KUALA LUMPUR (Dec 18): The government should not be blamed for price hikes as it is doing all it can to find a solution to the rising living costs caused by “external factors”, Prime Minister Datuk Seri Najib Razak said.

He said prices of goods and services had gone up due to decreased revenue from plunging oil prices, as well as the falling value of the ringgit.

He added that the ringgit had dropped because investors were selling the currency to invest in countries not affected by falling oil prices.

“As you can see, the ringgit trend is almost parallel with the trend of oil prices," Najib said in a message on his website today.

“Yet, there are quarters who wish to confuse society over the true reasons behind the rising cost of goods and the falling ringgit.

“They try to blame the government alone, when in fact the government is working hard to find a solution to manage the rising prices of goods caused by external factors.”

Najib cited the slew of special discounts for public transportation users that Putrajaya announced.

Elaborating on how falling oil prices contributed to the hike in the price of goods, Najib said the government was unable to introduce subsidies due to its decreased revenue.

“One analogy is that if we, as an individual, find our source of income reduced, then our ability to spend is limited.

“It is the same with the government, its capabilities are limited when the country's revenue declines.”

Najib added that the falling ringgit caused the prices of imported goods to go up.

But he assured that Putrajaya was looking into several measures to alleviate the people's suffering.

“I very much understand the people's cost of living issue.

“Allow me to state that the government is always trying hard to find a solution to reduce the people's burden,” said Najib.