensating the rakyat with direct and indirect financial aids like BR1M and aid to farmers and fishermen. All of these efforts were meant to counterweight the effect from price increase," he said.

BR1M, which stands for "Bantuan Rakyat 1 Malaysia", is also known as 1Malaysia People's aid. According to BR1M's website, the scheme was started in 2012 as part of the government's effort to assist low-income earners in Malaysia.

The ringgit has weakened against the US dollar. Bloomberg data showed that as at 12 noon, the ringgit was traded at 4.2340 against the US dollar. On Jan 2, 2015, the exchange rate was 3.5165.

Crude oil prices have risen. US crude oil futures were traded at about US$52 a barrel at 11:54am today versus US$42 on June 21, 2017.